PRESS RELEASE
KUALA LUMPUR, 26 September 2025 – Datametrics Research and Information Sdn Bhd (DARE), a Malaysian-based policy think tank, has warned that proposals for state-level or nationwide vape bans will lead to a rise in the illicit market, erode investor confidence, and deprive the government of valuable tax revenue and result in job losses as well.
DARE’s response follows the latest survey released by the Malaysian Vapers Alliance (MVA), which revealed strong consumer opposition to bans. The survey found that 74% of respondents fear bans would drive illegal sales, while 80% worry about unsafe, unregulated products, confirming the real economic risks of prohibitionist measures.
Pankaj Kumar, Managing Director of DARE, said, “Prohibition has never worked as a policy tool, be it for alcohol, tobacco, and now on vape products. What it does is fuel the illicit market by providing a compliance loophole. This, in turn, is costing the government billions in lost revenue, shrinking legitimate businesses, and destroying jobs. The key lies in enforcement of the law and not banning products that are swamped with counterfeits”.
DARE highlighted that Malaysia’s vape industry was once valued at RM3.48 billion and supported over 31,500 jobs, but regulatory changes have led to a drastic shrinkage of the vape market. According to the Ministry of Health (MoH) data, registered brands have fallen from 3,200 to just 390 in less than a year since Act 852 (Control of Smoking Products for Public Health Act 2024) came into force.
“This sharp contraction is not due to lack of demand. Malaysians continue to consume vape products. However, the differing federal and state laws have created a regulatory loophole allowing the existence and further expansion of the illicit nicotine market. Consumers are simply being pushed into the illegal market, where products are untaxed, unregulated, and unsafe. That is a direct economic loss to Malaysia,” Pankaj added.
DARE noted that Act 852 already provides a national regulatory framework with strict safeguards for minors. The most economically rational path forward, it stressed, is consistent enforcement of Act 852 rather than bans that fuel the illegal market.
“Every RM1 spent in the black market is RM1 lost to legitimate Malaysian businesses and the government. Bans will only magnify this leakage. What the economy needs is regulatory certainty and enforcement, not prohibition,” Pankaj concluded.
About Datametrics Research and Information Sdn Bhd
Datametrics Research and Information Sdn Bhd (DARE) is a Malaysian-based Think Tank or Policy Institute committed to performing research and advocacy for key sectors that are critical to the Malaysian economy.
Established in 2021, DARE endeavours to undertake research, analysis, and policy recommendations that are independent, bold, impactful, and actionable. The team comprises experts from diverse backgrounds, all with a common purpose of advocating the improvement of public policy for sustainable nation-building. For more information on DARE please visit www.daresearch.com.my
