Malaysia's E-Cigarette Regulatory Vacuum Raises Concerns; Industry Advocates for Regulation Over Ban

Key points:

1.The e-cigarette industry in Malaysia lacks a specialized regulatory body, leading to difficulties in verifying product quality and a high incidence of abuse.

2.The e-cigarette industry organization is calling on the government to establish a regulatory framework instead of a complete ban to prevent the expansion of the black market and worsening public health risks.

3.According to a 2023 study, the e-cigarette market in Malaysia has reached a scale of 34.8 billion ringgit (8 billion US dollars), with the industry chain covering over 7,500 stores and creating 31,500 job positions.

4.Several state governments have recently announced or moved forward with comprehensive bans on sales, leading to increased uncertainty in the industry.

According to a report by NST on May 11th, the Malaysian e-cigarette industry is currently facing a double pressure of regulatory vacuum and policy adjustments. Ridhwan Rosli, the Secretary General of the Malaysian Vape Chamber of Commerce (MVCC), recently stated in a media interview that there is currently no specific agency in the country regulating the ingredients and quality of e-cigarette products, leading to some products being used for illegal purposes such as drug mixing, posing a threat to public safety.

Reidwen emphasized that the lack of regulatory mechanisms allows e-cigarette products on the market to be unverified in terms of their legality and safety standards, further fueling abuse. In response to the government's plan to ban e-cigarettes and related products, he suggested that instead of an outright ban, it would be more effective to establish a comprehensive regulatory system to achieve better industry management and consumer protection.

The President of the Malaysian e-cigarette organization (MOVE), Samsul Kamal Ariffin, has also expressed concerns about the blanket ban policy. He pointed out that without compliant alternative channels, the market will inevitably be inundated with untested, uncertified products, and the country will lose potential tax revenue from the industry.

According to the 2023 Malaysia e-cigarette industry research report, the annual market size of the e-cigarette market in 2023 is expected to reach 3.48 billion Malaysian Ringgit (800 million US dollars), covering over 7,500 retail outlets and approximately 31,500 jobs. The study also indicates that 31% of Malaysian smokers have completely switched to e-cigarette products.

However, in the absence of central regulatory guidance, local governments have taken the lead. As of now, Kelantan and Johor have completely banned the sale of e-cigarette products since 2016; the Terengganu state government announced on April 24 that all stores will be banned from selling e-cigarette products starting from August 1; in early May, Kedah Menteri Besar Datuk Seri Muhammad Sanusi Md Nor also publicly stated his intention to follow Terengganu's lead, planning to raise the issue at an upcoming state executive council meeting.

At the same time, Health Minister Datuk Seri Dzulkefly Ahmad also stated on May 4th, encouraging more state governments to stop issuing e-cigarette sales licenses, supporting the trend of local control.