CONCERNS over uncertain vape regulation are expected to impact and delay some of the commercial decisions and plans of AIRSCREAM, a UK-born premium international lifestyle vaping brand, which has in March pledged a RM100 mil investment over the next five years in its Malaysian operations.
Despite this challenge, the vape brand with presence in more than 80 markets and regions will continue to invest in its Malaysia’s shared services centre that has been set up to support its global commercial activities.
“We’re nevertheless committed in making Malaysia our global hub as evident in our having set up our support functions comprising marketing, legal, finance, compliance. PR (public relations and HR (human resources) bases out of our Malaysia office,” AIRSCREAM UK Ltd co-founder and CEO Sam Ong told FocusM.
“In the short-term, it is unlikely that we will manufacture in Malaysia due to regulatory uncertainty. This is especially so when our new liquid production facility in the Czech Republic is due to start production by end-2025.”
For the record, the Health Ministry (MOH) has fully enforced the Control of Smoking Products for Public Health 2024 (Act 852) since June as a measure to deal with an increase in the use of electronic cigarettes involving young people.
On a brighter note, however, Ong hailed constant regulation and committed enforcement by the Malaysian authorities amid concerns about the rise in vaping especially among underage kids
“Vaping could be the most effective non-tobacco smoke cessation alternative available for smokers,” he asserted. “In the next five to 10 years, hopefully under a stable regulatory environment, AIRSCREAM could achieve its objective to be the Top Three vape companies in Malaysia.”
At the moment, the booming global vape industry is poised to grow from US$25.5 bil in 2022 to US$66.2 bil by 2032, driven by technological innovations and shifting consumer preferences.
Specifically in Malaysia, vaping prevalence has risen from 3.2% in 2015 to 5.4% in 2020, suggesting a role in tobacco harm reduction despite regulatory challenges.
Nevertheless, regulatory landscapes vary with stringent flavour bans impacting market dynamics in regions like Europe and the US. At a glance, the market is shaped by a mix of local and international brands with demand for diverse flavours and advanced devices.
“As it is, the future of vaping in Malaysia will likely depend on how regulations evolve and how effectively the industry can balance innovation with public health goals,” projected Ong.
Globally, AIRSCREAM’s revenue stood at about RM200 mil in 2023. “In Malaysia, we’ve just begun our operations, hence, our revenue is still insignificant,” added Ong.
The Bristol-based AIRSCREAM which was founded in March 2018 has expected Malaysia to be a destination of choice because its domestic vape industry has grown in value to exceed RM3 bil over the last 10 years as well as providing employment to more than 30,000 Malaysians *
AIRSCREAM has recently obtained SIRIM certifications for its globally popular vape devices, namely AirsPops ONE USE 3ML and 6ML, AirsPops Pro and AirsPops Pro Lite. – Aug 9, 2024
* According to a report entitled Study on the Malaysian Vaping Industry 2021 by the Malaysian Vape Chamber of Commerce (MVCC).
