Hong Kong Customs seizes suspected illicit cigarettes worth about $260 million in second phase of "Cutflow" operation
Hong Kong Customs, in collaboration with Singapore Customs, mounted the second phase of a joint operation codenamed "Cutflow" to combat illicit cigarette smuggling activities between mid-May and July this year, and dismantled a transnational illicit cigarette smuggling syndicate. During the operation, Hong Kong Customs seized a total of about 58 million suspected illicit cigarettes with an estimated market value of about $260 million and a duty potential of about $192 million, and arrested five men.
Through intelligence exchanges with Singapore Customs, as well as risk assessment and intelligence analysis, Hong Kong Customs seized the batch of suspected illicit cigarettes in 13 seaborne containers from Singapore and arrested five male drivers, aged between 62 and 71.
Investigations into the related cases are ongoing. Customs will continue to trace the source and the flow of the illicit cigarettes. The likelihood of further arrests is not ruled out.
The outcomes of the operation fully demonstrate Customs' notable enforcement effectiveness on combating cross-boundary illicit cigarette activities at source through international co-operation. Customs will continue to maintain close liaisons and strengthen intelligence exchanges with Mainland and overseas law enforcement agencies to vigorously combat cross-boundary illicit cigarette activities.
Customs stresses that smuggling is a serious offence. Under the Import and Export Ordinance, any person found guilty of importing or exporting unmanifested cargo is liable to a maximum fine of $2 million and imprisonment for seven years upon conviction. Moreover, under the Dutiable Commodities Ordinance, anyone involved in dealing with, possession of, selling or buying illicit cigarettes commits an offence. The maximum penalty upon conviction is a fine of $1 million and imprisonment for two years.
Members of the public may report any suspected illicit cigarette activities to Customs' 24-hour hotline 182 8080 or its dedicated crime-reporting email account (crimereport@customs.gov.hk) or online form (eform.cefs.gov.hk/form/ced002).
Hong Kong Customs seizes suspected illicit cigarettes worth about $260 million in second phase of "Cutflow" operation Source: HKSAR Government Press Releases
Speech by SITI at 2026 WAIC UP! Global Summit
Following is the speech by the Secretary for Innovation, Technology and Industry, Professor Sun Dong, at the 2026 WAIC UP! Global Summit today (January 16):
Professor Sun Dong, Photo by Bastille Post
Ms Qiu (Vice President of DLG Exhibitions & Events Co Ltd, Ms Qiu Haoming), Hendrick (Hong Kong Special Administrative Region's Deputy to the 14th National People's Congress, Mr Hendrick Sin), Terry (Chief Executive Officer of Hong Kong Science and Technology Parks Corporation, Mr Terry Wong), Duncan (Member of the Legislative Council, Mr Duncan Chiu), Alex (President of the Hong Kong Information Technology Federation, Dr Alex Chung), distinguished guests, ladies and gentlemen,
Good morning. I am delighted to join you at the 2026 WAIC UP! Global Summit.Today's theme, "Wake Up More!", is a call not only for any single company, city, or country but also a timely reminder for all of us to embrace a new era of intelligence, possibility, and shared responsibility.
A big thank you to the organiser for choosing Hong Kong as a destination for this remarkable Summit. This is another testament to Hong Kong's unique position as a "super connector" and a "super value-adder" that thrives on global connection and creativity. We are delighted to see that world-class academics, industry experts and leading entrepreneurs from around the world gather here today to explore the future of AI and the opportunities it brings to us.
AI has become a core engine driving global technological and economic progress, and all economies recognise its strategic importance.Under the unique advantages of "one country, two systems", Hong Kong is also seizing this AI moment.With a focus on "strengthening infrastructure and promoting the application-oriented approach", Hong Kong is steadily advancing a series of AI initiatives.
In terms of R&D (research and development), the Hong Kong Special Administrative Region (SAR) Government is working to establish the Hong Kong AI Research and Development Institute within this year, which is a new engine for discovery, translation, and real-world impact.Through our AIR@InnoHK research cluster, we have funded the establishment of 16 R&D laboratories focusing on AI and robotics technologies.Notably, the "HKChat" AI chatbot developed by the Hong Kong Generative AI Research and Development Center has already launched its public version.
Hong Kong's total computing power has now reached 5 000 PFLOPS, with the Cyberport AI Supercomputing Centre contributing 3 000 PFLOPS. This centre is a critical hub that supports Hong Kong's AI development, and its capacity will continue to expand to meet growing demand. The upcoming data facility cluster at Sandy Ridge in North District will further provide advanced computing power facilities, promoting the development of data and AI-related industries in Hong Kong.
And at the heart of all progress is talent. We recognise that people, not algorithms, will shape the future of AI. Our strategy is simple yet powerful: "Promote technology with talent, lead industries with technology, and attract talent with industries". To this end, we have included in the Talent List a number of professions in the I&T (innovation and technology) segment, including experienced AI Specialists, to facilitate global experts, like all of you here, in developing your careers in Hong Kong.
Looking ahead, the Hong Kong SAR Government will continue to foster strong collaboration among the Government and the industry, academia, research and investment sectors. The future of AI cannot be built by anyone or any place alone. It requires a global community that is awake, aware, and aligned.I am confident that this Summit will spark new ideas and inspire us to wake up more for high-quality AI development.
I wish the Summit great success. Thank you.
The 2026 WAIC UP! Global Summit, Photo by Bastille Post
