Factors Influencing the Deterrence of Illicit Business Activities at the Kalimantan-Sarawak Border: The Moderating Effect of Police Competence

Peter Salang, Masan (2025) Factors Influencing the Deterrence of Illicit Business Activities at the Kalimantan-Sarawak Border: The Moderating Effect of Police Competence. DBA thesis, Universiti Malaysia Sarawak.

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Abstract

Border security remains a critical concern for nations, particularly along challenging and porous borders of the Kalimantan-Sarawak boundary between Indonesia and Malaysia where illicit business activities such as smuggling, human trafficking, and unauthorized trade thrive. Various factors are linked to the deterrence of illicit business activities, yet there are inconsistencies surrounding the relationships between these factors. As illicit business activities persist, this study investigates the relationships between law enforcement practices, resources optimization, geographical terrain, local community involvement, deterrence of illicit business activities, and the moderating role of police competence. Utilizing a quantitative methodology, data were collected via structured questionnaires from 419 respondents comprising Sarawak Brigade Police PGA personnel. Statistical analysis was conducted using Partial Least Squares Structural Equation Modelling (PLS-SEM) to evaluate the relationships among variables. The key findings indicate that each variable significantly influences the deterrence of illicit business activities, where local community involvement shows the strongest influence, followed by resources optimization, law enforcement, and geographical terrain. In addition, the findings highlight the importance of police competence, in which the results show that it plays a significant moderating role in deterring illicit business activities. Theoretically, this study contributes toward the body of knowledge under the situational crime prevention theory in which police competence plays a crucial role in reducing opportunities, in addition to technological advancements, environmental design, and community involvement. The main practical contribution of this study is far-reaching for police forces and border security agencies in managing the police force’s competencies. Recommendations for future research include further investigation into the competency framework of police officers and security agencies involved in transnational border security. Keywords: Deterrence of Illicit Business Activities, Law Enforcement, ResourcesOptimization, Geographical Terrain, Police Competence.

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