The vaping industry has witnessed global expansion, and Malaysia is no exception.
Depending on where you stand, you may view this as a positive or negative.
In this post, we cover how big the vape industry in Malaysia has grown and the various policies and regulations that have been imposed.
How Much Is the Malaysian Vape Industry Worth?
The retail value of the Malaysian vape industry has grown significantly, increasing by approximately 53% from RM2.27 billion in 2019 to an estimated RM3.48 billion in 2023.
There’s also been a massive increase in disposables. In fact, disposable products are responsible for RM925 million annually and have gained a market share of 32%. It’s also reported that over a million vapers are in the country.
According to the Malaysian Vape Chamber of Commerce (MVCC), the e-cigarette industry has created thousands of jobs throughout the supply chain, benefiting both local entrepreneurs and the workforce.
The findings from the MVCC study found that there are about 7,500 general retail stores that sell vape products and about 2,500 vape-specific retail shops. Also, the workforce within the vape industry has increased from 15,000 in 2019 to 31,500 in 2022.
How Has Malaysia’s Vape Policy Evolved?
Malaysia’s vape policy has gone through several changes in recent years. Due to concerns over health risks, some Malaysian states banned e-cigarette sales after the Malaysian government declared in 2015 that it would not be banning e-cigarettes.
However, in 2023, Malaysia decided to reinstate and legalise vaping by exempting nicotine products from the poison list and taxing them. The government aims to channel tax revenue from vape products to healthcare, which can potentially benefit the nation as a whole. Malaysia is reportedly one of the world’s largest e-liquid manufacturers. By embracing the vaping industry, Malaysia can potentially stimulate economic growth and create job opportunities. Thus, they could establish themselves as a hub for the production and export of vaping products.
In 2021, the Malaysian government introduced an excise duty on electronic and non-electronic cigarette devices and vape liquids. Specifically, retailers are charged 10% of the value of the products and an additional rate of RM0.40 per millimetre.
What Elements Define the Vape Industry in Malaysia?
There are a few key elements that accurately describe the state of affairs for the vape industry in Malaysia:
- Market Growth: The Malaysian vape industry has experienced significant growth over the years, driven by consumer demand for alternative nicotine products. This growth is reflected in the increasing number of vape shops and users.
- Regulations: As of August 3rd, 2022, both local and imported electronic cigarettes require SIRIM certification and labelling. Manufacturing companies meeting certain criteria must obtain a business license.
- Controversy: Vaping’s health effects remain a subject of debate in Malaysia, as they do globally. Some view vaping as less harmful, while others express concerns about its long-term health risks, particularly among young people. Many retailers sell non-nicotine options – according to this source, 34% of vapers choose only e-liquids containing nicotine, while 28% opt for non-nicotine, and 38% choose both.
- Economic impact: Malaysia is the world’s largest exporter of e-juice liquids, with an estimated value of RM3.48 billion. It has undoubtedly helped to stimulate the economy, creating thousands of jobs in the process.
What Are the Regulatory Concerns Surrounding Vaping?
For the government, one of the primary concerns surrounding the prevalence of vaping is the potential addiction to e-cigarettes due to the nicotine contained inside and the variety of flavours used.
There are also concerns about the marketing and promotion of vaping products, particularly to young people, and the potential for vaping to serve as a gateway to smoking. In addition, there are debates on how best to regulate the industry to ensure the safety of all consumers.
Despite the concerns, Malaysia has decided to effectively legalise vaping, exempting nicotine liquids and gels from the poisons list and taxing them. Since vaping is seen as the cheaper option, it’s often seen as a potential alternative for smokers who may want to switch to vaping.
One of the proposed regulations includes a ban on open-system vapes, which could impact many vape retailers who primarily sell open pod systems like box mods and devices with refillable tanks.
Looking To Buy a Disposable Vape? Shop WAKA Vape in Malaysia!
Malaysia is one of the biggest vape markets in the world and certainly the largest exporter of vape juices.
It’s a huge part of the economy and is already woven into the cultural fabric of the nation.
Vaping is no stranger to controversy, especially in Malaysia, where there have been ongoing attempts to regulate the sale and use of e-cigarettes.
That said, vaping is available for purchase in Malaysia. If you’re interested in buying the highest quality disposable vapes, there’s no better retailer than WAKA Vape.
You’ll find a wide range of products with dozens of flavours to suit your taste buds. Each vaping device delivers a rich and smooth taste from the very first puff to the last. Shop Waka Vape to enjoy a superior vaping experience.