The Malaysian International Chamber of Commerce and Industry (MICCI) said it supports any tobacco cessation or harm reduction efforts by the government, but claims the bill would send investors “the wrong message”.
“Investors will be reluctant to invest in the country that implements the harsh banning of the industry and it will definitely deter future investments into this sector in Malaysia,” it said in a statement today.
Yesterday, health minister Dr Zaliha Mustafa announced that the bill would be tabled in Dewan Rakyat for its second reading on Oct 10. It seeks to ban the use, purchase and sale of cigarettes and vape products to those born after 2007.
MICCI said the first investments at risk are the Health E-Atomisation Industrial Park and the Asean Health E-Atomisation Forum that were announced earlier this year in Melaka.
“On the existing local industry, it may also lose its domestic investors, which will see impact to local manufacturing, distribution and retail industries that relate to the vape sector,” it said.
The group called for the government to decouple the GEG provisions from the bill to immediately address the unregulated potentially hazardous vape liquids and derive much needed tax revenues for rebuilding Malaysia’s reserves.
The Federation of Sundry Goods Merchants Associations of Malaysia (FSGMAM) also lamented the tabling of the GEG bill, claiming that “no one is aware as to how the proposed law will be implemented”.
Its president, Hong Chee Meng, said the matter was “never discussed with any retailer”, who are frontliners in implementing the new policy.
In a statement, Hong also said members of the association are concerned that the unclear implementation rules will lead to them being fined heavily since it has been reported that the revised bill includes higher fines for suppliers.
The Consumer Choice Center (CCC) yesterday urged the government to take into account the views of various parties in a “serious and fair manner” and adopt a policy approach based on evidence.
The Malaysia-Singapore Coffee Shop Proprietors’ General Association (MSCSPGA) also warned that the higher penalty on suppliers under the proposed law will have an impact on the livelihood of retailers.
“It adds unnecessary burden to our long list of issues at hand, including the increasing cost on business operations due to the introduction of minimum wage hike, the increase in utility bills, and others,” its president, Wong Teu Hoon, said on Wednesday.