Interview with the Malaysian Electronic Cigarette Chamber of Commerce: Detailed Analysis of the Four Major Issues of the "Most Prohibited Smoking Order" GEG Act

2FIRSTS interviewed Ridhwan Rosli, the Secretary General of MVCC, and learned about his and MVCC's views on the GEG bill. In an interview, Redwin raised four major questions about the GEG bill. He believes that the lack of a clear and effective implementation method for the bill may also lead to the flourishing development of Malaysia's illegal e-cigarette market.
Recently, Malaysia plans to launch the Public Health Tobacco Product Control Act 2023 (GEG Act). The bill aims to prohibit people born in Malaysia after 2007 from using all tobacco products, including e-cigarettes, and imposes strict restrictions on the registration, advertising, promotion, sponsorship, packaging, and sales of tobacco products, including e-cigarettes. The media generally believes that the GEG bill is one of the strictest anti smoking laws worldwide.
The bill has attracted strong attention and opposition from the e-cigarette industry, with the Malaysian Electronic Cigarette Chamber of Commerce (MVCC) being one of the opponents.
Recently, 2FIRSTS interviewed the Secretary General of MVCC, Ridhwan Rosli, to learn about his and MVCC's views on the GEG bill. In an interview, Redwin raised four major questions about the GEG bill. He believes that the lack of a clear and effective implementation method for the bill may also lead to the flourishing development of Malaysia's illegal e-cigarette market.
Ridhwan Rosli, Secretary General of the Malaysian Electronic Cigarette Chamber of Commerce (MVCC)
The GEG Act does not specify an effective implementation method
Redwan introduced that although there are currently no specific regulatory details for e-cigarettes, MVCC has learned that the GEG Act basically treats e-cigarettes as products equivalent to smoking. At the same time, according to the bill, people born after 2007 will be prohibited from purchasing or using tobacco or e-cigarette products.
He told the two that MVCC firmly supports the Malaysian government's regulation of e-cigarettes, but opposes prohibiting individuals born after 2007 from purchasing and using e-cigarette products, as there is currently no clear effective implementation method.
Industry investment will decrease and lead to illegal market growth
When asked about the impact of the GEG bill on the Malaysian e-cigarette market, Radwan stated that if the bill is passed and not modified before it is passed, it will have a significant impact on the local market in the long term. This bill will significantly reduce external investment in the e-cigarette industry, as the number of potential consumers in the future will decrease.
In addition, Malaysia's illegal e-cigarette market will also grow as a result. Taking cigarettes as an example, Redwan stated that MVCC has also seen a similar trend in the Malaysian cigarette market. When the government raises tobacco taxes, more people will purchase illegal cigarettes.
May stifle local enterprises
Radwan introduced that due to the low entry threshold of the e-cigarette industry, the Malaysian market grew more than a decade ago through the development of small and medium-sized enterprises, mainly led by indigenous Malaysian (Bumiputera). It is precisely because of this that the market can develop so strongly without the participation of financial institutions and the government.
Radwan emphasized that until now, there are still thousands of local enterprises and tens of thousands of indigenous people working in the industry. The implementation of the GEG bill may hinder the hard work of local entrepreneurs in the e-cigarette industry, and will gradually stifle the local e-cigarette industry.
According to him, as the majority race in Malaysia's population, indigenous people account for 70% of the country's total population and have a significant impact on the economy and politics.
This is a method of seeking quick success and instant benefits
Radwan believes that if the GEG bill is passed, the younger generation may eventually turn to smoking and using illegal products. As in Malaysia, although drug abuse carries the death penalty, drug abuse still exists. Illegal cigarettes are still unable to be curbed, and the next possible target is electronic cigarettes.
He further pointed out that MVCC has been calling on the government to regulate e-cigarettes since 2015, but it seems that the government has been adopting a passive attitude. The government's current plan to implement the GEG bill is an unwise and quick approach, which may backfire.
Furthermore, although the GEG bill was proposed by the Ministry of Health, it requires another department to implement it. This means that the Ministry of Health requires funding from other departments to implement the bill, which may result in additional budget issues.
Finally, Radwan emphasized that Malaysia's e-cigarette market must be fully prepared, as once the bill is passed, the compliant market may face a huge challenge of irresponsible merchants illegally selling e-cigarettes.