Nanostix Innovation Sdn Bhd director Shahabudeen Jalil said the ministry needs to consider all views for the Act to regulate the industry, pointing to the RM2 billion the sector contributes to the economy annually.

Shahabudeen told FMT that industry players have been called up by the ministry for briefings over the past seven years, though they were usually just “told what to do” by the government.

He said there was no chance for industry players to give the ministry their own views or feedback, describing it as more of a “top-down” approach.

“Industry players can give input on the situation and industry in Malaysia.

“Vape technology evolves fast and industry players are experts and pioneers in this industry. We know what can and cannot be done, what requires heavy investments and what does not,” he said.

He said regulations should be tailored to suit the situation on the ground in Malaysia and that this will better ensure compliance.

“Regulations should facilitate legitimate businesses and not discourage or disincentivise industry players from playing by the book,” he said, maintaining that he welcomed the proposal to regulate the industry.

Shahabudeen said the ministry needs to get the industry’s feedback since it has birthed numerous Bumiputera entrepreneurs, pointing to how over 3,300 businesses have mushroomed since the sector’s emergence with 15,000 jobs created.

“Eonomists estimate that Malaysia’s vape industry could be worth more than RM10 billion in several years’ time if it receives an injection of stimulus from the government, including a suitable regulation mechanism,” he said.

In November, the ministry confirmed that a bill on the regulation of tobacco, e-cigarettes, vape and shisha could be tabled in the first Dewan Rakyat session of 2022, though it was supposed to be brought to Parliament in 2020.

The ministry said the bill will pave the way for comprehensive regulation of conventional tobacco products and new smoking products like vape that attract younger smokers.

Putrajaya also plans to impose an excise duty of RM1.20 per millilitre of vape liquids in 2022 to regulate the industry, on top of the 10% duty on all electronic cigarettes and other smoking devices, including vapes, introduced last year.

Nanostix, which has expanded overseas with a presence in the UK, Australia, Russia and Indonesia, among others, has been championing excise duties for vape liquids since 2015.