KUALA LUMPUR (April 28): British American Tobacco (Malaysia) Bhd (KL:BAT) said on Monday that it will phase out its vapour products from the Malaysian market by the third quarter of 2025 to comply with the new Control of Smoking Products for Public Health Act 2024 (Act 852).
“In order to comply with the new regulatory requirements for vapour products as set out in Act 852 and its regulations that will take effect on Oct 1, 2025, the company will be transitioning out its current range of Vuse products in the third quarter of 2025,” BAT Malaysia said in a filing.
The tobacco group said that the transition will undertake commercial assessments of Vuse products while adhering to the new regulations, with a continued focus on “delivering combustible value growth”, it said.
BAT Malaysia expects that the exit will have a minimal impact on its financial performance for the financial year ending Dec 31, 2025 (FY2025).
Vuse, claimed as the No 1 global vaping brand by market share, is currently the only vapour product sold by BAT Malaysia. The company also sells tobacco brands such as Dunhill, Peter Stuyvesant, Rothmans, KYO and Luckies, according to its latest annual report.
Last Thursday, Health Minister Datuk Seri Dr Dzulkefly Ahmad was quoted as saying that the government will intensify enforcement and regulation of electronic cigarettes and vape products under Act 852.
Act 852, which first came into effect on Oct 1 last year, specifically targets individuals under the age of 18, who are prohibited from purchasing, using, or being sold any smoking products, including e-cigarettes and vape devices, in Malaysia.
In FY2024, BAT Malaysia’s gross profit margin slipped 1.2 percentage points to 23.4% or RM541 million, compared with 24.6% (RM568 million) in FY2023, largely due to lower margins from vapour products.
Net profit for FY2024 slipped 5.96% to RM183.14 million, from RM194.75 million in FY2023, despite revenue rising marginally by 0.19% to RM2.32 billion versus RM2.31 billion.
Shares of BAT Malaysia settled up five sen or 0.78% to RM6.50 on Monday, valuing the group at RM1.86 billion.