Today (April 28), British American Tobacco Malaysia Bhd said it will phase out its vapor products from the Malaysian market by the third quarter of 2025 to comply with the new Control of Smoking Products for Public Health Act 2024 (Act 852).
“In order to comply with the new regulatory requirements for vapor products as set out in Act 852 and its regulations that will take effect on Oct 1, 2025, the company will be transitioning out its current range of Vuse products in the third quarter of 2025,” BAT Malaysia said in a filing.
The company said the transition will undertake commercial assessments of Vuse products while adhering to the new regulations, with a continued focus on “delivering combustible value growth.” BAT Malaysia expects that the exit will have a minimal impact on its financial performance for the financial year ending Dec 31, 2025. Vuse, the No. 1 global vaping brand by market share, is currently the only vapor product sold by BAT Malaysia.
Last week, Health Minister Datuk Seri Dr Dzulkefly Ahmad said the government will intensify enforcement and regulation of electronic cigarettes and vape products under Act 852. Act 852, which first came into effect in October of last year, specifically targets individuals under the age of 18, who are prohibited from purchasing or using any smoking products, including e-cigarettes and vape devices, in Malaysia.
In FY2024, BAT Malaysia’s gross profit margin slipped 1.2 percentage points to 23.4% or RM541 million ($124.4 million), from RM568 million ($130.6 million) in FY2023, largely due to lower margins from vapor products.
