MALAYSIA’s vape industry is seen to have great potential as it has grown into a matured industry with a strong ecosystem within the country, creating its own ring of manufacturers, importers and retailers, with a majority of the workforce coming from the Bumiputera community.
Due to this, the Malaysian E-Vaporisers and Tobacco Alternative Association (MEVTA) backs up the call by the Malaysian Vape Chamber of Commerce (MVCC) in urging the Government to take immediate steps in regulating the vape industry, allowing it to reach its full potential.
“There are many local entrepreneurs that have invested in the vape industry over the past decade, growing this sector into a strong ecosystem. We believe many more local entrepreneurs will enter this market, driven by domestic and foreign investment, if regulations are introduced in Malaysia,” said MEVTA deputy secretary general Syamil Hanafiah.
He added that the association believes more jobs will be created throughout the supply chain once the necessary regulations are introduced.
A recent study by the MVCC showed that the vape industry is currently worth RM2.27 bil, as it involves 3,300 business that are predominantly owned by Bumiputera entrepreneurs. There are also 1.12 million vape users in Malaysia alone, based on statistics by the Ministry of Health (MOH).
“The study has confirmed that there are many vape users in Malaysia and a huge local vape industry has been established. This is a fact that cannot be ignored,” Syamil opined.
MEVTA believes that the size of the industry may be bigger as many players including shop owners and manufacturers choose not to market their business openly.
The MOH has yet to appropriately acknowledge vape products although an increasing number of smokers have switched to vape, as it has been proven with international studies showing that vaping is less harmful than smoking and is an effective tool in helping smokers quit smoking.
The association also hopes that tax placed on vape products needs to be widened to include vape e-liquids with nicotine and regulations need to be implemented to allow nicotine to be used in vape e-liquids.
“For now, the tax collection for the Government from the vape industry is small as the excise duty is only implemented for non-nicotine vape e-liquids. According to MEVTA’s estimation, less than 1% of the vape products in the market does not contain nicotine.
“Therefore, the excise duty needs to be broadened to include vape e-liquids with nicotine, and regulations must be introduced as soon as possible including regulations to permit the use of nicotine in e-liquids, as seen in developed nations,” Syamil explained. – Feb 17, 2021