THE Malaysian Government should not undermine the true potential of the local vape e-liquids manufacturing industry – now of the largest in the world – but to harness it as a potential income generator for the country’s economy.
This is because Malaysia is one of the biggest producers of vape e-liquids in the world with many local manufacturers having received various international awards or being acknowledged as industry leaders.
“The vape e-liquids manufacturing industry has the capabilities of contributing to the country’s income,” reckoned Rustam Affendi Ismadi Rahimi, director of COF Industry Sdn Bhd, one of the largest local vape e-liquids manufacturer.
“Malaysia has proven to be the world’s largest producer of vape e-liquids and the Government should take advantage of this.”
Citing a research by Grand View Research Inc, Rustam said the global vape e-liquids market size which was valued at US$1.4 bil (RM5.9 bil) in 2020 is expected to expand at a compound annual growth rate (CAGR) of 13.4% from 2021 to 2027.
Given such landscape, COF said it was important for the Government to implement comprehensive monitoring of the industry through effective regulations to ensure that the industry continues to grow at a healthy level.
During the tabling of the 2021 Budget, the Government announced an excise tax on non-nicotine vape e-liquids at a rate of 40 sen per millilitre which is implemented in 2021.
“This move shows that the Government is aware of the vape industry growth. However, non-nicotine vape e-liquids only make up less than 10% of the total products in the market,” revealed Rustam.
“The Government must also consider implementing taxation on vape e-liquids with nicotine and implement comprehensive regulations through a specific bill. This can help the vape e-liquid manufacturing industry to grow at a positive rate.”
COF also expressed its disagreement against the statement of a tobacco company which was reported in the media recently. The company suggested that Government raise the excise tax rate for vape products to be equal to that of traditional cigarettes. COF sees this move as unreasonable.
“The Government must look into this matter from the point of view of developing the local industry as opposed to tax collection alone. Our country is known around the world as a producer of vape e-liquids, not devices,” opined Rustam.
“We hope that we have the opportunity to participate in discussions with the Government to present the industry’s point of view. We do not want any party to take advantage of this situation.”
Additionally, COF said the development of the vape e-liquids manufacturing industry can indirectly help the country to overcome the growing unemployment rates due to the COVID-19 pandemic.
“The local vape industry involves approximately 3,300 businesses with a workforce of 15,000 employees. If this industry is given due attention, there will be more business opportunities which will lead to an increase in job opportunities,” he added. – Aug 19, 2021