KUALA LUMPUR (Feb 4): It is high time that the RM2.27 billion vape industry in Malaysia is regulated, said the Malaysian Vape Chamber of Commerce (MVCC).
In a statement today in conjunction with the launch of its Study on the Malaysian Vaping Industry report, MVCC said the vape industry in Malaysia is too substantial to remain unregulated and urged the government to immediately introduce appropriate regulations to create a positive multiplier effect on the Malaysian economy.
MVCC president Syed Azaudin Syed Ahmad said available data strongly indicates that the 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.
"In addition, the Malaysian vape industry currently has an established ecosystem comprising manufacturers, importers and retailers, and a growing distribution and logistics network," he added.
Meanwhile, a market research commissioned by MVCC showed that there are more than 3,300 businesses related directly to the vape industry, with a workforce of more than 15,000 workers.
The study by market research agency Green Zebras further estimated that workers in vape industry were paid up to RM450 million in wages in total in 2019 alone.
Other key findings from the study include:
• The workforce in this industry are mainly young adults, under 30 years of age, and predominantly of Malay ethnicity.
• There are 1.12 million vapers in Malaysia based on the Ministry of Health's data.
• The ethnic profile of vape users reflects the national race composition — Malay (70%), Chinese (25%), Indians and others (5%).
• 94% of vape users have a history of smoking cigarettes, and the top reasons given for choosing to vape are as a means to quit smoking cigarettes (57%) and because it is less dangerous compared to smoking cigarettes (56%).
The global e-cigarette and vape market size is expected to reach US$67.31 billion (RM272.54 billion) by 2027, registering a revenue-based CAGR of 23.8% from 2020 to 2027, according to a new study conducted by India and US-based market research firm Grand View Research, Inc.
The research added the growing awareness regarding consuming safe, smokeless, and ashless tobacco is expected to propel the growth.
"Furthermore, vaping is considered to be an effective method to quit smoking, as it is less toxic and creates vapour instead of smoke.
"The adoption of vaping devices is expected to increase, particularly among individuals willing to quit smoking or willing to smoke merely for recreation," it said.