22/09/2025

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MONDAY | SEPT 22, 2025

Malaysia’s vape ban push draws sharp reactions

PETALING JAYA: Malaysia’s plan to phase out vapes, beginning with open-system devices, is sparking strong reactions from industry players who warn that a poorly managed ban could devastate businesses, cost thousands of jobs and expand the very black market the government seeks to curb. Health Minister Datuk Seri Dzulkefly Ahmad said last week the ministry is drafting a Cabinet memorandum to introduce the ban in stages. The move follows Act 852, the Control of Smoking Products for Public Health Act 2024, which came into force last October to regulate tobacco and vape products. While the Act set a regulatory framework covering advertising, packaging and sales restrictions, the government now intends to go further by outlawing vape devices altogether, starting with open system products. Industry stakeholders argue that the sudden shift creates regulatory uncertainty and undermines in vestor confidence. Datametrics Research and Information Centre managing director Pankaj Kumar said based on the latest available industry report, Malaysia’s vape market is valued at RM3.48 billion. According to the National Health and Morbidity Survey 2023, Malaysia has 1.2 million vape users, he noted. “Since Act 852 came into force, the market has been clouded by uncertainty. The real problem is the lack of clarity. While Act 852 provides a framework, ongoing talk of bans has left businesses unsure of how to plan for the future,” Pankaj told SunBiz . He added that potential tax Ű BY DEEPALAKSHMI MANICKAM sunbiz@thesundaily.com

is already biting. “For most, this is not a matter of adjusting business models. If the ban is enforced, their businesses will be wiped out entirely. Many have invested heavily in premises, staff and compliance and now face the prospect of closing their doors with no recourse,” Ridhwan said. Instead of pursuing prohibition, MVCC is calling for stricter enforce ment of existing laws. “Malaysia already has a com prehensive law in place – the Control of Smoking Products for Public Health Act 2024. Rather than introducing new bans, the priority should be to properly enforce this Act. If fully implemented, it is more than sufficient to address concerns without destroying a legal industry or driving consumers into the black market,” Ridhwan said. MVCC will continue to pursue constructive advocacy and, if nece ssary, legal review. “If the government proceeds with measures that have dispro portionate economic impact or are pro-cedurally rushed, we will consider legal options to ensure fair process and to protect members’ legitimate business interests,” Ridhwan added. For now, with Cabinet dis cussions pending, industry players remain in limbo, bracing for a decision that could reshape the country’s RM3.48 billion vape market and the livelihoods tied to it. Furthermore, the company has solid visibility, supported by an unbilled order book of RM1.34 billion and a tender pipeline of RM2.78 billion as of June 30. Its transformation strategy is driven by an ongoing shift towards be coming a full-fledged independent power producer with 27 ongoing SES projects across Southeast Asia. Executive deputy chairman and group managing director Datuk Lai Keng Onn said being featured in the Bursa Blitz Compendium reaffirms the company’s transformation and credibility with the investor com munity and the market. “The reclassification marks a measurable shift in our earnings profile, project pipeline, and long term growth trajectory. With SES now anchoring our results, our focus is clear – scale into an independent power producer and deliver sustainable return to our shareholders,” he said in a statement. The compendium is available through Bursa Malaysia.

o Industry players warn that if poorly managed, it could devastate businesses, cost thousands of jobs and expand the black market that the government seeks to curb

jective but argued that banning open-system devices unfairly penalises compliant businesses. “The concerns driving such a proposal are largely linked to illegal and unregulated players, not the legal, licensed retail sector. Banning legitimate products will not solve misuse issues. Instead, it risks pushing more consumers toward unregulated sources,” he said. Both Datametrics and MVCC stressed that bans are likely to alter consumer behaviour in unintended ways. “Consumer behaviour typically follows three paths: a minority will quit, some will revert to cigarettes, particularly dual users and a significant share will turn to black market products if legal access is removed or made too expensive,” Pankaj said. “Without strong enforcement against illicit trade, bans may end up enlarging the very market the government is trying to curb.” Ridhwan echoed the concern, saying a recent consumer survey of Malaysian vapers showed high capabilities can boost efficiency, increase business survival rates and significantly contribute to gross domestic product growth through higher productivity and export potential,” he said. As of March 31, the initiative had trained 4,000 entrepreneurs – 3,390 of whom are women – and aims to equip more individuals with the skills to grow their businesses through platforms such as TikTok Shop and Shopee. In a testament to its success, the Nadi Digital Inclusive Project was named the winner of the World Summit on the Information Society Award 2025 on July 7. Communications Minister Datuk Fahmi Fadzil said the award reflects international recognition of MCMC’s efforts to bridge the digital divide and enhance Internet accessibility. He urged MCMC to strengthen all 1,099 Nadi centres nationwide by expanding their capabilities, improving internet speed and offering additional services such as e-health, to ensure greater public benefit.

reforms under Budget 2026 are adding further pressure. “Retailers are facing a ‘double squeeze’ regulation, without any clear direction on one side and looming tax burdens on the other. This uncertainty has stalled confidence and increased the risk of more activity shifting into informal or unregulated channels, mainly due to lack of enforcement,” Pankaj said. The vape industry is not small. According to the Malaysian Vape Chamber of Commerce (MVCC), the sector supported 31,500 jobs in 2023 and was projected to contribute RM288 million in excise tax revenue between 2021 and 2025. “Retail value stood at RM3.48 billion in 2023, supporting a workforce of 31,500 people,” said MVCC secretary-general Ridhwan Rosli. “These businesses contribute to local employment, SME growth, and tax revenues. A shrinking industry would not only threaten livelihoods but also reduce this important tax stream.” Ridhwan acknowledged the government’s public health ob

Pankaj (left) and Ridhwan

opposition to strict retail restrictions, and the majority reported their intent to seek illegal sources if legal channels become too restricted. “Demand doesn’t disappear overnight, it often shifts to un regulated markets where product safety is unknown. That outcome would undermine the government’s safety goals,” he said. From a business standpoint, industry players warned the finan cial hit could be severe. “If a full ban is enforced, the legal market could collapse by more than 90% from its current RM3.48 billion value. Over 31,000 jobs, many tied to SMEs and family-run businesses, would be wiped out,” Pankaj said. “What will remain is an under ground economy where products are sold without standards, tax contributions or consumer pro tections.” For vape retailers, the uncertainty

MCMC’s Nadi drives e-commerce and expands reach of local businesses: Expert

Kinergy Advancement profiled in Bursa Blitz Compendium 2025 PETALING JAYA: Kinergy

KUALA LUMPUR: National Infor mation Dissemination Centres (Nadi), an initiative by the Malaysian Com munications and Multimedia Com

Shop, enabling them to market and sell their products beyond their local communities. “The programme also encourages

Advancement Bhd has been profiled in the Bursa Blitz Compendium 2025, a Bursa Malaysia initiative showcasing companies recently reclassified under the exchange’s sector framework. The Bursa Blitz Compendium serves as a research tool for investors, analysts, and stakeholders, offering insights into the strategic, opera tional and financial implications of sector reclassifications. Kinergy Advancement was reclassified into the Renewable Energy sector in January following its diversification from engineering into the sustainable energy solutions (SES) segment. In the compendium, Kinergy Advancement is highlighted for its record financial year 2024 (FY24) performance with revenue of RM244.8 million and net profit of RM21.5 million, strong SES momentum with revenue doubling to RM123.5 million, making SES the group’s primary earnings driver.

the adoption of digital tools such as ChatGPT and Canva AI to enhance digital mar keting and streamline daily operations,” he told Bernama recently. Ahmed Razman noted

mission (MCMC), is seen as a strategic tool to empower entrepreneurs by driving e commerce growth and enabling businesses to scale through wider market access, according to an economist. Putra Business School Professor Dr Ahmed Razman Abdul Latiff ( pic ) said Nadi strengthens local communi ties by providing targeted

that Nadi would enhance digital literacy among micro, small and medium enter prises by offering practical training in key areas such as cybersecurity, digital marketing and data analytics, ultimately streng thening their competitiveness. “Nadi guides MSMEs in embracing cashless transactions, streamlining operations and increasing participation in the digital economy. Improved digital literacy will enable MSMEs to scale more rapidly, innovate in products and services, and tap into global markets. “As MSMEs form the backbone of Malaysia’s economy, enhanced digital

training in essential digital skills, including digital marketing, online branding and social media engagement. These capabilities, he explained, are crucial for entrepreneurs seeking to boost their market visibility, attract a broader customer base and compete effectively in the digital economy. “Through Nadi, entrepreneurs gain access to workshops on e-commerce platforms such as Shopee and TikTok