Local vape industry braces for impact as new smoking law to take effect

PETALING JAYA: The local vape industry, which boast a RM4.13 billion (US$1 billion) market value, is bracing for impact as strict new smoking controls come into force on October 1.

The Control of Smoking Products for Public Health Act will ban the sale, purchase, and services related to all tobacco products and substitutes, including vapes, to anyone under 18.

South Morning China Post reported the industry stakeholders argue that the rules were implemented without sufficient consultation.

“It is not that we do not agree with the law. We agree that we must protect children.

“But we were only called in for one industry engagement session. After that they went straight to a briefing on the new law. It is as though they are saying they will simply do what they want,“ president of the Malaysian Retail Electronic Cigarette Association (Mreca), Adzwan Manas was quoted as saying.

Key concerns include restrictions on vape liquid volume, limiting bottles to 15ml and disposable devices to 3ml, a significant reduction from current standards.

The new law also mandates that vape products be removed from counters in supermarkets and sundry shops, only to be displayed upon request by customers who meet the legal age requirement.

Adzwan said that the reduction in vape liquid volume is too severe and suggested it be phased in over two years.

He also called on the government to provide equal display space for vape products alongside traditional tobacco items behind the counter.

“We have been asking for this law for a long time. We don’t want to delay it, we want it fast, but there needs to be more industry engagement.

“The industry is owned by us small and medium industries, so don’t squeeze us like this. Give us the opportunity to breathe,“ he added.

The Garden Vape operations manager, Joshua Eric John, predicts a potential 40% revenue drop due to the switch to 15ml bottles, as they will need to clear most of their inventory by either rebottling stock or selling at steep discounts.

“If they give us some time, maybe one or two years, then it’s OK. It’s actually a good idea but it needs more time and more discussion,” he said.

The Malaysian vape market was valued at nearly RM3.5 billion (US$850 million) in 2023.

Industry advocates warn that smaller businesses may be forced to close due to compliance costs and inventory losses.

The 2023 Global Adult Tobacco Survey by the Health Ministry shows that 4.8 million Malaysian adults regularly use tobacco and e-cigarettes.

Initially proposed in 2022, the Generation Endgame (GEG) bill sought to ban tobacco and smoking products for those born after January 1, 2007, which would have made Malaysia the second country in the Asia-Pacific to implement such a ban.

However, the generational ban was removed last year after opposition from businesses and lawmakers over revenue and constitutional concerns.