By DayakDaily Team
KUCHING, July 5: Local craft beer brand 1602 has asserted that it operates fully within the law, while challenging the basis of a smuggling-related investigation following a police inspection at its warehouse here.
Copial Corporation Sdn Bhd executive director Dato Sri Vicent Lee Kee Lung said 1602 is a homegrown craft beer brewed in Kuching under full licensing and regulatory approvals.
“Our company holds all licences required under Malaysian law, including the brewery licence, wholesale licence, and liquor sales licence. Every statutory approval and permit required for the production, storage, transportation, distribution, and sale of our beer has been duly obtained under Malaysian law.
“In other words, every aspect of our operations is conducted in strict compliance with Malaysian laws and the regulatory requirements imposed by the relevant government authorities,” he said.
He said the company is fully tax-compliant, including excise duties, Sales and Service Tax (SST) and corporate taxes, and has consistently met all statutory obligations.
Warehouse inspection
According to Lee, police officers arrived at the company’s Kuching warehouse on the evening of July 3 to conduct an inspection and requested documentation related to its brewing and liquor business.
He said the company fully cooperated and provided all required licences and supporting documents.
Lee added that officers later indicated the warehouse and beer stock could be sealed and seized pending investigation, and raised concerns regarding the land use classification of the premises, which was allegedly zoned for residential use.
“The company took the view that if the issue related to land use or conditions of land title, such matters would ordinarily fall within the jurisdiction of the relevant land authorities.
However, the officers informed us that they were acting under instructions from the Wildlife Crime Bureau / Special Intelligence Investigation Unit of Bukit Aman Police Headquarters.
“In view of this, the company chose to cooperate fully and did not obstruct the investigation in any manner,” he said.
He further said the company later learned the investigation had been classified under suspected smuggling provisions under Section 135 of the Customs Act 1967, which he described as unexpected given that its products are locally brewed and fully taxed.
Disputes smuggling link
Lee said 1602 challenged the classification of the probe, maintaining that its products are legally manufactured in Malaysia and cannot be considered smuggled goods.
He denied any illegal link to the operations, reiterating that all products are brewed locally in Kuching and distributed under valid licences.
“Furthermore, certain matters that arose during the course of the investigation have given the company serious concerns as to whether the investigation has been conducted fairly, impartially, and strictly in accordance with the law.
We believe that there are a number of issues that require proper clarification, and it is therefore necessary for the true facts to be established through the appropriate legal process,” he said.
Concerns over investigation and public perception
Lee said the company had received information suggesting that the rapid growth of the 1602 brand had affected the market for illegally smuggled alcoholic beverages.
He also claimed to have received information alleging the existence of a well-organised smuggling syndicate involved in contraband goods, including alcohol, diesel, cigarettes and frozen products, with alleged links to individuals in various sectors.
However, he stressed that these remain unverified claims which require proper investigation by the relevant authorities.
Lee said the company was concerned that enforcement actions may have been influenced by external factors, but reiterated that 1602 respects law enforcement and will cooperate fully with any lawful investigation.
In addition, he raised concern that news reports published nationwide shortly after the inspection had prominently featured images of 1602 products, even before the investigation had reached any conclusion.
He said this had resulted in significant reputational damage, affecting the brand’s image, commercial standing and consumer confidence, and creating what the company described as a false impression linking its products to smuggled goods.
Lee added that the company deeply regretted the situation and felt it was necessary to publicly clarify the facts.
Commitment to cooperate
At the same time, Lee said 1602 will progressively submit information and evidence related to suspected illegal alcohol smuggling activities to the Royal Malaysia Police, the Royal Malaysian Customs Department and the Malaysian Anti-Corruption Commission for further investigation.
He said this is in the interest of protecting market integrity and upholding the rule of law, adding that every individual and business, regardless of status or position, should be subject to the law. — DayakDaily
