KUALA LUMPUR (Feb 20): The Malaysian vape industry grew to RM2.49 billion in 2022, from RM2.27 billion in 2019, according to preliminary industry data for the vape industry from the Malaysian Vape Chamber of Commerce (MVCC).
In a statement on Monday (Feb 20), the MVCC, however, said that compared with 2019, the number of vape specialty stores had declined from 3,000 to 2,250, likely due to the Covid-19 pandemic over the past few years, which forced many vape outlets to fold.
At the same time, the findings also indicate that the industry has expanded its sales channels, with vape products now also made available in general stores.
According to MVCC findings, there are some 7,500 general retail stores that have also started trading vape products.
Ridhwan Rosli, the secretary general of the MVCC, said these findings are clear indication of the strong potential and resilience of the industry, despite the pandemic's adverse effects.
“Beyond creating more employment opportunities for many Malaysians, the vape industry has also evolved to strengthen its small and medium enterprise ecosystem as well as attracting more investments.
“The industry is also poised to contribute significant revenue for the country, with economic analysts estimating that the government could collect up to RM1 billion excise tax revenue from the industry once regulations kick in, as well as boosting investors' confidence to pour in more domestic and foreign investments,” he said.
Ridhwan said the MVCC estimated that the number of vape consumers in Malaysia had increased to between 1.4 million and 1.5 million users, as preliminary data showed that the sales volume of vape products in the market had increased.
“This further adds to the urgency of regulations to ensure Malaysian vape consumers have access to products that are regulated with quality and safety standards,” he said.