Exclusive Interview with the Malaysian Vaping Chamber of Commerce: Four Major Questions About the “S

2FIRSTS interviewed Ridhwan Rosli, the Secretary-General of the Malaysian Vaping Chamber of Commerce (MVCC), to understand his and MVCC's views on the GEG bill. In the interview, Ridhwan raised four major concerns about the GEG bill. He believes that the bill lacks a clear and effective enforcement mechanism and may lead to the flourishing of the illegal e-cigarette market in Malaysia.

[Original from 2FIRSTS] Recently, Malaysia plans to introduce the "2023 Public Health Tobacco Product Control Bill" (GEG Bill). This bill aims to prohibit individuals born after 2007 from using any tobacco products, including e-cigarettes, and imposes strict restrictions on the registration, advertising, promotion, sponsorship, packaging, and sale of tobacco products (including e-cigarettes). The media widely considers the GEG bill to be one of the strictest anti-smoking laws globally.
 

The bill has sparked strong concern and opposition from the e-cigarette industry, with the Malaysian Vaping Chamber of Commerce (MVCC) being one of the opponents.
 
Recently, 2FIRSTS interviewed Ridhwan Rosli, the Secretary-General of MVCC, to understand his and MVCC's views on the GEG bill. In the interview, Ridhwan raised four major concerns about the GEG bill. He believes that the bill lacks a clear and effective enforcement mechanism and may lead to the flourishing of the illegal e-cigarette market in Malaysia.

Ridhwan Rosli, Secretary-General of the Malaysian Vaping Chamber of Commerce (MVCC) 

The GEG Bill Lacks a Clear and Effective Enforcement Mechanism 

Ridhwan explained that although there are currently no specific details on e-cigarette regulation, MVCC has learned that the GEG bill essentially treats e-cigarettes as equivalent to smoking products. Meanwhile, according to the bill, individuals born after 2007 will be prohibited from purchasing or using tobacco or e-cigarette products. 

He told 2FIRSTS that MVCC firmly supports the Malaysian government's regulation of e-cigarettes but opposes the prohibition of individuals born after 2007 from purchasing and using e-cigarette products, as there is currently no clear and effective enforcement mechanism.

Investment in the Industry Will Decrease and Illegal Markets Will Grow 

When asked about the impact of the GEG bill on the Malaysian e-cigarette market, Ridhwan stated that if the bill is passed without modifications before its enactment, it will have a significant long-term impact on the local market. The bill will significantly reduce external investment in the e-cigarette industry, as the number of potential consumers will decrease.

Additionally, the illegal e-cigarette market in Malaysia will grow as a result. Ridhwan cited the example of cigarettes, stating that MVCC has observed the same trend in Malaysia's cigarette market; when the government raises tobacco taxes, more people tend to purchase illegal cigarettes.

It May Stifle Local Businesses 

Ridhwan explained that due to the initially low entry barriers in the e-cigarette industry, the Malaysian market has grown over the past decade through the development of small and medium-sized enterprises, primarily led by the Bumiputera (indigenous Malaysians). This is why the market has been able to grow so robustly without the involvement of financial institutions and the government.

Ridhwan emphasized that even now, there are thousands of local businesses and tens of thousands of indigenous people working in this industry. Implementing the GEG bill may hinder the hard work of local entrepreneurs in the e-cigarette industry and gradually stifle the local e-cigarette sector.

According to him, the Bumiputera, who make up the majority of Malaysia's population at 70%, have a significant impact on the economy and politics.

This is a Short-Sighted Approach 

Ridhwan believes that if the GEG bill is passed, the younger generation may ultimately turn to using illegal products. Just as in Malaysia, despite the death penalty for drug abuse, drug abuse still exists. Illegal cigarettes are currently still rampant, and the next potential target may be e-cigarettes. 

He further pointed out that MVCC has been calling for government regulation of e-cigarettes since 2015, but the government has appeared to take a passive stance. Now that the government plans to implement the GEG bill, it is a shortsighted and hasty approach that may backfire.

Additionally, although the GEG bill is proposed by the Ministry of Health, it requires another department to enforce it. This means that the Ministry of Health is asking other departments to allocate funds to enforce the bill, which may lead to additional budget issues.

Finally, Ridhwan emphasized that Malaysia's e-cigarette market must be well-prepared, as once the bill is passed, the compliant market may face significant challenges from irresponsible merchants illegally selling e-cigarettes.