KUALA LUMPUR, Feb 4 — The Malaysian Vape Chamber of Commerce (MVCC) has called on the government to regulate the industry as it is no longer a niche market.

Valued at RM2.27 billion, the vape industry is "too substantial to remain unregulated.”

While the government has already implemented an excise tax on vape devices and e-liquids since January 1, 2021 MVCC believes that the tax regime needs to be broadened to include e-liquids with nicotine which make up 97 per cent of the Malaysian market.

In a statement issued in conjunction with the launch of its "Study on the Malaysian Vaping Industry” report, MVCC wants the government to immediately introduce "appropriate regulations to create a positive multiplier effect to the Malaysian economy.”

"Our data strongly indicates that this sector is a viable and growing industry in Malaysia and can contribute significantly to the local economy. It has already facilitated the growth of local entrepreneurs, many of which are local and Bumiputera businesses,” said Syed Azaudin Syed Ahmad, president of MVCC.

He added that the industry has "an established ecosystem comprising manufacturers, importers and retailers, and a growing distribution and logistics network.”

MVCC said it spearheaded the study "in order to provide the government with a solid data-driven foundation to immediately introduce regulations on the vape industry.”

Some key findings from the study include: