THE regulations introduced through the Control of Smoking Products for Public Health Act 2024 (Act 852) will have a serious impact on the Malaysian vape industry which is now valued at RM3.48 bil.
Although Act 852 aims at ensuring the industry is regulated, there are concerns that the regulations are too strict, according to the Malaysian Vape Chamber of Commerce (MVCC) secretary-general Ridhwan Rosli.
“Act 852 is absolutely necessary to keep the vape industry on the right track. However, it is too strict,” lamented Ridhwan.
“For example, the ban on product displays will not only burden retailers but also affect the workforce and consumers.”
To date, Malaysia’s vape industry has grown with 2,500 specialist shops and 7,500 general stores.
Based on MVCC’s report, there are some 31,500 individuals working in the industry. However, this figure is expected to decrease if overly harsh regulations are imposed.
“Through a briefing session by the Health Ministry (MOH) recently, the industry was informed that it will be given six months until April 1, 2025 to comply with specialist shops having to tint their mirrors or modify their premises so that vaping products are not visible from the outside,” revealed Ridhwan.
“Both convenience stores and grocery stores, too, will need to make changes so vaping products aren’t visible in their premises.
“Such major change will burden many in the retail sector because it involves the cost of making modifications. Most vape retailers are small and medium enterprises (SMEs) without large financial resources to cover the additional costs required to meet the regulations.”
Industry at crossroads
On top of that, Ridhwan also shared that MOH has also issued notice that closed system products containing more than 3ml (millilitre) nicotine liquid cannot be sold anymore while open system products cannot exceed 15ml of nicotine liquid.
“This is a massive blow to the industry because currently, most products contain liquids of more than this level. This rule will affect the industry because it is not in line with the current demand from consumers,” asserted Ridhwan.
“In our estimation, more than 70%-80% of the products in the market exceed 3ml for closed system and 15ml for open system products.
“This situation will not only result in losses as existing products in the market will need to be disposed immediately but also hinder the future development of the local vape industry.”
He also raised concerns that operating costs will rise amid strict regulations which could lead to affected business outlets shutting down, thus impacting workforce in the industry.
“We cannot under-estimate the impact to be experienced by retailers and workers in the vape industry. Regulations should not be punitive to retailers especially as vape products are not tobacco,” appealed Ridhwan.
“MVCC hopes that the government can review the strict regulations contained in Act 852 and find a more holistic approach to regulate this industry without affecting businesses and the job opportunities that have been built.” – Oct 30, 2024
Main image credit: Vape Empire Bangsar
