Tag: Malaysia

Malaysia Poised to Legalize E-Cigarettes

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Malaysia’s longtime ban on the sale of vaping products is set to end, according to the Malaysian Organization of Vape Entities (MOVE).
Taking effect on Aug. 3, the regulation of vaping devices precedes the imminent legalization of vape sales. It follows years of campaigning by MOVE and other tobacco harm reduction supporters.
The Malaysian government has now moved to gazette the Trade Descriptions (Certification and Marking) of Electronic Cigarette Devices Order 2022 under the Trade Descriptions Act 2011. Manufacturers and importers will need to ensure all devices are certified and labeled to show consumers that safety standards have been met and the products are safe to use. All e-liquids will need to be registered.
“This is historic news after a long-fought battle. It paves the way for a legalized market and safer products. Regulating vaping products, restricting sales to adults and applying significant penalties to any breaches will help many more Malaysian smokers to quit deadly cigarettes,” said Samsul Kamal Ariffin, president of MOVE.
Ariffin said that in recent months there have been frustrating parliamentary delays in progressing the Tobacco and Smoking Control Bill—not helped by the pending general election. However, with the safety standards now gazetted, it sets in train the legalization of vape sales.

Regulating, not banning, vaping will not only save smokers lives, [but] it will generate much-needed tax revenue for our country.
Samsul Kamal Ariffin, president, MOVE
“Regulating, not banning, vaping will not only save smokers lives, [but] it will generate much-needed tax revenue for our country, which is desperately needed post-pandemic,” said Ariffin. “This is not only good news for smokers and their loved ones, but every Malaysian will benefit from the extra revenue gained from vape manufacturing, importing and sales. Up until now, it has been a black market with unapproved products not contributing tax and with no safety assurances.”
“The government has done well in preparing the legislation and regulation of products deemed 95 percent less harmful than combustible tobacco. It fully understands that making safer nicotine products legally accessible is the only way to seriously reduce Malaysia’s unnecessarily high smoking rates,” said Ariffin.
The Coalition of Asia Pacific Tobacco Harm Reduction Advocates (CAPHRA), too, expects Malaysia’s smoking rates to decline after the legalization of vapor products. “Malaysia will join 67 other progressive countries worldwide which have adopted regulatory frameworks on safer nicotine products. Importantly, all of them have subsequently registered a dramatic decline in smoking,” said Nancy Loucas, executive coordinator of CAPHRA.
“We’re particularly proud of our member organization MOVE and Samsul’s tireless advocacy over many years. The third of August is worthy of a big celebration and will be well noted across the Asia-Pacific region. Vaping bans fail badly—as Australia is discovering the hard way,” said Loucas.
April 11, 2022
Malaysia: Illicit Cigarette Prevalence Drops

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Illicit cigarette prevalence in Malaysia has dropped by 6.5 percentage points from 63.8 percent in 2020, according to Nielsen’s Illicit Cigarettes Study in Malaysia 2021, reports The New Straits Times.
This is the first time since 2014 that illicit cigarette prevalence has registered a decline.
“This indicates that the measures announced by the finance minister in Budget 2021 are starting to bear results,” said a Confederation of Malaysian Tobacco Manufacturers (CMTM) spokesperson. “This is an encouraging development, and CMTM urges the government and all stakeholders to continue all efforts to curb the illicit cigarette trade.”
Malaysia is the number one country for illegal cigarettes, even with the decline. Smuggling syndicates are reacting to Budget 2021 measures by using new methods to illegally import cigarettes into the country.
March 11, 2022
Malaysians Skeptical About Generational Tobacco Ban

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Malaysians are skeptical about the effectiveness of a plan to prohibit the sale of tobacco and vapor products to those born after 2005, according to a survey by the Retail and Trade Brand Advocacy (RTBA) Malaysia Chapter that was relayed the New Straits Times.
In January, Malaysia’s health minister, Khairy Jamaluddin, said he wanted to ban smoking for the next generation of Malaysians, following the example of New Zealand, which announced a similar policy in December.
Eighty-five percent of respondents to the RTBA survey said the ban would not work and would create a black market for cigarettes and vape products. They also said that the ban would be difficult to enforce and ultimately impact Malaysia’s legal and local businesses.
“Banning is not a solution,” said RTBA Malaysia managing director Fazli Nordin. “For example, vape products containing nicotine are currently prohibited from being sold in the market. Yet there is consumer demand for vape products containing nicotine. Worst still is the tobacco black market, where Malaysia has the highest level of illegal cigarettes in the world, driven by the huge price gap between legal and illegal products.”
Nearly 1,200 Malaysians participated in the survey by RTBA Malaysia, which is a non-governmental organization that safeguards businesses from criminal conduct.
While Malaysia’s plans were inspired by New Zealand’s, they differ in that New Zealand does not plan a ban on vapor products, according to Fazli.
“Instead, the country promotes vape as a less harmful alternative and encourages New Zealanders to make the switch from traditional cigarettes,” he said.
A recent study revealed that encouraging smokers to switch to vape as a less harmful alternative would help Malaysia reduce the smoking population to 4 million by 2025.
The report estimated that such a strategy would help the country to reduce its spending on treating smoking-related diseases by MYR1.3 billion ($310.21 million) in 2025.

February 13, 2022
Malaysia Mulls Age-Based Tobacco Ban

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Malaysian Health Minister Khairy Jamaluddin wants to ban smoking for the next generation of Malaysians, according to reports by Lowyat and Code Blue. The plan comes in the wake of New Zealand’s announcement that it would prohibit the sale of cigarettes to anyone born after 2008.
Jamaluddin plans to table a new Tobacco and Smoking Control Act at the upcoming Parliament meeting from Feb. 28 to March 24, which will replace the current tobacco product control legislation under the Food Act 1983.
The bill will also regulate e-cigarettes and vape products, according to Jamaluddin, who called the bill a “generation endgame.”
“For too long, our healthcare system has been burdened with healthcare issues resulting from smoking,” said Jamaluddin. “This allocation will enable smoking to be phased out in stages until one day in [the] future, Malaysia will be a smoke-free country.”
A date for the proposed legislation has not been specified nor has a cutoff year of birth for the cohort smoking ban.
January 19, 2022
Malaysia Postpones E-Liquid Tax

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The government of Malaysia has postponed implementation of a new tax on e-liquids following complaints from vapor companies and consumers, according to The Malaysia Reserve.
The proposal called for a duty of MYR1.20 ($0.29) per ml of vape liquid or gel, which could have more than doubled the retail prices of bottles for open-systems.
“We are not surprised by this deferment, considering the blowback from vape industry players and consumers over the high duty rate,” said CGS-CIMB Securities analyst Kamarul Anwar.
Vapor companies said the tax would make e-cigarettes more expensive than tobacco cigarettes and force the industry to compete with much-less expensive black market products.
“The tax rates implemented should be made with proportional risks of the product benefits to the hardcore smoking community,” Malaysian Vape Industry Advocacy President Rizani Zakaria told The New Straits Times in October.
The proposal also ran into opposition from medical groups. “The taxation levels for tobacco harm reduction products in Malaysia must remain risk-proportionate, benchmarked against high-risk products such as cigarettes,” Federation of Private Medical Practitioners Associations Malaysia president Steven Chow said in a statement last November.
Malaysia currently prohibits nicotine sales for non-medical purposes. Earlier this year, Health Minister Khairy Jamaluddin informed the World Health Organization that the country would legalize and regulate vaping products to prevent youth access.
January 7, 2022
Group Calls for Risk-Proportionate Rules

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The Malaysian Vape Chamber of Commerce (MVCC) has urged to government to introduce risk-proportionate taxes and regulations for e-cigarettes and combustible cigarettes, reports The New Straits Times.
Recently, the government of Malaysia announced a 200 percent tax hike for vape products, to be implemented at MYR1.20 per ml for nicotine e-liquids and non-nicotine e-liquids.
Industry players feel that the taxation rate is too high and will negatively impact the industry. They are likely to pass on the cost to consumers.
“Manufacturers have no choice but to increase the price of their products as the tax rate imposed is equivalent to the current retail price of vape products,” said MVCC Head of Information Ashraf Rozali. “For example, each 30ml bottle of e-liquid will be taxed at MYR36.”
“With this rate, the estimated retail price of vape e-liquids will reach twice the current price per 30ml bottle. Therefore, the new tax rate will not only affect one party but will impact the entire ecosystem, including adding burden on consumers,” Ashraf said.
At the same time, the government has also announced recently that a regulatory framework for tobacco and vape products will be tabled next year.
Any regulations introduced must include elements that can encourage smokers to switch to less harmful products such as e-cigarettes, said Ashraf. He called on the public to sign a petition calling for risk proportionate regulation.
December 20, 2021
Malaysia Plans Excise for Vapor Products

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The government of Malaysia plans to introduce excise duties on all vapor products containing nicotine, reports Malay Mail.
Without revealing the height of the intended taxes, Finance Minister Tengku Zafrul Abdul Aziz said the move was to promote a healthier lifestyle among Malaysians.
British American Tobacco managing director Nedal Salem commended the plan, saying it was a right move towards tobacco harm reduction in Malaysia.
“Regulation will not only allow vape users access to reduced-risk alternatives to smoking, but also ensure the products used are compliant to quality and safety standards,” Salem wrote in a statement.
However, he warned the government that any new tax framework must be carefully crafted to ensure it does not drive consumers toward cheaper, less-regulated alternatives.
“If not, the mistakes of high tobacco excise rates will be repeated where currently the government loses MYR5 billion (1.2 billion) annually,” Salem wrote.
November 1, 2021
Nedal Salem to Lead BAT Malaysia

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BAT Malaysia has named Nedal Salem as its new managing director, reports The Star.
The appointment follows the resignation of Jonathan Reed, who will take up the role of group head of combustibles with BAT PLC from Sept. 1, 2021.
“On behalf of the board, we thank Jonathan for his visionary leadership and accomplishments during his tenure as [managing director],” said BAT Malaysia chairman Tan Sri Aseh Che Mat. “We have seen a remarkable business turnaround under his leadership and wish Jonathan the very best in his next appointment.”
Salem is currently the managing director and CEO of Ceylon Tobacco Co. in Sri Lanka.
August 19, 2021
Malaysians Quitting Cigarettes with Vaping

Infographic: Green Zebras
Eighty-eight percent of Malaysian vapers successfully quit smoking cigarettes due to their vape products, reports the New Straits Times, citing a survey commissioned by the Malaysian Vape Industry Advocacy (MVIA).
Conducted by the Green Zebras market research firm, the survey also reported that 79 percent who are dual users (users of both vapor products and cigarettes) have reduced the number of cigarettes they smoke since they began vaping.
MVIA President Rizani Zakaria noted that the survey’s results clearly show that vaping can be an effective tool to help smokers quit cigarette smoking and is a much less harmful alternative.
“There is a real need for the Malaysian government to recognize the benefits of vaping, especially the potential that it has to help smokers to quit cigarette smoking by switching to a less harmful product,” he said.
There is a real need for the Malaysian government to recognize the benefits of vaping.
Rizani Zakaria, president, MVIA
“As it stands, the vape products are still unregulated, and we believe it is time for the government to look into introducing regulations on the products and adopt policies that would encourage smokers to switch to vaping that is less harmful.”
April 9, 2021
Malaysia Announces New Duties

Malaysia will implement an excise duty at an ad valorem rate of 10 percent on all types of vapor and e-cigarette products, reports The Star. Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz says the tax includes all types of electronic and non-electronic cigarette devices, including e-liquids.
Electronic cigarettes liquid too will be subjected to an excise duty at a rate of MYR0.40 sen [$0.10] per milliliter. The tax takes effect on Jan. 1, 2021.
Tengku Zafrul said taxes would be imposed on cigarettes and tobacco products on all duty-free islands and any free zones that have been permitted retail sales of duty-free cigarettes. He added that the issuance of new cigarette import licenses would also be frozen.
He said that the transhipment of cigarettes activities to selected ports would also be limited.
“We will impose taxes on drawbacks on all imported cigarettes for the purpose of transhipment and re-exports,” he said, adding that transhipment activities and re-exports of cigarettes using pump boats would also not be allowed.
November 9, 2020