Analysis of Proposed 2023 GEG Bill in Malaysia from BAT, PMI and JTI

Recently, Malaysia has been going through the process of reviewing the Public Health Tobacco Product Control Act (GEG Act) of 2023. It has been reported that the formulation of this act has also sought input from international tobacco companies.

According to a report submitted by 2FIRSTS to the Special Committee on Health in Malaysia's Parliament (PSSC), the international tobacco companies involved in the proposal include Philip Morris International (PMI), British American Tobacco (BAT), Japan Tobacco (JTI), and others.

According to PMI's perspective, the categorization of e-cigarette devices in this bill will become a major obstacle to existing and future foreign investments, especially in the state of Johor. BAT firmly believes that e-cigarettes contribute to harm reduction and therefore suggests that Malaysia adopt appropriate laws and policies to encourage smokers to switch to lower-risk tobacco products. JTI also explicitly states that Malaysia does not need to enact new legislation and can directly adopt the 2004 Smoking (Advertisement and Sale) Act (PPKHT), a proposal which PMI also supports.

Here are the specific proposals from three companies:

Philip Morris International (PMI)

• The categorization of e-cigarette devices in the proposed bill will likely pose a significant obstacle for both current and future foreign investments, particularly in the electrical and electronic sectors, most notably in the state of Johor. The manufacturing of e-cigarette devices is an evolving branch within the electrical and electronic industry.
• E-cigarette devices can be regulated separately from the present case through laws and regulations to meet existing technological and user demands, including compliance with international electrical standards.
• The government must rigorously enforce existing laws to reduce illegal trade and ensure compliance with the 2004 Smoke-Free Environments (Prohibitions Advertising and Sales) Act (PPKHT). Additionally, the government needs to strengthen age verification controls and take measures to prevent underage use of e-cigarettes.

British American Tobacco (BAT)

• Methods to reduce the harm caused by tobacco are crucial in developing policies to reduce the prevalence of smoking. Past studies have indicated that e-cigarettes have the potential to mitigate such harm.
• This method to reduce tobacco harm has been proven successful in other countries and Malaysia is also advancing its implementation based on its own research findings.
• It's expected to reduce the smoking rate in Malaysia to below 5% by 2040 through the implementation of appropriate laws and policies. By encouraging smokers to switch to lower-risk tobacco products, it aims to make a significant impact on public health in the country.

Japan Tobacco (JTI)

• The government should engage in further discussions and analyze the suitability of Malaysia's "Smoke-Free Generation" policy.
• Regulating e-cigarette products and nicotine-containing e-cigarette liquids can be enforced through the existing 2004 Smoking (Prohibition of Advertisement and Sale) Act (PPKHT), without the need for new legislation.