In October last year, the Public Health Tobacco Products Control Bill 2023 (GEG Bill) being drafted in Malaysia was submitted to the House of Commons. According to the GEG Act, children born in 2007 and after will still be prohibited from smoking, buying or possessing any type of tobacco products, including vape products, even after turning 18 years old.

As soon as the news came out, public opinion was in an uproar. The GEG bill is said to be the “strictest smoking ban” in Malaysia’s history.

According to the Malaysian legislative process, once the GEG bill is approved by the House of Commons and the House of Lords, it will be submitted to the Head of State (i.e., the King of Malaysia) for approval. After the king gives his assent, the bill will become law and come into effect.

In response, Ridhwan Rosli, secretary-general of the Malaysian Vape Chamber of Commerce (MVCC), said that the GEG bill could cause serious damage to the Malaysian vape industry, which is dominated by Malays.

GEG bill: one of the strictest anti-smoking laws in the world

The GEG bill aims to ban people in Malaysia born after 2007 from using all tobacco products, including vapes, so the bill is also known as the “generational tobacco ban.” Additionally, the bill imposes restrictions on the registration, advertising, promotion, sponsorship, packaging and sale of tobacco products, including vapes.

The media commented that the GEG bill can be described as one of the most stringent anti-smoking bills in the world. It was first proposed by Malaysian Health Minister Khairy Jamaluddin in July 2022 and had its first reading on June 12, 2023.

Issues that may arise from the GEG Act:

·Resulting in the closure of vape businesses and loss of national tax revenue;

·Hindering the development of foreign and domestic investment industries across the manufacturing, logistics, distribution and retail sectors;

·Hinders the growth of local entrepreneurs;

·Leading to the reduction of more than 30,000 vape-related jobs;

· Hasty implementation of the bill may lead to black market problems.

At the same time, the Malaysian International Chamber of Commerce and Industry also believes that if the GEG bill is passed, Malaysia will be regarded as unfriendly to business and will lose foreign direct investment.

Ban on displaying cigarettes and vape products in grocery stores

Recently, the Malaysian government introduced a new policy banning the display of cigarettes and vape products in grocery stores, triggering strong dissatisfaction from the local grocery business federation!

The Federation of Grocery Merchants of Malaysia (FSGMAM) recently issued a solemn statement on the new policy proposed by the Malaysian government to ban the display of cigarettes and vape products in grocery stores, calling on the government to reconsider.

Hong Chee Meng, chairman of the federation, said in a statement that the regulation will impose a heavy financial burden and operational complexity on merchants. “Banning displays will cause retailers to increase in-store adjustment costs… We cannot afford such a price.” He said bluntly.

Hong Chee Meng emphasized that when the government introduced this regulation, it should take measures to severely crack down on illegal cigarette operations and prevent the smoking rate from increasing. “The real reason smoking remains widespread is that illegal cigarettes are cheap and easy to buy,” he said.

It is worth mentioning that the federation has written to the Ministry of Health twice requesting a meeting to discuss the matter, but has received no reply so far. Hong Chee Meng said that retailers, as the most direct stakeholders of this regulation, should receive detailed implementation details instead of being kept in the dark.

Hong Chee Meng finally called on the government to adopt a rational, efficient and balanced approach when formulating relevant regulations so as not to have a major impact on the retail business. “We would like to make it clear that retailers are not opposed to these regulations, but they must be reasonable.”

The federation’s call highlights the significant challenges faced by merchants. How the government will respond next has aroused great concern in the industry.