Pioneering Malaysian brewery cleared of smuggling suspicions after police probe
1602, which professes to be the first craft beer brewery in Malaysia, has been cleared of wrongdoing following a police investigation into alleged smuggling offences.
The probe was enacted on orders from Bukit Aman’s Wildlife Crime Bureau/Special Investigation Unit after a high-profile raid of the Sarawak brewery’s Kuching warehouse on 3 July.
At the time, officials said the brewery was being examined under Section 135 of Malaysia’s Customs Act 1967, which covers offences including the possession or handling of uncustomed and prohibited goods, as well as customs-duty evasion.
Officially founded in February 2023 by Malaysian brewer Randy Liew and German brewer Hans Gerner, 1602’s portfolio includes the products Pale Ale, Lager, Extra Dark and Wheat Beer.
The company, which alleges to be Malaysia’s first licensed craft beer brewery, has now been cleared of wrongdoing by the Attorney-General’s Chambers, with all seized products and merchandise returned to the company, according to 1602 managing director Datuk Seri Vincent Lee.
‘Professional, efficient and impartial’
In a statement, Lee thanked the Royal Malaysia Police for conducting a “professional, efficient and impartial investigation”.
“The findings ultimately confirmed that 1602 had not committed any smuggling offence, and all seized goods were therefore lawfully returned, enabling the company to continue its production, sales and business operations without interruption,” he added.
Throughout the inquiry, 1602 had maintained that its beer was produced domestically in Kuching and not imported.
Lee said the company supplied investigators with its brewery, wholesale and liquor sales licenses, as well as tax documentation in order to prove that the applicable duties and taxes had been paid.
Smuggling probe
As quoted by Borneo Post at the time, he said: “Every 1602 product is legally brewed in Kuching and all applicable duties and taxes have been duly paid.
“In these circumstances, the company cannot understand how products lawfully manufactured in Malaysia and fully tax-compliant could be treated as goods suspected of being smuggled.”
Lee’s statement came after reports that officials had seized RM26.6 million (£4.83 million) in “contraband beer and heavy equipment” in what was described as one of Sarawak’s biggest smuggling busts, as reported by Sarawak Tribute.
Yusri Hassan Basri, a senior Bukit Aman officer, said the raid uncovered “tens of thousands” of cartons of 1602 beer, on which duty was not paid.
Three Indonesian men, all aged around 35, were arrested during the operation.
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