‘Cigarette smuggling helping fund terror groups’

KUALA LUMPUR – The widespread proliferation of counterfeit cigarettes in the Philippines, particularly in Mindanao, is reportedly funding activities of local terrorist groups, according to reports by industry stakeholders.

Shaiful Mahpar, corporate affairs and communications director of Japan Tobacco International Philippines, confirmed the report during a briefing conducted by Valentin Dinca, JTI regional director for North and South Asia, in this city on Monday.

JTI, whose regional headquarters for South Asia is in Kuala Lumpur, is the manufacturer of Winston, Camel, Mighty and Mevius cigarette brands.

An official of the Manila-based JTI confirmed the report to The STAR, which he said came from the US State Department.

Mahpar said there was also a report in Asia regarding southern Mindanao.

“Yes, I believe it is funding terrorists. I read that report,” Mahpar said.

He said he could not recall which local armed groups were identified in the report.

A verification of the July 2026 report of the United Nations Office on Drugs and Crime showed that the Moro Islamic Liberation Front, Moro National Liberation Front and Bangsamoro Islamic Freedom Fighters were mentioned in the report.

Revenue losses of the Philippines due to tobacco smuggling grew from P56.3 billion in 2024 to P61.8 billion in 2025, making the illegal activity a P118-billion industry in just a year, according to data provided by the Euromonitor International to the European Union-ASEAN Business Council.