THE Health Ministry (MOH) should focus on implementing the long-delayed regulations for the vape industry instead of introducing new proposals that will impact local entrepreneurs and employees in the industry.
The industry is currently in a state of uncertainty due MOH’s failure to prioritise the implementation of vape regulations, according to the Malaysia Retail Electronic Cigarette Association (MRECA).
“We are hanging without a rope,” its president Datuk Adzwan Abd Manas pointed out. “Although the Government has announced a taxation framework for vape liquids with nicotine effective Jan 1 this year, this has now been delayed for four months because the Government still refuses to implement regulations for the industry.”
Adzwan further stressed that the MOH needs to prioritise the implementation of vape regulations first.
During the tabling of Budget 2022, the Government announced that it would implement a taxation framework for vape liquids with nicotine starting January 2022. However, this move has been postponed indefinitely.
MRECA estimates that this delay has resulted in the Government losing more than RM750 mil a year in tax revenue.
“Due to postponement and delay in the implementation of vape regulations by the MOH, it is estimated that the Government incurs a loss circa RM62 mil every month from the failure to collect taxes,” added Adzwan.
According to him, the MOH’s proposal to prohibit the sale of vape alongside cigarettes despite the fact that both products are distinct is akin to declaring war on the local vape industry which employs 3,000 local entrepreneurs and 15,000 employees.
“The MOH should not be in a hurry to experiment with the ban on vape sale through the ‘Generation End Game’ proposal. This move will be a great blow to local entrepreneurs and employees in the industry,” cautioned Adzwan.
“In fact, it will also send the wrong message to domestic and foreign investors, especially those from other industries such as sugary drinks and alcohol which can also be imposed with the same regulations regardless of the rights of adults in making choices.”
Moreover, industry players have not been engaged to be directly involved in the discussions on the proposal. This proposal was only made known to the local industry through media reports.
“The ban on the sale of vape to those reaching adult age is contrary to the approach taken in developed countries such as the UK and New Zealand where tobacco harm reduction strategies are implemented by promoting the use of vape to reduce smoking incidences,” justified Adzwan.
“The MOH must be transparent and take into account the potential of vape products in helping smokers quit smoking instead of categorising vape and cigarettes as the same product so as to prevent their sale.” – April 27, 2022
