Malaysia’s Ministry of Health (MOH) clarified that its proposed smoking ban for everyone born after 2005 does not only cover cigarettes and tobacco products, but also vape, e-cigarettes, and heated tobacco products.
Credit: Peter Nguyen
Health Minister Khairy Jamaluddin announced at the World Health Organization’s (WHO) executive board meeting in Geneva about Malaysia’s plans to prohibit the sale of cigarettes and tobacco products to people born after 2005 in a bid to outlaw smoking for the next generation.
This means that Malaysians who are 17 years old today will not be able to legally buy tobacco, vape, or e-cigarettes next year when they turn 18, the current legal age for smoking in Malaysia, or ever, in their lifetime. Neither will subsequent generations be ever permitted to purchase cigarettes and other smoking products.
An MOH official said the prohibition covered all tobacco products, including cigarettes, cigars, tobacco leaves, and smokeless tobacco, as well as electronic devices like vape or e-cigarettes and heated tobacco products.
“Tobacco products, smoking substances, substitute tobacco products, and smoking devices,” the MOH official told CodeBlue.
Disposable e-cigarettes or vape pens are also sold in Malaysia. Some e-liquids and disposable vapes do not contain nicotine.
“Wait for RUU,” the MOH official said when asked if the proposed generational ban on the sale of tobacco and smoking products covered zero-nicotine vape liquids. He was referring to the new Tobacco and Smoking Control Act that the government plans to table in the upcoming Parliament meeting, according to the story.
The government previously announced during the tabling of Budget 2022 plans to tax vape and e-cigarette liquids containing nicotine, essentially legalising vape products that are presently under a grey area of regulation.
Current tobacco control legislations under the Food Act 1983 do not cover vape or e-cigarettes. However, under the Poisons Act 1952, nicotine can only be supplied by pharmacists or medical practitioners.
The government of Malaysia has postponed implementation of a new tax on e-liquids following complaints from vapor companies and consumers, according to The Malaysia Reserve.
The proposal called for a duty of MYR1.20 ($0.29) per ml of vape liquid or gel, which could have more than doubled the retail prices of bottles for open-systems.
“We are not surprised by this deferment, considering the blowback from vape industry players and consumers over the high duty rate,” said CGS-CIMB Securities analyst Kamarul Anwar.
Vapor companies said the tax would make e-cigarettes more expensive than tobacco cigarettes and force the industry to compete with much-less expensive black market products.
“The tax rates implemented should be made with proportional risks of the product benefits to the hardcore smoking community,” Malaysian Vape Industry Advocacy President Rizani Zakaria told The New Straits Times in October.
The proposal also ran into opposition from medical groups. “The taxation levels for tobacco harm reduction products in Malaysia must remain risk-proportionate, benchmarked against high-risk products such as cigarettes,” Federation of Private Medical Practitioners Associations Malaysia president Steven Chow said in a statement last November.
Malaysia currently prohibits nicotine sales for non-medical purposes. Earlier this year, Health Minister Khairy Jamaluddin informed the World Health Organization that the country would legalize and regulate vaping products to prevent youth access.
Malaysia’s health ministry stated that a bill on the regulation of tobacco, e-cigarettes, vape and shisha will be tabled in the Dewan Rakyat, the lower house of the bicameral Parliament, the federal legislature of Malaysia, next year.
Credit: Peter Nguyen
It could be tabled in the first term at the latest, according to Free Malaysia Today. The ministry confirmed this in a written reply to Shahrudidn Md Salleh (Pejuang-Sri Gading), who asked about the status of the bill that was supposed to be tabled last year.
In the reply yesterday, it said the bill, which was first drafted in 2016, had been sent to the Attorney-General’s Chambers in August 2019 to be enacted but was later returned to the ministry due to changes in the government. The ministry said the bill will pave the way for comprehensive regulation of conventional tobacco products and new e-cigarettes and other vaping products.
It also said it had applied for a date to the Legal Affairs Division of the Prime Minister’s Department to table the bill.
More than $2 million worth of vaporizers, components, e-liquids and other illegal tobacco products have been seized in Singapore. Authorities are calling the discovery the “largest haul” in the city-state to date.
Credit: Richie Chan
Acting on a tip-off, officers from the Health Sciences Authority (HSA) inspected an industrial storage facility located north, towards the border with Malaysia. They discovered 10,057 vapes, 48,822 vaporizer components, and large quantities of vape juice, according to a press release.
“This is the largest seizure haul of tobacco products by HSA, in terms of the volume and street value of e-vaporizers,” officials said in a statement, adding that the products had an estimated street value of $2,260,825. No arrests have been made but HSA said that three people were currently “assisting in investigations.” The authority also revealed that more than 170 vape raids were carried out between 2018 and 2020.
The Royal Malaysian Customs Department has seized RM2.7 million worth of e-liquid, which also carried RM273,480 in unpaid taxes. The KLIA Central Zone Enforcement Unit III personnel conducted an inspection on two containers from the United States in Northport, Port Klang, at 6pm on June 24.
Central Zone Customs principal assistant director Datuk Zazuli Johan said the team found 1,276.24 liters of e-liquid suspected to contain nicotine that had been declared as “atomizer devices” (hardware) in the containers. The e-liquid was also found to have exceeded their expiration date, according to the Philippine Star.
“We believe that the product would be repackaged before being distributed in the local market. The consignment was brought in without a valid import license and tax on it had not been paid,” he is quoted as saying in a statement on July 2, adding that e-liquid is classified as prohibited merchandise in Malaysia under the Customs (Prohibition on Imports) Order 2017.
Malaysia’s vapor market has grown to an estimated $558 million with the help of small-sized and medium-sized businesses.
By Vapor Voice staff
The Malaysian vaping industry is valued at MYR2.27 billion ($558 million). The figure is one of the primary findings of the recently released Study on the Malaysian Vaping Industry report, commissioned by the Malaysian Vape Chamber of Commerce (MVCC). The report states that the size and scale of the Malaysian vapor market continues to grow, fueled by a majority of small-sized and medium-sized enterprises (SMEs) and driven by Malaysian entrepreneurs.
“It is estimated that there are more than 3,300 businesses directly within the vape industry in Malaysia with a workforce of more than 15,000 workers,” MVCC president Syed Azaudin Syed Ahmad said. “This industry is contributing positively to the national economy, and if regulated appropriately, will also contribute to the government’s revenue.”
Malaysia is in good position to attract foreign direct investments (FDI) into the vaping sector as other sectors are seeing challenges to attract investments, according to Syed Azaudin. Malaysia has approximately 1.12 million vapers or approximately 4.9 percent of the total Malaysian population, according to the National Health and Morbidity Survey 2019 from the Malaysian Ministry of Health.
“MVCC believes the vaping sector is ready and capable to attract quality FDIs given its established ecosystem that global investors and multinational companies would find appealing,” he said. The global e-cigarette and vape market size is expected to reach $67.31 billion by 2027, registering a revenue-based CAGR of 23.8 percent from 2020 to 2027, according to a study conducted by Grand View Research.
“Correspondingly in Malaysia, the growth of the vape industry is on an upward trend, showing a CAGR growth of 44 percent in 2019 compared to 2018, which represents a significant economic potential for the country,” the report states. “Comparatively, other up-and-coming fast-growing sectors in Malaysia, such as the growth of e-commerce, is expected to increase at a CAGR of 14.3 percent between 2020 and 2024 while the technology market is expected to garner a CAGR of 8.9 percent between 2019 and 2023.”
The report estimates that workers in the vape industry were paid up to MYR450 million in wages in total in 2019. The MVCC commissioned Green Zebras, a market research agency, to conduct the study. The study was aimed at assessing the value of the Malaysian vape industry and its contribution to Malaysia’s economy.
“Regulating the growing vape industry will go a long way not only in contributing to Malaysia’s economy but also in expanding FDI into this industry, which is growing rapidly in the region,” the report states. “Ultimately, regulating this industry has many positive knock-on effects, including adding revenue in the form of taxes to the government.”
The Malaysian government implemented an excise tax on vape devices and e-liquids, which took effect on Jan. 1, 2021. Vaping devices are subject to an excise duty of 10 percent as well as an excise duty of MYR0.4 per/ml for e-liquids. However, the tax regime has since been clarified that it is only a tax on nonnicotine-based products. Syed Azaudin says the organization believes that the tax regime needs to be broadened to include e-liquids with nicotine, which make up 97 percent of the Malaysian market. That would allow the vapor market to contribute to the Malaysian government’s revenue more effectively.
“The Malaysian vaping industry has significant potential that can be unlocked with practical and comprehensive regulation that must include the use of e-liquids with nicotine. This will spur the growth of SMEs, which will in turn create jobs and generate tax revenue for the government,” added Syed Azaudin. “MVCC has spearheaded this study in order to provide the government with a solid data-driven foundation to immediately introduce regulations on the vape industry. Even though the government had decided in 2016 to introduce regulations for this industry, none have been instituted so far for the past five years.”
Credit: MVCC
Another recent survey suggests that a large majority of Malaysians want the government to regulate the vaping industry more heavily. The Malaysian Insights & Perspectives on Vape survey, commissioned by the Malaysian Vape Industry Advocacy (MVIA), showed that 87 percent of Malaysians agree that a tax should be imposed on vaping products, and 74 percent think that the revenue collected from vape products could be spent by the government on important sectors, such as education.
A sample size of 1,025 Malaysian adults were polled and “is reflective of the perception of all Malaysian adults nationwide.” Also conducted by Green Zebras, the survey was commissioned to get a better understanding of Malaysians’ perceptions on vaping and its use as a method of tobacco harm reduction, according to the MVIA.
The MVCC report states that the additional benefits of regulating the industry and providing standards are higher quality products that will likely strengthen demand, elevate innovation and broaden consumer choices. The overall market will benefit from factors like cost-effectiveness as well as strengthening of distribution channels, which will drive growth. Local players will also be able to expand operations both globally and locally.
“It is expected that regulations will create certainty and lead to more investments into the market to provide choice and innovation of products, thereby elevating and spurring SMEs to raise their standards, quality and expertise,” said Syed Azaudin. “As the vape market continues to expand worldwide, this will also enable Malaysian players to have the opportunity to compete in the global market.”
Eighty-eight percent of Malaysian vapers successfully quit smoking cigarettes due to their vape products, reports the New Straits Times, citing a survey commissioned by the Malaysian Vape Industry Advocacy (MVIA).
Conducted by the Green Zebras market research firm, the survey also reported that 79 percent who are dual users (vapor products and cigarettes) have reduced the number of cigarettes they smoke since they began vaping.
MVIA president Rizani Zakaria noted that the survey’s results clearly show that vaping can be an effective tool to help smokers quit cigarette smoking and is a much less harmful alternative.
“There is a real need for the Malaysian government to recognize the benefits of vaping, especially the potential that it has to help smokers to quit cigarette smoking by switching to a less harmful product,” he said.
There is a real need for the Malaysian government to recognize the benefits of vaping.
“As it stands, the vape products are still unregulated, and we believe it is time for the government to look into introducing regulations on the products and adopt policies that would encourage smokers to switch to vaping that is less harmful.”
A large majority of Malaysians want the government to regulate the vaping industry more heavily, according to a recent survey. The Malaysian Insights & Perspectives on Vape survey, commissioned by the Malaysian Vape Industry Advocacy (MVIA), showed that 87 percent Malaysians agree that a tax should be imposed on vaping products and 74 percent think that the revenue collected from vape products could be spent by the government on important sectors such as education.
Credit: Peter Nguyen
The survey also revealed that 76 percent of those polled think the country’s economy will benefit from such regulations, according to an article in the Malay Mail. A sample size of 1,025 Malaysian adults were polled and “is reflective of the perception of all Malaysian adults nationwide.” Conducted by Green Zebras, a market research company, the survey was commissioned to get a better understanding of Malaysians’ perception on vaping and its use as a method of tobacco harm reduction, according to the MVIA.
“The opinion poll shows most Malaysians want regulations on vape products. Official reports from the Ministry of Health indicate that there are over one million vapers in Malaysia and yet there are no regulations in place, leaving consumers no choice but to use unregulated products,” said Rizani Zakaria, president of MVIA. “Recent reports from local industry groups have already confirmed that the vape industry has significant potential to contribute to the Malaysian economy with capabilities to create jobs, develop existing businesses and SMEs within the industry, and attract investments. This is a fact that cannot be ignored, and the government must act quickly to introduce regulations on vape products.”
The Malaysian Vape Chamber of Commerce (MVCC) said that the Malaysian vaping industry is valued at RM2.27 billion ($558 million). The figure is one of the primary findings of the recently released “Study on the Malaysian Vaping Industry” report, commissioned by the MVCC.
MVCC president Syed Azaudin Syed Ahma (center) Credit: MVCC
The MVCC has stated previously that the vape industry in Malaysia is too substantial to remain unregulated and has urged the government to immediately introduce appropriate regulations to create a positive multiplier effect to the Malaysian economy.
MVCC commissioned Green Zebras, a market research agency, to conduct the study, the first of its kind in the country, according to a MVCC release. The report found that there are more than 3,300 businesses related directly to the vapor industry, with a workforce of more than 15,000 workers. It was further estimated that workers in vape industry were paid up to RM450 million in wages in total in 2019.
“Our data strongly indicate that this sector is a viable and growing industry in Malaysia and can contribute significantly to the local economy. It has already facilitated the growth of local entrepreneurs, many of which are local and bumiputera businesses,” MVCC president Syed Azaudin Syed Ahmad said. “In addition, the Malaysian vape industry currently has an established ecosystem comprising manufacturers, importers and retailers, and a growing distribution and logistics network.
Credit: MVCC
In Malaysia, the government has already announced an excise tax on vape devices and e-liquids which has been implemented since 1st January 2021, according to thesundaily.com. However, MVCC believes that the tax regime needs to be broadened to include e-liquids with nicotine which make up 97 percent of the Malaysian market, in order to effectively contribute to the government’s revenue.
“The Malaysian vaping industry has significant potential that can be unlocked with practical and comprehensive regulation that must include the use of e-liquids with nicotine. This will spur the growth of SMEs, which will in turn create jobs and generate tax revenue for the Government,” added Syed Azaudin.
Malaysia is in good position to attract FDI into vaping sector as other sectors are seeing challenges to attract investments, according to Syed Azaudin. “MVCC believes the vaping sector is ready and capable to attract quality FDIs given its established ecosystem that global investors and multinational companies would find appealing,” he said.
The global e-cigarette and vape market size is expected to reach $67.31 billion (RM272.54 billion) by 2027, registering a revenue-based CAGR of 23.8 percent from 2020 to 2027, according to a new study conducted by Grand View Research.
“MVCC has spearheaded this study in order to provide the Government with a solid data driven foundation to immediately introduce regulations on the vape industry,” Syed Azaudin said.
To download the full report, visit the MVCC’s website.
The Malaysian Vape Chamber of Commerce (MVCC) urged the government to impose excise duty on vape e-liquids with nicotine. In a statement, the MVCC also said “the vape industry must be quickly regulated, including regulating standards for vape e-liquids with nicotine.”
Credit: Peter Nguyen
During the Budget 2021 presentation in November, it was announced that an excise duty on liquids for e-cigarettes and vaporizers at a rate of RM0.40 per ml would be imposed in January. Recently, the Royal Malaysian Customs Department announced that the tax shall be imposed only on non-nicotine vape liquids.
Syed Azaudin Syed Ahmad, president of MVCC, said, “Any taxation and regulation imposed should be holistic and take into account the current market situation,” according to an article in the Malay Mail. “In the local market, more than 97 percent of the vape e-liquids sold contain nicotine, with a similar trend seen in other countries. However, there is still no taxation and regulation covering vape e-liquids with nicotine.”
He added that if the tax “is implemented only for non-nicotine liquids, the move would be an exercise in futility as it does not take into account industry and consumer needs.”
MVCC estimated that the vape industry in Malaysia is worth more than RM2 billion annually.
“Countries such as UK, New Zealand and Canada acknowledge the role of vape in helping cigarette smokers quit smoking and switch to vaping, which has proven to be less harmful than smoking,” said Syed Ahmad. “These countries also have regulations that cover the industry and enable consumers to obtain products that adhere to standards that have been set.”
