Malaysia’s ‘Toughest Smoking Ban’ Sent for Review as Vape Businesses Jointly Petition in Opposition

In response to the GEG bill, Malaysian e-cigarette dealers have informed that local communities have begun gathering e-cigarette businesses and consumers to sign petitions against the bill, planning to submit these petitions to the government to prevent the GEG bill from taking effect.

According to Malaysian media reports, the Malaysian "2023 Public Health Tobacco Product Control Act" (GEG bill) will be submitted to the lower house for a second reading this week. According to the GEG bill, children born in 2007 and later will be prohibited from smoking, purchasing, or possessing any type of tobacco product, including e-cigarette products, even after turning 18.

The news has caused an uproar. The GEG bill is being labeled as Malaysia's "toughest smoking ban" in history.

According to Malaysian legislative procedures, once the GEG bill is approved by both the lower and upper houses, it will be submitted to the head of state (the King of Malaysia) for approval. Once the King agrees, the bill will become law and take effect.

In this regard, Ridhwan Rosli, Secretary-General of the Malaysian Vape Chamber of Commerce (MVCC), stated that the GEG bill could severely damage the Malaysian e-cigarette industry, which is predominantly led by Malays.

What impact will the GEG bill have on Malaysia's e-cigarette industry? On October 9, two media outlets interviewed some local e-cigarette brands and dealers.

GEG Bill: One of the Strictest Anti-Smoking Laws Globally 

The GEG bill aims to prohibit all tobacco products, including e-cigarettes, for individuals born after 2007, hence it is also referred to as the "Generational Tobacco Ban." Additionally, the bill imposes restrictions on the registration, advertising, promotion, sponsorship, packaging, and sale of tobacco products (including e-cigarettes).

Media evaluations state that the GEG bill is one of the strictest anti-smoking laws globally. It was first proposed by Malaysian Health Minister Khairy Jamaluddin in July 2022 and was reintroduced for a reading on June 12, 2023.

Notably, New Zealand has also proposed a similar bill. The difference is that New Zealand passed a related bill in December 2022, prohibiting the sale of tobacco products to anyone born after 2009.

MVCC: The Bill Will Cause Five Major Issues 

According to the latest data from MVCC, Malaysia has 250 e-cigarette manufacturers, 100 e-cigarette importers (up from only 30 in 2019); additionally, there are about 7,500 general retail stores and 2,500 specialty stores selling e-cigarette products.

MVCC believes the GEG bill may lead to the following issues:

• Closure of e-cigarette businesses, resulting in national tax revenue loss;

• Hindrance to the development of foreign and domestic investment in the entire manufacturing, logistics, distribution, and retail sectors;

• Obstruction of local entrepreneurs' growth;

• Reduction of over 30,000 e-cigarette-related jobs;

• Hasty implementation of the bill may lead to black market issues.

At the same time, the Malaysian International Chamber of Commerce also believes that if the GEG bill is passed, Malaysia will be seen as unfriendly to business, leading to a loss of foreign direct investment.

E-cigarette Businesses: Jointly Petitioning Against the Ban 

How do e-cigarette manufacturers view the GEG bill?

Two Malaysian companies expressed differing views in interviews with the media.

The Malaysian business manager of the Chinese e-cigarette brand Lanavape, Jing Ye, stated that based on past experiences, law enforcement in Malaysia has not been strict, so they expect the bill may be difficult to implement effectively. Therefore, e-cigarette practitioners are not overly concerned about the bill.

Jing Ye also revealed that Lanavape is continuing to expand in Malaysia, planning to add more than 10 stores.

Another local dealer, Lam, believes that the GEG bill will affect the profits of e-cigarette businesses and may lead to more smuggled products entering the market.

Lam revealed that the Malaysian e-cigarette community has begun gathering e-cigarette businesses and consumers to sign petitions against the bill, planning to submit these petitions to the government to prevent the GEG bill from taking effect.