BAT’s Vuse to exit the Malaysian market by Q3 2025
Today (April 28), British American Tobacco Malaysia said it will gradually phase out its vapor products from the Malaysian market by the third quarter of 2025 in order to comply with the new Control of Smoking Products for Public Health Act 2024 (Act 852)
Today (April 28), British American Tobacco Malaysia Berhad said it will gradually phase out its vapor products from the Malaysian market by the third quarter of 2025 in order to comply with the new Control of Smoking Products for Public Health Act 2024 (Act 852).
In a filing, BAT Malaysia said: “To comply with Act 852 and the new regulatory requirements for vapor products set out in its regulations, which will come into effect on October 1, 2025, the company will phase out its current Vuse product portfolio in the third quarter of 2025.”
The company said the transition period will be used to conduct a commercial assessment of Vuse products while complying with the new rules, and it will continue to focus on “delivering combustible value growth.” BAT Malaysia expects the exit to have a negligible impact on its financial performance for the fiscal year ending December 31, 2025. Vuse is the world’s number one e-cigarette brand by market share and is currently the only vaping product sold by BAT Malaysia.
Last week, Health Minister Datuk Seri Dzulkefly Ahmad said the government would step up enforcement and regulation of e-cigarette and vapor products under Act 852. Act 852 first came into force last October and specifically targets individuals under the age of 18, prohibiting them from purchasing or using any smoking products in Malaysia, including e-cigarettes and vaping devices.
In FY2024, BAT Malaysia’s gross profit margin fell by 1.2 percentage points to 23.4%, or RM541 million (US$124.4 million), from RM568 million (US$130.6 million) in FY2023, mainly due to the lower margins of vapor products.
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