1.5M E-cigarette Consumers in Malaysia Caused 1B MYR on Taxation

The retail sales of e-cigarettes in Malaysia reached 2.49 billion ringgits (about 3.87 billion yuan). Meanwhile, the government is considering imposing a consumption tax of 1 billion ringgits (about 1.55 billion yuan) on e-cigarettes.

According to recent survey data from MVCC (Malaysian Electronic Cigarette Chamber of Commerce), Malaysia's domestic electronic cigarette industry has developed rapidly and become a valuable contributor to the country's economy. According to the data from 2022, the value of e-cigarettes in Malaysia was 2.27 billion ringgits (about 3.52 billion yuan) in 2019. Now, the retail value of the industry has increased by 9.6% to 2.49 billion ringgits (about 3.87 billion yuan).


Affected by COVID-19, the number of e-cigarette specialty stores has decreased, from 3,000 to 2,250, compared with 2019.


According to MVCC's latest estimates, there are 200 domestic manufacturers in Malaysia, while the number of importers has increased to 100. MVCC also estimates that 31,500 workers are working in vaping industry now.


The e-cigarette industry is also preparing to contribute a large amount of revenue to the country. Economists have analyzed that once the (tax) regulations come into effect, the government can collect up to 1 billion ringgits (about 1.55 billion yuan) of industry consumption tax revenue, give investors confidence, and increase domestic and foreign investment into the electronic cigarette industry.


According to the estimate by MVCC survey data, the number of e-cigarette consumers in Malaysia has increased from 1.4 million to 1.5 million users, as available data shows that sales of e-cigarette products in the market have increased. 


MVCC Secretary General Ridhwan Rosli stated "This further demonstrates the urgency of the regulation to ensure that vaping consumers in Malaysia have access to products that meet quality and safety standards."


Also read: 

Malaysian Govt. Urged to Differentiate Between Tobacco And Vape Policies



[1] Government poised to collect RM1bil excise tax revenue from domestic vape industry

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