On July 31, according to foreign news reports, for decades, e-cigarettes have helped smokers quit smoking, provided people with harm-reducing alternatives to cigarettes, and created a prosperous market worth billions of ringgits globally. However, it is no secret that Malaysia is making slow progress in obtaining the public health and economic benefits that the e-cigarette industry can provide.

Local media reported that Malaysia’s economy is suffocating. As the new crown crisis swept across the coast in 2020, the country's unemployment rate jumped to 5.3%, and it is estimated that about 2 million jobs will be lost by the end of 2021-putting the local economy in trouble.

Although the government has mitigated the effects of the collapse through wage subsidies, cash distribution to disadvantaged groups, and support for small businesses (SMEs), these short-term solutions have put further pressure on the already weak national finances.

The budget deficit of more than 20 years has exhausted the national treasury. Considering how the country's tax revenue is expected to decline after household income and corporate profits in multiple sectors have fallen, the government has little room for maneuver.

In addition, the 2018 decision to replace goods and sales tax (GST) with sales and service tax (SST) resulted in a revenue shortfall of RM20 billion, indicating that the current tax system is unlikely to produce the desired results.

The official report of the Ministry of Health (KKM) shows that there are more than 1 million e-cigarette users in Malaysia, but the regulations on their use have not yet been implemented-leaving consumers and businesses in the dark.

Just like how e-cigarettes can replace smoking, if properly regulated, the industry also has the potential to greatly supplement the local economy.

Not only is the e-cigarette industry capable of creating jobs for thousands of Malaysians, but the market can also achieve considerable financial growth by cultivating new and old SMEs that are attractive to local and foreign investment.

From a global perspective, the e-cigarette industry has taken a place in the market, providing multinational companies and investors with something to chew, thereby providing an opportunity to expand the inflow of foreign direct investment (FDI).

The current consensus also shows that most people agree to regulate the e-cigarette industry in Malaysia.

The Malaysian Electronic Cigarette Industry Advocacy Organization (MVIA) conducted a survey of insights and opinions on e-cigarettes in Malaysia in 2021. 80% of the public hope that the government will supervise the e-cigarette industry in the country. At the same time, citing taxes collected from the market will generate The much-needed funds are used for public purposes, such as improving infrastructure and education.

Regulation of the e-cigarette industry may herald the arrival of Malaysia’s first ever commercial unicorn, as local companies such as NSTY Worldwide Sdn Bhd have proven to be able to dominate the domestic market and become trendsetters around the world.

NSTY founder Sharifuddin Bujang also expressed his optimism about promoting the brand to become a major player in the global e-cigarette industry in order to compete with China.

Through government support and supervision, NSTY and other emerging local entrepreneurs are fully capable of making Malaysia a major member of the international e-cigarette community, and ultimately creating wealth and prosperity for the country.

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