TobaccoReporter logo

Tag: Malaysia

  • Ispire Announces Huge Malaysian Expansion

    Ispire Announces Huge Malaysian Expansion

    Ispire Technology Inc. announced that it has received the interim license from the Malaysian Government for the manufacturing of nicotine products. The company said, “This is the first and only nicotine manufacturing license issued in Malaysia approved by both the Federal and State authorities and cements Ispire’s position as the only company with full authorization for export, import, and production.” The approval of the interim license also allows the company to begin manufacturing nicotine products in Malaysia immediately, as well as officially begin marketing its nicotine manufacturing capabilities externally.

    “Receiving the interim license for our Malaysian manufacturing operations is a significant milestone for Ispire as we progress towards positioning the company as a leading international provider of vaping hardware,” said Michael Wang, co-Chief Executive Officer of Ispire. “We can now officially begin manufacturing and marketing our nicotine products in Malaysia, with our Malaysian facility soon featuring 80 production lines, growing its capacity from the current six lines. Once the final license is approved in the coming months as we anticipate, our regulatory requirements in Malaysia will be complete and Ispire will have the first federal nicotine manufacturing license in the country. By diversifying our production base, we are strategically de-risking our production strategy and mitigating the concern of geopolitical factors increasing our pricing.”

  • Malaysian State Gets Aggressive with Ads as it Eyes Vape Regs

    Malaysian State Gets Aggressive with Ads as it Eyes Vape Regs

    All local authorities in Selangor, Malaysia, have been instructed to immediately seize and confiscate advertisements related to e-cigarette products in the state, The Star reported. State public health and environment committee chairman Jamaliah Jamaluddin said the decision was made during a coordination meeting on May 16 to discuss the proposal of banning the sale of e-cigarettes.

    “This action is in line with the provisions of the Control of Tobacco Product for Public Health Act 2023 (Act 852), which explicitly prohibits any form of advertising, promotion, and sponsorship related to electronic smoking products,” she said in a statement today (May 20).

    Jamaliah said the meeting also examined various issues related to the use and sale of e-cigarettes, including enforcement challenges, licensing, legal aspects, and monitoring.

    “The issue of online sales was also discussed, as it is difficult to control and is often the main channel for teenagers to obtain these products,” she said. “According to the National Health and Morbidity Survey 2022 report, it is estimated that nearly 14.9% of male teenagers aged 13 to 17 in Malaysia use electronic cigarettes. This statistic is very worrying and calls for urgent proactive action at the state level.”

    Following this, she said the state government, through the Public Health Standing Committee, will hold a follow-up meeting soon to discuss policy options that should be considered before the final proposal is presented at the state executive council meeting for a decision.

  • Malaysia Wants Vape Ban at State Level, Not Federal 

    Malaysia Wants Vape Ban at State Level, Not Federal 

    The Health Minister for Malaysia said even though the government is not working toward banning vape products on the federal level, it hopes the trend to ban them will continue at the state level as local officials stop issuing licenses to retailers selling vapes and e-cigarettes. 

    “We hope more will take the position of not issuing licenses to vape premises,” Health Minister Datuk Seri Dr Dzulkefly Ahmad said. “Otherwise, any licenses issued must strictly comply with the Control of Smoking Products for Public Health Act 2024.”

    On April 24, Terengganu announced it would ban vape products beginning August 1, and then three days later Kedah said it was considering doing the same. Previously, both Johor and Kelantan banned vapor products in 2016.

    When asked if a national ban was being considered, Dzulkefly said the federal government adopted a regulatory enforcement model following the passage of the Act.

    “We took a firm position to regulate tobacco-related products. That is the stance and position of the federal government,” he said. “At the same time, we support state governments that have the authority not to issue vape sales licenses. So let us work together.”

  • BAT’s Vuse Out of Malaysia by Q3 2025

    BAT’s Vuse Out of Malaysia by Q3 2025

    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. 

  • CAPHRA Urges Malaysia to Reject Vape Bans 

    CAPHRA Urges Malaysia to Reject Vape Bans 

    The Coalition of Asia Pacific Tobacco Harm Reduction Advocates (CAPHRA) today (April 28) urged Malaysian authorities to reject “counterproductive bans” on vaping and adopt risk-proportionate regulations, citing the World Health Organization’s (WHO) persistent neglect of harm reduction strategies as a key driver of preventable smoking-related deaths. 

    The call comes as Malaysia faces pressure to tighten vaping controls under the Control of Smoking Products for Public Health Act 2024 (Act 852), with state-level bans and stricter nicotine limits threatening progress. CAPHRA warns that such measures risk replicating failed prohibitions in Bhutan and South Africa, where bans fuel illicit markets and health risks. 

    “Enforcing stricter controls on high-risk products over safer alternatives is better than outright bans,” Universiti Kebangsaan Malasia professor Dr. Sharifa Ezat Wan Puteh said. “Malaysia must differentiate between combustible cigarettes and harm reduction tools.” 

    CAPHRA criticized the WHO, saying it ignores vaping’s role in smoking cessation. Despite Malaysia’s illicit tobacco trade dominating 55.3% of the market in 2023, WHO projects smoking rates will rise to 30% by 2025, contrasting sharply with Sweden’s 5% rate achieved through harm reduction. 

    “We firmly believe that an outright ban on vape products is counterproductive and could lead to unintended consequences, including the proliferation of black market activities,” Samsul Arrifin Kamal of MOVE Malaysia said. “The solution lies in implementing stricter controls, risk-proportionate regulations, and robust enforcement mechanisms. By establishing clear guidelines for the production, sale, and use of vape products, we can ensure consumer safety.” 

  • Young Asians Moving from Cigarettes to Vape

    Young Asians Moving from Cigarettes to Vape

    Young people in Southeast Asia are moving from smoking cigarettes to vaping and heated tobacco products (HTPs) instead, a survey of consumer research and data analytics from Milieu Insight said. It surveyed more than 18,000 legal-age adults across Singapore, Malaysia, Vietnam, the Philippines, and Indonesia, studying their consumption trends, flavor preferences, purchase channels, reasons for use, and future adoption.

    “The study shows some key factors influencing this trend,” said Gerald Ang, Milieu Insight’s chief operating officer. “One key factor is the variety of flavor, with fruit and menthol flavor dominating consumer choice in alternative nicotine products.

    “E-cigarettes and heated tobacco products being ‘cheaper’ is also an important reason for using alternative nicotine products.”

    Even though Singapore has banned the use of alternative nicotine products, they are still prevalent among people aged 21 to 29, the survey found, with 7.8% in that age group use vapes and HTPs, while 5.7% smoke cigarettes. The study also found that in Singapore, 43% bought these products from online shopping and messaging platforms, 29% bought the alternative nicotine products from friends and family, and 19% bought them on social media platforms.

    Ang said the study shows that e-cigarette and HTP use in the region is expected to grow, as a sizeable portion of smokers indicated that they were likely to use alternative nicotine products in the next six months.

    In Vietnam, which has also banned these alternative nicotine products, 9.2% of people in the 25 to 34 age bracket are vaping. And in Malaysia, 14.8% of young people between 20 and 29 are using e-cigarettes and HTPs.

  • Malaysia: Could Kenaf Replace Tobacco?  

    Malaysia: Could Kenaf Replace Tobacco?  

    Anti-tobacco advocate Datuk K. Koris Atan is urging the Malaysian government to help the smoking rate in the country by getting tobacco farmers to switch to growing kenaf instead. Kenaf is a hibiscus, related to cotton and okra, used for a variety of purposes including paper pulp, textiles, and wood-based products. Koris argues that if tobacco becomes scarcer, the supply of cigarettes would dwindle, and thus smoking would decrease.

    Kenaf was first introduced as a commercial crop in 1998, and Datuk Wan Abdul Rahim Wan Abdullah, chairman of the National Kenaf and Tobacco Board says it has great potential but just hasn’t been given the attention it needs. That it thrives in hot, dry climates makes it easy to grow, according to Rahim Wan, and offers potential earnings of RM 5,000 ($1,100) per hectare per season.

    Wan Abdul Rahim said that kenaf can also be grown as a supplement to major plantations and farming such as rubber, oil palm, and padi. “It has gained global attention as a cost-effective plant,” he said.

  • Malaysian Officials Preparing Retailers for April 1 Ban 

    Malaysian Officials Preparing Retailers for April 1 Ban 

    Beginning April 1, Malaysian retailers will not be able to display tobacco products in open displays, but instead must keep them hidden from view in closed cabinets. Act 832, the Smoking Products Control Act for Public Health 2024, covers regulations on the registration, sale, packaging, labeling, and use of tobacco products in public places, as well as the display of them in retail outlets. The Act became law Oct. 1, 2024, but retailers were given a grace period which ends in April.

    Officials from Kuala Lumpur, Penang, and Selangor have been communicating with retailers about the upcoming change in enforcement.

    “Since Act 852 came into effect, the Health Department has visited retail shops selling cigarettes and tobacco products,” said Kuala Lumpur mayor Datuk Seri Maimunah Mohd Sharif. “They have provided explanations and announcements to the sellers, such as at convenience stores.”

    Penang health committee chairman Daniel Gooi Zi Sen said the state Health Department will monitor stalls to ensure they don’t display smoking products at retail outlets.

    “Individuals can be fined from RM500 up to RM30,000 ($112 to $6,750), while organizations may be slapped with up to RM300,000 ($67,500) in fines, or jailed,” he said. “Retailers can only use designated signboards to show the availability of cigarette or vaping products and the prices. Certain specialized stores are allowed to display smoking products, but must prominently feature warning signs.”

  • JTI in no Hurry to Launch Vape in Malaysia

    JTI in no Hurry to Launch Vape in Malaysia

    Malaysia’s Control of Smoking Products for Public Health Act 2024 has been implemented in stages since it was first launched in October of last year, dictating what can and cannot be done around the sale and use of tobacco and nicotine products. The next stage will be implemented in April when the display of all tobacco and vape products will be banned at retail shops.

    Speaking at a conference this week, JT International’s (JTI Malaysia) managing director, Juliana Mohd Yahaya, was asked if JTI would be introducing Logic, the company’s featured vape device, to the Malaysian market soon.

    “We are not in a hurry,” she said. “If you look at Malaysia’s vaping industry right now, it is not [fully] regulated yet. What we do not want is [for our vape products] to appeal to minors.

    “Once all of the regulations are in place and [the industry is] brought under control, that’s where we will consider that [launching vape products in Malaysia]. We are a responsible company, and we do not want to be selling our vape products to anyone under 18.”

    Until then, Juliana said JTI is more than happy to focus its efforts on promoting Ploom, its heated tobacco product (HTP), that was launched in Malaysia in January.

     “[Ploom has] performed better than what we expected, I guess, also thanks to the fact that HTPs are not a new category,” she said. “If you look at the industry so far, there has been only one choice [Philip Morris’ IQOS]. But now, we have another alternative that we can give the consumers.”

  • Malaysia’s Illicit Tobacco Trade Down, But Evolving 

    Malaysia’s Illicit Tobacco Trade Down, But Evolving 

    Officials in Malaysia announced that 55% of the cigarettes being purchased are illegal, a decline for the fourth consecutive year since 2020’s peak of 63.8%. JT International Bhd (JTI Malaysia) managing director Juliana Mohd Yahaya said law enforcement efforts in curbing illegal tobacco smuggling and a ban on trans-shipments of tobacco products are helping the cause.

    “We expect the incidence of illicit cigarettes to continue to decline this year,” she said at a news conference discussing the nation’s annual Illicit Cigarettes Study for 2024. “What has also contributed to the reduction in illicit cigarette incidence is the ongoing tobacco tax moratorium by the Ministry of Finance. But we know that at some point, [the moratorium] will end, so if the government were to impose an excise increase on tobacco products, we hope that it would be a moderate and predictable one.”

    Another finding from the study was that an ever-increasing number, 13.8%, of illicit cigarettes bore fake tax stamps, leading companies like JTI Malaysia to advocate for the government’s transition from paper-based tax stamps to digital tax codes, aligning with the government’s digitalization drive.

    Malaysia’s nicotine makeup consists of consumers using 23.8% legal cigarettes, 29.9% illicit cigarettes, 25.3% e-cigarettes/vapes/HTPs, and 20.4% of users who use both traditional and alternative products.