Policy think tank Datametrics Research and Information Sdn Bhd (DARE) cautioned that state or nationwide vape bans in Malaysia could backfire by boosting the illicit market, undermining investor confidence, and costing the government tax revenue and jobs.
The warning follows a survey by the Malaysian Vapers Alliance showing 74% of consumers fear bans will drive illegal sales, while 80% worry about unsafe, unregulated products. DARE Managing Director Pankaj Kumar said prohibition “has never worked” and argued that enforcement of existing law under Act 852 is a more effective solution.
Malaysia’s vape market, once worth RM3.48 billion ($835 million) and supporting 31,500 jobs, has sharply contracted since new regulations took effect, with registered brands plunging from 3,200 to 390. DARE stressed that demand remains strong, but inconsistent state and federal policies are pushing consumers to untaxed and unsafe products.
