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Bureau of Internal Revenue Commissioner Romeo Lumagui Jr.
MANILA, Philippines — Philippine officials are calling for deeper regional cooperation and stronger multi-sector partnerships to curb illicit trade in Southeast Asia, saying that the transnational crime threatens both the economy and public safety.
The call was made during the “Combatting Illicit Trade in Southeast Asia” high-level briefing hosted by the Financial Times on August 5 at Shangri-La The Fort, Manila, in Taguig City.
Experts said the region’s porous borders, uneven enforcement and fragmented regulations continue to make it vulnerable to criminal operations.
Department of the Interior and Local Government Undersecretary for Peace and Order Nestor Sanares said illicit trade fuels corruption, finances criminal networks and exploits vulnerable communities.
“Whether it involves smuggling, counterfeiting, trafficking, or illegal drugs, these are not isolated issues. They are transnational, deeply rooted and continuously evolving,” Senares said.
Sanares noted that close coordination between the Philippine National Police, the National Intelligence Coordinating Agency and local barangays has served as an early warning system against illicit goods.
He also cited collaborations with brand owners and logistics companies through the Task Force Against Counterfeit Goods, which has disrupted counterfeit supply chains and safeguarded consumers.
According to Senares, cross-border cooperation is essential, saying that partnerships with Malaysia, Indonesia and Thailand have led to the interception of trafficking and contraband even before they reached Philippine shores.
Bureau of Internal Revenue Commissioner Romeo Lumagui Jr. warned that illegal trade not only undermines economic growth but also endangers public health and security.
“The dangers posed by illegal trade to the economy and to the overall well-being of the people cannot be underestimated,” he said, adding that proceeds from such operations are often used to fund organized crime or terrorism in other countries.
Lumagui said illicit trade in cigarettes and alcohol alone costs the Philippines billions of pesos in lost revenues annually, money that could have funded education, healthcare and infrastructure.
He also pointed to the risks posed by unregulated and unsafe products, particularly to young consumers.
Over the past two years, the BIR has formed multi-agency task forces, including the Illicit Trade Task Force, to carry out coordinated, intelligence-driven operations.
Lumagui cited a raid in San Rafael, Bulacan that shut down an illegal cigarette factory, freed 155 trafficked workers, and led to a P596-million tax deficiency case alongside human trafficking charges against the foreign operator.
He credited citizen tips for aiding surveillance and enforcement efforts and emphasized the need for technology such as real-time authentication tools to detect counterfeit goods.
“The Bureau continually champions tighter border controls enhanced by electronic verification, and closer collaboration within the Philippine government and across ASEAN,” Lumagui said.
“Our path forward lies in sustained investment in technology-enabled enforcement, updated regulations, expanded cross-border information sharing, and robust partnerships among governments, businesses, and civil society,” he added.
