KUALA LUMPUR: Malaysia's vape entrepreneurs have always supported and welcomed regulation and the introduction of product safety standards in order to grow the RM2.27 billion industry.
The recently released report entitled Study on the Malaysian Vaping Industry by the Malaysian Vape Chamber of Commerce (MVCC) indicated that the potential is vast for small and medium enterprises (SME) players if the vape industry is regulated.
According to the report, the industry now has a sizeable ecosystem of manufacturers, importers and retailers which are predominantly run by SMEs.
MVCC president Syed Azaudin Syed Ahmad said the industry has already seen over 3,300 businesses established, creating more than 15,000 jobs.
With the right regulations, SMEs in Malaysia stand to benefit substantially.
"There are currently 1.12 million vape users in Malaysia, according to the National Health and Morbidity Survey 2019 conducted by the Ministry of Health.
"We expect this to grow in tandem with global trends, as more and more smokers switch to vape, which has been proven to be less harmful than traditional smoking," he said.
Finance minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz, in a recent forum by Bursa Malaysia themed 'Menang Bersama: Rebuilding Malaysia's Economy Together', pointed out that over 70 per cent of SMEs in Malaysia posted a loss in 2020.
To note, SMEs have a critical role to play if we are to renew, transform and rebalance our economy and contributed 38.9 per cent of the gross domestic product (GDP) in 2019, which roughly translates to RM586.9 billion, and constitute 7.3 million out of the nearly 15 million total workforce, data from the Department of Statistics (DOSM) showed.
Outside Malaysia, local vape shops are thriving and play an important role in educating towards tobacco harm reduction.
In Africa, vaping companies are calling for separate legislation to the Control of the Tobacco Products and Electronic Nicotine Delivery Systems Bill, an online news portal reported.
It said as the country's vape industry await its first new laws since 2018, vaping companies said they don't encourage non-smokers to vape and that the product should be used as a reduced alternative to smoking.
In a recent study conducted in the United Kingdom, University of York research fellow from the Department of Sociology Dr Frances Thirlway said the country's independent vape industry involves a multitude of locally-based, small, enthusiastic start-up vape shops providing customers with expert advice and support to switch from smoking to vaping.
"However, it is important to note that the prospects of the vaping industry depend on enlightened regulation informed by a sensible assessment of relative risk," she said during a recent virtual E-Cigarette Summit.
While some may see this as a positive development, public health experts and even industry players often put a caveat that the effectiveness and viability of vape devices hinge on practical regulations and robust enforcement to ensure the right standards are met.
In response, Thirlway says the UK can provide other countries an example of what effective regulation looks like, in terms of protecting the public from defective products and under-age sales, and controls on themes and placement of advertising.
"Prospects of the vaping industry depends on enlightened regulation informed by a sensible assessment of relative risk," she said.
Industry observers opined that clearer laws regarding vaping will create a more thriving industry, promote SMEs growth and could create more awareness and opportunities in the vape sector.