By Malaysiakini
Having ridden the gravy train in the no-regulation zone, vape industry players are now up in arms over sudden raids on retailers. Local vape players say that the government should come up with a “Vape Act” to regulate the industry.
______________________________________________________________________
Confiscation of thousands of bottles of vape juice laced with nicotine has led to dizzying losses of up to RM200,000 for those in the trade such as in the case of industry big name Vape Empire Malaysia.
Meanwhile, smaller players like Edi Mohamad are still bleeding in the aftermath.
The owner of Vape Port, a vape shop and café in Cheras, Kuala Lumpur told Malaysiakini that sales have dropped following the raids because customers are afraid.
“If you (the government) want to raid, don’t raid us (retailers). They should instead regulate the suppliers.
“How is it that everyone can sell cigarettes but we (vape retailers) are harassed for selling something less dangerous?” he asked.
The comparison to the easily available conventional cigarettes has prompted allegations that the Health Ministry is backed by big tobacco players, which are trying to snuff out competition.
Regulatory maze
A look into the regulatory maze now used to control the RM2.8 billion industry, however, may show otherwise.
This differs from conventional cigarettes, which can be sold by unlicensed retailers according to the Foods Act 1983. Tobacco products are controlled under this Act under the subsection The Control of Tobacco Products Regulations 2004.
This regulates the sale and production of tobacco products from its advertising (where companies cannot advertise or promote their products) to its packaging (requiring prominent display of gruesome health warnings).
Vape liquids and vape devices, however, are in a grey area. Although the liquid can fall under the purview of the Health Ministry and the Poisons Act, the vape devices would not. According to the Poisons Act, liquid nicotine (a component commonly but not necessarily found in vape juices) can only be sold by a licensed professional, for example a pharmacist.
This has been the basis of the raids on vape retailers, but retailers say this is unreasonable, arguing that the 9 to 12 mg of nicotine conventionally found in a bottle of vape juice is “too low” to cause harm.
Makers and sellers of vape and vaping liquids are also not bound by packaging or advertising laws, to the ire of health professionals who rue how the titillating marketing is attracting younger users. The vape mods – devices used to inhale the vapourised juices – however, are regulated under trade laws like the Trade Description Act 2011 and Consumer Protection Act 1999.
Centralising legislation
With investments into the industry now at risk of going up in smoke, players are mooting an alternative – a Vape Act to regulate all aspects under a single piece of legislation.
The new law should aim to regulate all aspects of vaping: safety of the device, contents of e-liquids, restriction on use and sale, or other related concerns, said Malaysian Organisation of Vape Entities (Move) secretary Syamsul Reza Mohd Mokhtar.
“Malaysian modders and brewers have already made their mark in the global vape scene.
“If the government can successfully enforce a new Vape Act, we would be the first country in the world to have done so.
“Having one single Act will also eliminate any confusion or conflicting regulations with regards to vaping,” he said. Malaysia Vapourisers and Tobacco Alternative Association (Mevta) president Allan Foo understands how the mammoth industry can raise various “very scary” issues for regulators.
“Right now, the authorities are only seeing nicotine (in vape juice) as an issue when they proposed to ban vaping.
“But even if they resolved the nicotine issue, there will be issues of potential abuse, overall quality of production (of mods and vape juices), the supply chain, consumer issues and others,” he said.
Abuses include the use of vape mods to inhale illegal substances like ganja (marijuana) – though vapers told Malaysiakini on condition of anonymity that vaping ganja does not give bang for their buck. In fact, said one user, it is easier to roll a joint than to vape the marijuana.
Allan Foo
Foo said with an estimated one million consumers, the Malaysian vape scene has been forced to self-regulate.
Those in the industry have kept one another in check and invested in research and development to improve on the technology and products, he said.
Big players in vape would stand to gain from clearer regulations, he said, while big tobacco companies would lose out.
That is unless they, too, delve into the business of e-cigarettes – a trend slowly evident among tobacco giants serving the European and United States markets.
Ban or not to ban
Malaysia is not the only country facing the challenge of regulating the relatively new phenomenon. The regulatory environment for vaping worldwide can be grouped into three segments – permitted (no ban), partial permission (ban on vape products containing nicotine) or an outright ban. E-cigarettes are banned in countries like Brunei, Singapore, Thailand, the Philippines and Taiwan, under existing tobacco control laws – a model Malaysia’s Health Ministry said it could be looking at.
In Europe, however, new provisions under the EU Tobacco Products Directive dictates how e-cigarettes can be sold, presented and manufactured, starting May 2016. For example, the directive limits the size of juice containers to 2 mil, refill bottles are restricted to 10ml while the maximum nicotine content is 20mg. There is also a requirement to ensure devices are leak-free.
Vape retailer Edi believes that now is the best time for the government to jump on the vape cash train, to both regulate and impose taxes.
“They (the government) are the ones in control of the country and they should regulate before it is too late.”
Beyond consumption taxes – Malaysia is the world’s second largest consumer market for vaping – the government stands to rake in tax ringgit from a growing manufacturing industry.
Malaysian vape juice brewers and modders – a term to describe manufacturers of vape devices – have gained a reputation overseas.
One of them is Ibnul Faridh Abdul Ghaffar, who started to produce local premium vape juices in 2013 under the cheekily-named label ‘Fcukin Flava’.
With marketing mostly done online, Ibnul Farisham said he started receiving orders from vape retailers overseas who are interested in the unique tropical flavours offered like ‘mango’ and ‘pineapple’.
“Fcukin Flava uses flavourings produced by Malaysian manufacturers. Compared to the ones imported from US, ours taste better.”
The firm now supplies its vape juices to as far as Europe but Ibnul Farisham said that a proper regulation can help many other local entrepreneurs to expand their own businesses.
“Just this year, I have been to Paris twice and also to Birmingham. There is a high demand for our products overseas but there are certain standards which must be met, for example certification from local authorities,” he explained.
Vape juice and flavours imported from the US, for example, are certified by its Food and Drug Administration.
With an industry worth RM2.8 billion and growing, the amount of tax revenue the government could potentially make from vaping is likely to be a welcome boon at a time of austerity.
While projected revenue is difficult to calculate in the absence of the type of taxation to be levied, revenue from cigarettes could give an indication.
The Malaysian Royal Customs Department last year collected RM3.4 billion in excise duties from cigarettes, representing its third largest revenue stream.
But in the EU, e-cigarettes are spared the levy imposed on cigarettes. Instead, they are only subject to the value-added tax – the equivalent to Malaysia’s goods and services tax – of around 20%.
The jury is still out on the debate between public health and the economy.
What is clear, however, a single regulatory framework is a good way to clear the air.
You must be logged in to post a comment.