Tobacco Asia

26 tobaccoasia PRODUCT NEWS 产品新闻 Malaysia's Nicotine Rules in Question Malaysia's decision not to pursue its appeal against a High Court ruling on liquid nicotine has left the government facing calls to clarify the legal framework governing nicotine-contain- ing vape products. The government filed a notice of discontinuance with the Court of Appeal on August 18, leaving the High Court's May 15 ruling in place. The court found that the 2023 decision to remove liquid and gel nicotine from the Poisons List was unlawful because the then health minister had not properly consulted the Poisons Board. The ruling prompted calls from the Malaysian Organiza- tion of Vape Entity (MOVE) for immediate clarification of the relationship between the Poisons Act 1952 and the Control of Smoking Products for Public Health Act 2024 (Act 852). MOVE represents more than 55,000 members. The dispute centers on the government's 2023 decision to remove liquid nicotine from the Poisons List before Act 852 took effect on October 1, 2024. The High Court found that the exemption created a regulatory gap and that economic considerations, including taxation, played a significant role in the decision. With the appeal dropped, the High Court judgment now stands, raising questions over whether nicotine- containing vape products can continue operating under Act 852 or whether their status under the Poisons Act requires further legislative action. MOVE said Act 852 should remain the regulatory framework for vaping products and urged the government and Health Ministry to clarify the legal position. It argued that a regulated market allows authorities to enforce requirements such as age verification, operating procedures and oversight. "Prohibition does not automatically remove demand. It removes the regulated channel. If the objective is to protect youth and consumers, the stronger approach is to keep the market visible, accountable and enforceable," MOVE presi- dent Samsul K. Arrifin said. The group also warned that regulatory uncertainty could push consumers toward illicit channels, making product standards, traceability, ingredient transparency and tax collec- tion more difficult to enforce. The dispute has financial implications as well. CodeBlue reported that the government could face more than MYR354 million (US$88.5 million) in tax refunds following the ruling, and valued Malaysia's vape industry at MYR3.48 billion (US$870 million). The government has also faced questions over which ministry should oversee tobacco and nicotine products. CodeBlue reported that the Ministry of Domestic Trade and Cost of Living (KPDN) could potentially assume responsibility if parliament classifies tobacco and nicotine products as ordinary trade commodities. KPDN has previously maintained that nicotine vape products fall under the Health Ministry because nicotine remains classified as a poison. California Bans Disposable Vapes California governor Gavin Newsom has signed legislation prohibiting the manufacture, import, and sale of new or refurbished disposable, battery-embedded vapor products in the state. AB 762, authored by assembly member Jacqui Irwin, becomes effective in stages. Starting January 1, 2027, manufac- turers and importers cannot manufacture or import the covered products for sale in California. Retail sales, distribution, and offers for sale will become prohibited from January 1, 2028. The legislation defines the products as disposable vaporization devices containing a tobacco product that are not designed or intended for reuse. The law does not cover cannabis or cannabis products. California can impose civil penalties for violations. The law sets fines at US$500 for a first violation, US$1,000 for a second, and US$2,000 for subsequent violations. Local governments and the state can enforce the restrictions. Newsom signed AB 762 as part of a package of legisla- tion that included measures concerning tobacco and vaping products. The governor's office said the legislation also bans advertising for vape products designed to resemble products marketed to minors. The disposable-vape measure focuses on the devices' single-use design and embedded batteries. Supporters have pointed to waste and battery-related fire concerns associated with discarded devices. BAT Sees Pouch-Led Growth Through 2030 British American Tobacco (BAT) expects revenue from smoking alternatives to grow at a mid-teens percentage rate annually through 2030, with nicotine pouches emerging as the main driver of its growth strategy. The company outlined its outlook during its September 29 investor day, where it presented its plans for growth through the end of the decade. BAT expects the broader nicotine industry to generate 4% revenue growth annually between 2025 and 2030, while revenue from nicotine pouches could triple during the same period. BAT had already forecast mid-teens revenue growth from smoking alternatives for 2026 and now expects that pace to continue in the years ahead. The company's growing confidence in the category reflects the rapid growth of its Velo nicotine-pouch brand, following difficulties with its vape and heated tobacco brands. BAT also expects the contribution margin from smoking alternatives to reach at least 30% by 2030, compared with 13.3% in June 2026. Malaysia faces calls to clarify the legal status of nicotine-containing vape products. Credit: Matheus Bertelli, Pexels.

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