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Tag: Malaysia

  • Malaysian Raid Seizes $2.7M in Illicit Vapes

    Malaysian Raid Seizes $2.7M in Illicit Vapes

    Malaysia’s Customs Department detailed the seizure of more than RM13 million ($2.7 million) worth of illicit vape devices and liquids during an October raid on a storage warehouse in Padang Besar. Officers discovered 719,250 units, including over 211,000 devices and 508,000 liquids, all of which were believed to be undeclared and lacked the required Health Ministry import permits.

    The products, imported from China, had arrived via Kuala Lumpur International Airport before being transported to Perlis. A man in his 40s is under investigation, and authorities are probing whether the stock was intended for domestic sale or re-export.

  • Selangor Drafting Policy to Regulate Vape

    Selangor Drafting Policy to Regulate Vape

    The Malaysian state of Selangor is drafting a policy paper that could lead to a gradual ban on electronic cigarette use, according to state public health and environment committee chairman Jamaliah Jamaluddin. She said the policy will align with the Tobacco Product Control Act for Public Health 2023 (Act 852) and take into account market realities, public health impacts, and enforcement needs. The announcement was made during the Selangor state assembly sitting in Shah Alam in response to a query about prohibiting vapes.

    Jamaliah said the state government has already begun engagement sessions with stakeholders, including the Selangor State Health Department and local authorities, to discuss implementation. Initial steps include removing vape-related advertisements and promotional signage at retail outlets across the state. She emphasized that enforcement will be strengthened through cooperation between state agencies, local authorities, and federal bodies.

    The state also plans to expand awareness campaigns targeting youths, highlighting the risks and harmful health effects of vaping. Advocacy programs will involve secondary schools and universities through carnivals, talks, and interactive sessions. Health clinics will be equipped with support hotlines and nicotine addiction screening services to assist individuals seeking to quit vaping.

  • BAT Malaysia Adjusts Prices, Eyes Market Stability

    BAT Malaysia Adjusts Prices, Eyes Market Stability

    British American Tobacco (Malaysia) Bhd announced new cigarette prices ranging from RM12.40 to RM18.40 per pack, effective November 21, following the government’s Budget 2026 excise duty increase. The move, approved by the Ministry of Health, marks the first excise adjustment in a decade and comes at a critical time for the company’s market positioning.

    BAT Malaysia managing director Nedal Salem said the moderate increase was a “step in the right direction” given Malaysia’s economic environment, but warned that steep hikes in the past have fueled the tobacco black market, which now accounts for 54% of total cigarette consumption. With illicit trade eroding legitimate sales, BAT Malaysia’s ability to maintain market share hinges on balancing affordability with regulatory compliance.

    Industry analysts note that while higher prices could pressure consumer demand, BAT Malaysia stands to benefit from stronger enforcement against contraband. Government crackdowns saved RM15.5 billion ($3.7 billion) in lost revenue over the past two years, and a new RM700 million ($168 million) allocation for enforcement in 2026 is expected to further curb illegal trade. Salem emphasized that BAT Malaysia fully supports these initiatives, positioning the company to protect its sales base and stabilize market share despite the excise-driven price adjustment.

  • Malaysian Teens Recruited by Syndicate to Sell Vapes

    Malaysian Teens Recruited by Syndicate to Sell Vapes

    Authorities and parents in Malaysia are being warned about unscrupulous syndicates recruiting teenagers to sell vapes at schools for lucrative commissions, reported China Press. Students are allegedly being hired as “runners,” and then encouraged to get their peers addicted so they can sell them devices. One independent Chinese school reportedly took action against a student caught selling vapes on campus, and staff “members were shocked when a syndicate member boldly called the school board pleading for leniency on behalf of the student.” Educational sources urged parents to monitor their children closely.

  • Experts Urge Malaysia to Embrace THR

    Experts Urge Malaysia to Embrace THR

    Malaysia continues to struggle with smoking, according to Dr. Arifin Fii, president of the Advanced Centre for Addiction Treatment Advocacy (ACATA), with roughly 20% of adults (4 million people) still smoking despite strict laws and high taxes. He argues that embracing tobacco harm reduction (THR) through vaping and other non-combusted nicotine products could accelerate progress toward a smoke-free nation.

    Drawing lessons from Sweden, where THR strategies helped reduce smoking rates to between 5.6% and 8%, Fii said countries that restrict vaping, such as Ireland, the Netherlands, and Denmark, have seen little improvement. Evidence shows vaping is at least 95% less harmful than smoking and can serve as a transition tool for smokers, he said.

    Fii criticized Malaysia’s current approach, which treats all nicotine products as equally harmful, arguing that risk-proportionate regulation could reduce smoking prevalence while protecting youth. He called for clear frameworks, stricter enforcement of underage access, and policies grounded in science rather than prohibition. By adopting evidence-based harm reduction, Fii said Malaysia could follow Sweden and the UK in reducing smoking-related deaths, healthcare costs, and tobacco-related harm while giving smokers safer alternatives.

  • ASEAN Could Lose $11B to Illicit Tobacco Trade by 2028

    ASEAN Could Lose $11B to Illicit Tobacco Trade by 2028

    A policy brief by the Center for Market Education (CME) warns that Southeast Asian governments may lose more than $11 billion to illicit tobacco trade by 2028, averaging $3.7 billion annually.

    Key national losses include:

    • Malaysia: $770 million/year, nearly matching projected petrol subsidy savings.
    • Philippines: $440 million/year, exceeding its $370 million disaster preparedness fund.
    • Thailand: $560 million/year, with illicit products making up 28% of the market.
    • Indonesia: $5 billion lost across three years, with illicit trade above 10% of the market.

    CME notes these figures are conservative due to underreporting and uneven enforcement. CEO Dr. Carmelo Ferlito called for stronger cross-border collaboration, policy alignment, and transparency to reclaim lost revenue. Hayley van Loon, CEO of Crime Stoppers International, highlighted the link between illicit tobacco and organized crime, including narcotics, human trafficking, and counterfeit goods.

  • Singapore Busts Major Vape Smuggling Syndicate Linked to Malaysia

    Singapore Busts Major Vape Smuggling Syndicate Linked to Malaysia

    Singapore authorities announced the dismantling of a large-scale vape smuggling syndicate operating between Malaysia and Singapore, arresting 12 suspects and seizing over 64,000 vaping devices worth nearly RM2 million ($460,000). The suspects—11 men and one woman aged 25 to 35—were detained on October 16 during a joint operation led by the Singapore Police Force with support from the Criminal Investigation Department, Police Intelligence Department, and Special Operations Command.

    Police said the syndicate was responsible for importing and distributing vapes to local buyers. The arrests took place at a car park where the group was allegedly distributing devices. Follow-up raids uncovered two storage facilities containing the illegal goods, alongside cash, multiple mobile devices, and eight vehicles used in the smuggling operation.

    All 12 suspects were charged in court for offenses under Singapore’s Tobacco (Control of Advertisements and Sale) Act 1993, which prohibits the import, sale, and distribution of vapes. Four face conspiracy charges, while eight are charged with possession for sale. Offenders can be fined up to S$10,000 ($2,300) or jailed for six months for a first offense, with harsher penalties for repeat violations.

  • JTI Malaysia Backs Phased Tobacco Excise Hike, Stresses Illicit Concerns

    JTI Malaysia Backs Phased Tobacco Excise Hike, Stresses Illicit Concerns

    JTI Malaysia voiced support for the government’s phased tobacco excise increases for budget 2026, starting November 1, describing the approach as balanced for revenue stability and enforcement continuity. The company emphasized that illicit cigarettes remain a major concern, urging continued coordination between the Ministry of Finance, Royal Malaysian Customs, and industry players to ensure tax adjustments are matched by strong border enforcement.

    JTI also expressed disappointment that vape products were excluded from excise measures, despite full regulatory parity under the 2024 Control of Smoking Products for Public Health Act.

  • Malaysian Health Ministry Proposes Vape Liquid Tax Increase

    Malaysian Health Ministry Proposes Vape Liquid Tax Increase

    The Malaysian Ministry of Health (MOH) has proposed an increase in excise duty on vape liquids ahead of the government’s plan to ban electronic cigarettes and vaping products completely. The excise tax would be set at MYR4 ($0.94) per mL, a tenfold increase, according to The Edge Malaysia.

    The proposal was submitted to the Ministry of Finance (MOF) for consideration, days before the 2026 budget is set to be tabled.

    “This is the ministry’s recommendation to the MOF for review and approval,” said Deputy Health Minister Lukanisman Awang Sauni during a question and answer session. The deputy minister explained that a standard pack of 20 cigarettes is equivalent to 200 puffs and taxed at MYR8 per pack, while 1 mL of vape liquid is equivalent to 100 puffs but taxed at 40 sen per milliliter (for nicotine and non-nicotine liquids). This means vapers pay significantly less tax per milligram of nicotine than cigarette smokers, he said.

    “Currently, one pack of cigarettes equals about 2 mL of vape liquid, but the tax on vape nicotine is only around 10% of cigarette tax. This disparity creates a large price gap,” said Datuk Wan Saifulruddin Wan Jan, who argued that the price gap encourages smokers to vape rather than quit altogether.

    The proposal is facing pushback from the industry, however.

    “A single-fold tax hike is already drastic in many ways. A tenfold is just sweeping the real issue under the rug,” said Ridhwan Rosli, Malaysian Vape Chamber of Commerce (MVCC) secretary-general. “It seems like they are changing their policy every year while the previous policy is just about to take place.”

    Ridhwan stated that the industry is proposing a maximum tax rate of 80 sen per milliliter.

    “As currently we are faced with a lot of new costs when it comes to going through the legal process of registration, etc., it is sad that the legal industry players are being punished for the wrongs of illicit products,” he said. There are worries that the drastic tax increase will increase illicit trade as well.

    Additionally, the government plans a full ban on e-cigarettes and vapor products.

    “The Health Ministry is now moving toward a full ban on e-cigarettes and vape products,” said Lukanisman. “The proposal will be tabled to the Cabinet this year for policy endorsement. The prohibition will be implemented in phases through enforcement, education, and community support.”

  • Vape Industry Slams Malaysia’s Proposed Ban, Points to Illegal Trade

    Vape Industry Slams Malaysia’s Proposed Ban, Points to Illegal Trade

    Malaysia’s vape industry has hit back at a proposed government ban, with the Malaysia Retail Electronic Cigarette Association (MRECA) warning it would wipe out years of investment and punish law-abiding businesses. “Why should there be a ban on vape products when those that have undergone [Ministry of Health’s] stringent approval process are already in the market?” asked MRECA president Datuk Adzwan Ab Manas, noting companies have spent millions on compliance, safety testing, and labelling.

    Adzwan said the real problem lies with unapproved products and criminal misuse, not licensed businesses. He urged enforcement agencies to intensify raids and penalties against illegal sellers, warning that a blanket ban would only fuel smuggling and expand the black market.

    MRECA members, who have upgraded facilities and testing systems at significant cost, fear massive job cuts and financial losses if prohibition goes ahead. “The solution is not prohibition,” Adzwan said. “The solution is cooperation, enforcement, and fairness. We must not undermine a regulated industry that has demonstrated its willingness to comply with the law and contribute responsibly to the economy.”