The local vape industry has warned that Malaysia risks losing more than RM600 million in annual tax revenue if 15ml vape products are abruptly removed under the implementation of the Control of Smoking Products for Public Health Act 2024 (Act 852).
President of the Malaysian E-Vaporizers and Alternative Tobacco Association, Mohamad Nizam Talib, said such a move would not only affect government revenue but also impact thousands of jobs within the industry.
He said industry players have already made significant investments since Act 852 was introduced, including product registration with the Ministry of Health (MOH), SIRIM certification, excise duty payments, local manufacturing development and compliance with safety and labelling standards.
“The industry has complied with the law and invested heavily to ensure products meet government standards. However, there are now proposals to eliminate the 15ml product category without a reasonable transition period,” he said in a statement on Friday.
He added that based on current estimates, there are about 1.5 million vape users in Malaysia, with around 70% using bottled vape systems.
He said the average consumption is about eight bottles per month, and with an excise tax of RM6 per 15ml bottle, the government is estimated to collect around RM50 million per month or more than RM600 million annually from this product category alone.
He also claimed that the sudden removal of 15ml products could increase smuggling activities and the black market, leading to uncontrolled and untaxed products entering the country.
“Consumer demand still exists. If legal products are removed, users will shift to the black market and smuggled products that are completely outside regulatory control,” he said.
The industry also raised concerns that enforcement of Act 852 remains unstable, with online sales and unregistered products still easily accessible in the market.
In addition, they claimed that misuse of vape products containing prohibited substances, including synthetic drugs, is currently more associated with illegal markets and unregulated underground products rather than the legal industry.
