Malaysia’s Health Ministry Clarifies: Ispire Licensed for Nicotine Manufacturing Only, Not for Local E-Cigarette Sales

Key Points:

1.The Malaysian Ministry of Health clarified that Ispire company's e-cigarette manufacturing license is only for export.

2.The Ministry of Health has not approved the sale of Ispire products in the domestic market of Malaysia.

3.In Malaysia, the production, import, and distribution of e-cigarettes must comply with relevant regulations.

According to Malaysian media theedge's report on June 4th, the Malaysian Ministry of Health (MOH) clarified that although Ispire Technology Inc has obtained a manufacturing license to produce e-cigarette devices that contain nicotine gel or e-liquid, it has not been authorized to sell them in the local market. The MOH reiterated that this license was issued by the Malaysian Ministry of Investment, Trade and Industry (Miti) solely for export purposes.

The Ministry of Health has stated that any organization planning to import, produce, or distribute tobacco products locally must apply for product registration with the Ministry of Health. The Ministry of Health regulates products, including e-liquids, in accordance with the Public Health Smoke-Control Products Act 2024 (Act No. 852).

The Ministry of Health confirmed in a statement that a foreign company has been granted a mid-term manufacturing permit to produce nicotine e-cigarette devices. This statement was in response to media reports at the end of May regarding Nasdaq-listed company Ispire obtaining the permit, claiming it to be "Malaysia is the first and the only nicotine manufacturing permit."

The report states that Ispire is engaged in the research, design, sales, commercialization, marketing, and distribution of e-cigarette products and its own brand of e-cigarettes. It has been granted permission to begin production in Johor, where the sale of e-cigarettes has been banned since 2016. The company first disclosed this information to the U.S. Securities and Exchange Commission on May 22nd, although details provided at that time were limited.

According to an investor presentation by Ispire in March of this year, the company has been operating a 31,000 square foot factory in Johor Bahru since February 2024, with up to seven production lines.

The second phase of the factory expansion plan is set to begin at the end of 2025, when the area will be expanded to 86,000 square feet. The manufacturing capacity will reach 61 million units of devices or 107 million pods per month. Michael Wang, CEO of Ispire, stated that in the future the facility will expand to include 80 production lines.

Malaysia has banned the sale of e-cigarettes in Johor, Terengganu, Penang, and Kedah states, as well as suspended the issuance of related licenses. Critics argue that approving Ispire Technology Inc could give the impression that the Johor state government supports the e-cigarette industry.

Health expert Dr. Zainal Ariffin Omar stated, "Malaysia's objective is to become a smoke-free country by 2040, but this license is not aligned with that goal."