Malaysia’s E-Vape Industry at a Crossroads: MOH Pushes Ban, Selangor Seeks Tax Revenue for Enforcement

KUALA LUMPUR, El Sky News – The debate over electronic cigarettes, commonly known as vapes, is heating up in Malaysia, highlighting a clash between the Ministry of Health (MOH)’s efforts to protect public health and the economic considerations of the growing consumer E&E (Electrical & Electronics) sector.

MOH has maintained a firm stance on addressing the public health risks posed by vaping devices. The Director-General of Health revealed that the ministry is finalizing a draft proposal for a full nationwide ban on the use and sale of vape products.

This drastic measure, expected to be presented to the Cabinet soon, aims to curb nicotine addiction among youth and prevent lung injuries associated with vaping products.

Tax “Squeeze” as a Short-Term Control Strategy
As a short-term control measure, MOH is also considering fiscal tools. A strong proposal has been made to increase taxes on nicotine-containing vape liquids and gels up to 10 times the current rate.

Although the steep tax hike is expected to generate additional government revenue, the primary focus is to make vape products unaffordable for teenagers.

“This significant tax increase acts as an important economic barrier. It is not only about revenue collection but also about limiting market access, especially for the most vulnerable groups,” said a MOH spokesperson.

Selangor Pushes for Tax Revenue Allocation to Local Enforcement
While MOH focuses on public health, the Selangor state government has highlighted the need to balance market realities with enforcement requirements.

Selangor authorities have publicly proposed that a portion of the taxes collected from regulated vape products — under the Excise Act — be allocated to state governments and Local Authorities (PBTs).

The aim is to provide a stable funding source for strengthening grassroots enforcement units. With sufficient funds, local authorities can conduct wider health education campaigns and implement compliance operations to ensure that vaping devices and liquids are sold legally and safely.

“If taxes are imposed, then the states and PBTs responsible for enforcement should receive a fair share. This is the only way to ensure that electronic cigarette laws are effective on the ground,” said a state executive council member.

The debate over the future of electronic vaping in Malaysia has now reached a critical stage, with the Cabinet expected to make a final decision on whether to move toward a total ban or implement strictly controlled taxation.