Kuala Lumpur, April 28, 2025 – In a significant development for the vape industry in Southeast Asia, British American Tobacco Malaysia (BAT Malaysia) has officially announced it will phase out its E-cigarette brand Vuse from the Malaysian market by the third quarter of 2025. The decision follows the enactment of Malaysia’s newly implemented Control of Smoking Products for Public Health Act 2024 (Act 852), which introduces stricter regulations on vapor and E-cigarette products.

Regulatory Changes Prompt Market Withdrawal

The new law, Act 852, aims to tighten enforcement around vape and vapor products, especially to curb their use among minors. Malaysia’s Health Minister, Datuk Seri Dzulkefly Ahmad, confirmed last week that the government will actively enforce the Act by increasing inspections and penalties to ensure public health standards are met.

For BAT Malaysia, this means pulling its only E-cigarette offering — Vuse — from store shelves nationwide. While this marks a complete withdrawal from the Malaysian vape market, the company stated that it would continue distributing its traditional combustible tobacco brands, including Dunhill, Peter Stuyvesant, Rothmans, KYO, and Luckies.

“We expect the withdrawal of Vuse to have a minimal financial impact on our overall performance for the financial year ending December 31, 2025,” the company said in an official statement.

Vuse: A Global Brand Faces Local Challenges

Vuse, a leading global E-cigarette brand, is currently one of the most recognized names in the vapor market, especially in Western countries. Its exit from Malaysia reflects the growing tension between multinational vape brands and emerging public health policies in Southeast Asia.

Malaysia’s regulatory stance has shifted dramatically over the past few years as concerns about youth access to Fruit Flavored Vapes and nicotine addiction intensify. The new legislation is seen as a proactive response to these concerns.

In recent years, vapor products — especially Fruit Flavored Vapes — have surged in popularity among young users in Malaysia. The government now sees stronger legislation as crucial to protect vulnerable populations and bring the E-cigarette industry under more accountable oversight.

Key Provisions of the 2024 Smoking Products Control Act (Act 852)

The newly passed Act 852 introduces several sweeping reforms:

• Ban on Sales to Minors: Retailers are prohibited from selling vape and E-cigarette products to individuals under 18.
• Advertising Restrictions: All forms of advertising, sponsorship, or promotional activities involving vapor products are banned.
• Product Registration and Licensing: All manufacturers and importers must register their vape products with the Ministry of Health and obtain valid licenses.
• Flavor and Packaging Regulations: The use of youth-attractive packaging and flavors such as sweet or fruity varieties will face greater scrutiny.

These measures aim to limit youth exposure to Fruit Flavored Vapes, which are often seen as gateways to nicotine use.

BAT Malaysia’s Strategic Shift

BAT Malaysia’s exit from the vape sector aligns with a broader shift in how multinational tobacco companies are navigating regulatory tightening across Asia.

By withdrawing Vuse from the Malaysian market, BAT demonstrates compliance while repositioning its long-term strategy toward more stable regulatory environments. The company has emphasized that its core revenue streams will remain focused on traditional tobacco products, at least in Malaysia.

However, globally, BAT remains committed to its “A Better Tomorrow” strategy, which includes investing in reduced-risk products like vapor devices and E-cigarettes. The company is likely to focus future efforts on markets with clearer or more supportive regulatory frameworks for vape innovation.

Implications for Malaysia’s Vape Market

The departure of Vuse could leave a significant gap in Malaysia’s premium vape product offerings. As a trusted international brand, Vuse had been seen as a safer and more regulated alternative to the myriad of unbranded or counterfeit vapor products currently circulating in Malaysia’s gray market.

With stricter laws now in place, local consumers may turn to smaller, less regulated brands — a move that public health experts warn could backfire if those products lack proper testing or certification.

“The concern is not just about access, but about what consumers are actually inhaling,” said Dr. Noriza Yusof, a public health researcher specializing in vape and E-cigarette use in Southeast Asia.
“Without trusted brands like Vuse, there’s a risk that users will seek out unregulated Fruit Flavored Vape products that may contain harmful ingredients.”

Youth Usage and Flavor Controversy

One of the biggest catalysts for Malaysia’s legislative change is the rapid rise in vape usage among minors, particularly driven by flavored E-cigarettes. Fruit Flavored Vapes, often resembling candy or dessert, have attracted criticism for allegedly targeting underage users.

The Ministry of Health’s recent surveys found that vape usage among high school students increased by 30% between 2021 and 2024. More than 65% of teen vape users reportedly preferred Fruit Flavored Vapes, indicating a direct correlation between flavor offerings and youth uptake.

Act 852 is designed to cut off this appeal by restricting flavor variety and enhancing product labeling to reflect the risks associated with vapor consumption.

International Reactions and Industry Response

BAT Malaysia’s decision could influence other international companies operating in Malaysia. Several smaller importers and local manufacturers have expressed uncertainty about how the law will be enforced and whether they will be able to continue operations under the new regulatory regime.

Globally, similar regulatory trends are unfolding. The UK and US have both introduced legislation targeting Fruit Flavored Vapes and underage access. In Australia, E-cigarette imports were heavily restricted starting in 2024, and Taiwan recently expanded its flavor ban.

The vape industry is watching Malaysia’s developments closely as a model for how middle-income countries can legislate vapor product control while balancing adult consumer choice.

What’s Next for Vapers in Malaysia?

With Vuse exiting the market, Malaysian vape users may face reduced product variety and higher prices due to tighter supply. The Ministry of Health has advised consumers to purchase only approved and registered vapor products to ensure safety and compliance.

Meanwhile, advocacy groups are calling for more public education campaigns to help users understand the risks of unregulated E-cigarettes and avoid harmful alternatives.

Conclusion: A Cautionary Turning Point for Vape Brands

British American Tobacco’s strategic retreat from the Malaysian vape market signals more than a regulatory compliance move — it is a harbinger of things to come in global vapor policy. As countries tighten restrictions on E-cigarettes and Fruit Flavored Vapes, international brands must adapt or withdraw.

For adult consumers and independent vape retailers, the coming months will likely be turbulent. Yet, they also present an opportunity: to advocate for fair, balanced regulation that protects youth while supporting harm-reduction alternatives for smokers.

As Malaysia takes its next steps in public health policy, one thing is clear: the era of unregulated vape growth is coming to a close, and a new chapter of accountability and oversight has begun.

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