Survey Of E-cigarette Store Owners in Malaysia: Half Of Inventory May Be Scrapped After New Regulations Come Into Effect

The e-cigarette market in Malaysia is undergoing a profound transformation. With the upcoming new regulations from the government, 2,000 stores in the industry are facing challenges such as product restructuring, huge losses in inventory, and even the threat of survival. Especially the strict limit on the number of e-cigarette devices directly touches the core commodity that businesses rely on. We recently had an exclusive conversation with a Malaysian e-cigarette store owner to gain an in-depth understanding of the confusion, struggles, and outlook for the future of frontline practitioners under the new regulations. Q: What are your specific views on the upcoming e-cigarette regulations? A: In my opinion, the main goal of the regulations is to shut down the open e-cigarette model and strictly limit the number of devices. Products with 12,000, 13,000, or even 15,000 devices that were common on the market will be banned. The maximum number of devices can only be 3,000. This is the biggest problem. Q: How will these regulations affect your inventory and sales? A: The regulations mean that half of our inventory will be directly lost, and these losses cannot be compensated by the government. As an operator, we must abide by government laws and no longer purchase those high-device-count products, only displaying compliant and licensed goods. Now we purchase 3,000-device sets at a wholesale price of XXX, selling them to customers for XXX, each device earning XX ringgit, but this also needs to deduct taxes and license processing costs. Q: Will your store be inspected? How will you respond? A: Yes, they came to inspect last month. We will display all product licenses and have adjusted the stickers and signs in the store. For example, the name of the e-cigarette store cannot be placed on the sign, we can only put the brand name outside, and all relevant stickers are placed inside the store. If customers search for "e-cigarettes" on Google Maps, we can still be found, and they will call to inquire about the specific store name. Q: What is the main business of your store at present? Is the disposable e-cigarette the main product? A: We are a mixed operation, including closed, open, and disposable products. But to be honest, currently the disposable e-cigarette is indeed our best-selling product. Many customers don't want to use devices that require filter replacements, and it's convenient to use them up and throw them away. About 40% of customers will purchase 5-10 units at a time for stockpiling. Q: You mentioned the ban on high-device-count products because the government stipulates a maximum of 3,000 devices. Are there many 3,000-device-count products? A: Currently, there aren't many 3,000-device-count products. We need to wait for suppliers to launch products that comply with the new regulations. Suppliers will also comply with the regulations, redesign and produce. Q: Who are your customers? What is the average consumption level? A: The majority are Malaysian men. They come to buy quickly, leaving in 5 minutes. The average consumption is around 60 ringgit (approximately 92 yuan), depending on the products they choose. Interestingly, many of our customers are police or military personnel, who like e-cigarettes without a smell, which is convenient to use in the car. Q: Have you heard of "nicotine pouches"? What do you think of them compared to e-cigarettes? A: Nicotine pouches are more dangerous. They cause cancer. Now on TikTok, many people are live-streaming while holding nicotine pouches, but that is something traditionally used by people in Pakistan and Bangladesh, mixed with similar marijuana leaves, and long-term use can cause cancer. There are many verified materials online. It is more harmful than e-cigarettes. I am also reporting those live-streaming for nicotine pouches on TikTok because they are also selling nicotine products. Q: If the government eventually completely bans e-cigarettes, what consequences do you think there will be? A: If completely banned, people will only switch back to smoking traditional cigarettes. E-cigarettes have been proven to be less harmful than cigarettes. There are over 3,000 e-cigarette stores in Malaysia, including employees and their families, which is a huge employment. If the government suddenly shuts down these stores, it would cause serious social problems. Q: Do you think the government is serious about regulating e-cigarettes? A: Definitely serious, but the problem is that instead of controlling e-cigarettes, it would be better to control other more dangerous things. The government is not unaware of who is illegally selling and who is not following the rules. They should manage the more dangerous goods from the source.