A COALITION of three Malaysian vape organisations/associations which represent industry players and vape users is urging the Government to introduce regulations for the vape industry, especially with regard to the use of vape e-liquids with nicotine.
Currently, the domestic vape industry is valued at RM2.27 bil, involving 3,300 businesses with a workforce of more than 15,000. There are more than one million vape users in Malaysia.
“Regulations will provide the industry a clear direction as it has with other countries that have regulated the vape industry. Additionally, it will help the growth of local small and medium enterprises (SMEs) in the industry,” the coalition pointed out in a media statement.
“With clear regulations and directions, the vape industry has the potential to attract domestic and foreign investments as the local vape industry has a sizeable ecosystem comprising manufacturers, importers, distributors, retailers and users.”
Signatories of the media statement are the Malaysian Vape Chamber of Commerce (MVCC) information head Ashraf Rozali; Malaysian Vape Industry Advocacy (MVIA) president Rizani Zakaria and the Malaysia E-Vaporisers & Tobacco Alternative Association’s (MEVTA) deputy secretary-general Syamil Hanafiah.
Moreover, the coalition opined that regulating the industry will create more employment opportunities, particularly in the manufacturing of vape devices and e-liquids as well as in the sale and distribution of the products in the market.
“This will positively contribute to the growth of the Malaysian economy which is much needed in the current climate as the COVID-19 pandemic has significantly affected multiple industries and workers,” noted the coalition.
“Regulations will also ensure users have access to regulated products that are safe. It will also help curb misuse of the product especially in ensuring there is no sale or use by minors.”
Disagreement with JTI’s suggestions
In a related development, the coalition also expressed disagreement with the statement made by Japan Tobacco International (JTI) as reported by the media recently. The proposal tabled by JTI to increase the taxation rate for vape to be equal to cigarettes is unwarranted, according to the coalition.
“The excise tax rate introduced by the Government earlier this year for vape devices and non-nicotine e-liquids should not be increased,” insisted the coalition.
“Instead, the taxation framework should be expanded to include vape e-liquids with nicotine. This should be accompanied by the introduction of regulations for all vape products including setting a standard for the contents in vape e-liquids.”
If the tax rate imposed on vape products are high, the coalition noted that it will not only deter the efforts by smokers to switch to less harmful alternatives but will also encourage the smuggling of vape products to evade taxation.
“Further, equating each milliliter of vape e-liquid with 20 sticks of cigarettes is illogical,” countered the coalition.
“These two products are not the same and they cannot be compared equally as suggested by JTI. Cigarettes are proven to be harmful to health while vape products have been proven to be less harmful than smoking and able to help smokers quit smoking.”
At the end of the day, the coalition urged the Government to organise a consultation session with its members before reaching a decision on vape regulations and vape taxation. – Aug 5, 2021
