2FIRSTS Interview with MVCC: License System Analysis, Recommend Building Business in Malaysia

Market by 2FIRSTS, edited by Sophia
May.10.2024
2FIRSTS Interview with MVCC: License System Analysis, Recommend Building Business in Malaysia
China's e-cigarette exports to Malaysia were valued at $21.72 million in February 2024, raising questions about upcoming regulations.

Malaysia, with a population of 33.94 million, is not only a populous country in Southeast Asia but also a major consumer of e-cigarettes. China has a huge export quantity of e-cigarettes to Malaysia, with exports reaching approximately 21.72 million US dollars in February 2024. Whether it's vape, heated e-cigarettes, nicotine pouches, or other novel tobacco products, the Malaysian market shows considerable potential.

 

Recently, there has been a viral rumor that Malaysia is planning to introduce a licensing system for e-cigarettes, where holding a local Electronic Vape Liquid/Gel Production License will become the standard for operating in the market. Some companies have already obtained these licenses, but is this true? As Malaysia prepares for a period of intensive regulatory implementation in 2023, which direction will the recent compliance regulations take? For Chinese companies looking to enter the Malaysian market and achieve success locally, what can they do? To answer these questions, 2FIRSTS conducted an interview with Ridhwan Rosli, the Secretary-General of the Malaysian Vape Chamber of Commerce.

 

Malaysia will implement a "license system," where an e-cigarette license (Electronic Vape Liquid/Gel Production License) will become the standard for regulating the market.

 

Secretary-General Ridhwan Rosli stated that currently, overall, any single license/permit cannot guarantee that a company is fully legal and compliant with e-cigarette-related laws in Malaysia.

 

In general, Malaysia's regulation of e-cigarettes is similar to that of other food and drug consumer products, divided into three levels: federal, state, and local. These three levels are relatively independent of each other, with their own legislative proposals and mechanisms for approval, and enforcement is also largely separate. Therefore, in order to comply with regulations in Malaysia, companies need to ensure compliance at all three levels.

 

How credible is the article about "INGOO" published on "The Page"?

 

Based on the above reasons, the article mentioned that "INGOO International team has become the first company in Malaysia to obtain a license for the full production and sale of e-cigarettes," but Ridhwan Rosli expressed skepticism about this claim. The concept of a "full production and sale license for e-cigarettes" is merely a vague idea. To his knowledge, no formal proposals have been submitted in writing from any party.

 

During the year 2024, the topic of discussion was the e-cigarette shop licensing system. This idea was proposed by Malaysia's former Health Minister Khairy Jamaluddin. Current Health Minister Dzulkefly Ahmad announced that he will be submitting a memorandum to the cabinet regarding regulatory suggestions based on the Public Health (Control of Smoking Product) Act 2024, proposed under the 852nd act. In the memorandum, former minister Khairy Jamaluddin suggested that the government should introduce a licensing system to restrict the sale of e-cigarettes to licensed specialty stores.

 

Ridhwan Rosli stated that it is possible for the companies mentioned in the article to have or be similar to traditional tobacco manufacturers with a "nicotine product license".

 

In which direction will Malaysia's compliance regulations develop in the near future?

 

In January 2023, the Malaysian Ministry of Health announced during a meeting with the Malaysian e-cigarette association that they are considering implementing a product-based approval system. Reidwan Rosli explained to 2FIRSTS that this approval system will be similar to the Pre-Market Tobacco Application (PMTA) introduced by the US Food and Drug Administration (FDA).

 

The product approval system is still under review. Reedwan-Rosli emphasized that even though domestic transactions in Malaysia are high and the black market is extensive, implementing the system and enforcing it will be a long process. However, the Malaysian e-cigarette association is working to establish a traceability mechanism for individual products to protect consumer rights.

 

What advice do you have for Chinese companies looking to enter the Malaysian market?

 

Ridhwan Rosli told 2FIRSTS that the chamber welcomes Chinese e-cigarette companies to develop and expand their market in Malaysia, a densely populated and potential-rich market. However, he also feels that the Chinese companies he has come across lack professionalism. He cited examples such as British American Tobacco (BAT), Philip Morris International (PMI), and Japan Tobacco International (JTI), which have been able to quickly establish distribution channels and dominate shelves in Malaysia, a "non-core" market, because they have built a professional team familiar with the local situation, market, and regulations. On the other hand, Chinese e-cigarette companies in Malaysia are mainly focused on "exporting to Malaysia" and have a sales-oriented approach, which Warren-Rossley believes lacks professionalism.

 

Ridhwan Rosli reminded that the lack of a professional team can result in significant hidden costs. For example, when applying for licenses, considerations such as the order of applying for multiple licenses and which state may have easier regulations for a certain type of license all require prior research and investment, or else companies may face various regulatory hurdles. Van-Rossley cited a real-life example where he encountered several Chinese e-cigarette companies wanting to host e-cigarette events, only to be temporarily shut down due to local regulations that did not allow it. These situations were all caused by a lack of understanding of local information.

 

During an interview with 2FIRSTS, he suggested that Chinese companies looking to enter the Malaysian market should consider establishing a local company in Malaysia. This would not only reduce the need for multiple licenses but also allow them to operate as a local business, streamline their sales channels, build their brand reputation, and establish good relationships with local regulatory authorities. He pointed out that this is also the approach taken by big companies like BAT and JTI. "Just by having an office," he mentioned, these e-cigarette companies can take control of their operations, reduce friction costs, and move forward smoothly.

 

Regarding Ridhwan Rosli

 

Ridhwan Rosli is a Malaysian entrepreneur with a strong interest in academia and civil society, holding both a bachelor's and master's degree. His academic contributions include co-authoring two books and publishing multiple articles in journals. Currently, he holds strategic positions as a shareholder and director in several public limited companies and private companies, spanning various industries. These companies include the Malaysian E-cigarette Association and Permodalan Tanah Melayu Berhad (TMCB), which was established in 2017.

 

We welcome news tips, article submissions, interview requests, or comments on this piece.

Please contact us at info@2firsts.com, or reach out to Alan Zhao, CEO of 2Firsts, on LinkedIn


Notice

1.  This article is intended solely for professional research purposes related to industry, technology, and policy. Any references to brands or products are made purely for objective description and do not constitute any form of endorsement, recommendation, or promotion by 2Firsts.

2.  The use of nicotine-containing products — including, but not limited to, cigarettes, e-cigarettes, nicotine pouchand heated tobacco products — carries significant health risks. Users are responsible for complying with all applicable laws and regulations in their respective jurisdictions.

3.  This article is not intended to serve as the basis for any investment decisions or financial advice. 2Firsts assumes no direct or indirect liability for any inaccuracies or errors in the content.

4.  Access to this article is strictly prohibited for individuals below the legal age in their jurisdiction.

 

Copyright

 

This article is either an original work created by 2Firsts or a reproduction from third-party sources with proper attribution. All copyrights and usage rights belong to 2Firsts or the original content provider. Unauthorized reproduction, distribution, or any other form of unauthorized use by any individual or organization is strictly prohibited. Violators will be held legally accountable.

For copyright-related inquiries, please contact: info@2firsts.com

 

AI Assistance Disclaimer

 

This article may have been enhanced using AI tools to improve translation and editorial efficiency. However, due to technical limitations, inaccuracies may occur. Readers are encouraged to refer to the cited sources for the most accurate information.

We welcome any corrections or feedback. Please contact us at: info@2firsts.com

Malaysia Police Seize RM12.7 Million in Illegal Vapes and Cigarettes as Probe Points to Sea Shipments From China
Malaysia Police Seize RM12.7 Million in Illegal Vapes and Cigarettes as Probe Points to Sea Shipments From China
Police in Malaysia’s Selangor state seized illegal vape products and contraband cigarettes worth about RM12.7 million (approximately $3 million) in two enforcement operations. According to New Straits Times and The Star, the vape-related operation uncovered 131,036 boxes of vape products, 4,900 bottles of e-liquid and 25,510 vape devices, valued at about RM9.4 million. Police said preliminary investigations indicated that some illegal vape products entered Malaysia through sea shipments from China before moving through storage and distribution networks.
Aug.10
IQOS Global Flagship Space to Open in Tokyo Ginza as PMI Expands Consumer Experience Strategy
IQOS Global Flagship Space to Open in Tokyo Ginza as PMI Expands Consumer Experience Strategy
Philip Morris Japan (PMJ) announced that it will open “IQOS Flagship Ginza” in Tokyo on September 4, 2026. The location will become the first global flagship space for PMI’s IQOS brand. PMJ said the venue will target adult smokers aged 20 and above and combine product experiences, community engagement and local cultural elements. The design will incorporate Japanese natural aesthetics and traditional craftsmanship. The launch reflects PMI’s broader strategy of strengthening consumer engagement through experiential retail and brand spaces. The existing IQOS Store Ginza is scheduled to close on August 30, 2026.
Jul.21
U.S. Appeals Court Says BAT Must Face Class Action Over Cigarette Labels
U.S. Appeals Court Says BAT Must Face Class Action Over Cigarette Labels
A U.S. appeals court ruled that British American Tobacco (BAT) must continue facing a consumer class action lawsuit over cigarette labels. The ruling allows the case to proceed but does not determine that BAT violated the law or is liable for damages. The case highlights ongoing legal risks facing major tobacco companies related to product labeling, consumer disclosures and product liability claims.
Jul.31
On-Site | PMI Brings IQOS, ZYN, VEEV and Marlboro Together at Its “Boulevard” at InterTabac 2026
On-Site | PMI Brings IQOS, ZYN, VEEV and Marlboro Together at Its “Boulevard” at InterTabac 2026
Market
Sep.16 by 2Firsts Perspectives
China’s Zhengzhou Tobacco Research Institute develops end-to-end heated tobacco analysis to trace aerosol compound origins
China’s Zhengzhou Tobacco Research Institute develops end-to-end heated tobacco analysis to trace aerosol compound origins
The Zhengzhou Tobacco Research Institute of China National Tobacco Corporation has filed a patent application for an end-to-end method to analyze the migration and transformation of chemical compounds in heated tobacco products. Using GC-Orbitrap/MS non-targeted analysis, the method compares tobacco substrate and aerosol samples to distinguish compounds transferred directly from the substrate from those newly formed during heating, while also calculating transfer rates. In an example involving nine heated tobacco products, the patent identified 17 newly formed thermal decomposition compounds and 38 transferred compounds.
Aug.13
AIR Invests $20 Million in Greentank, Deepening Capital Ties Across the Vape Supply Chain
AIR Invests $20 Million in Greentank, Deepening Capital Ties Across the Vape Supply Chain
Nasdaq-listed AIR Global has invested $20 million in preferred shares of Canadian vaporization technology company Greentank, deepening a partnership established in 2023. AIR gains a board nomination right, access to new technologies, enhanced commercial terms and long-term supply assurances, while retaining an option to increase its stake. Greentank’s Quantum Chip platform powers Crown Switch and forms part of AIR’s planned U.S. PMTA dossier, linking capital investment more closely with product technology, regulatory evidence and supply-chain control.
Special Report
Jul.29