Malaysia's MMA Demands Answers on Nicotine Exemption as Vape Ban and RM354 Million Tax Dispute Collide

A renewed exemption proposal puts vape policy under scrutiny

The Malaysian Medical Association (MMA) is demanding an explanation from Health Minister Dzulkefly Ahmad over a proposal to exempt liquid nicotine from the Poisons List again, months after the Kuala Lumpur High Court overturned the previous exemption in May 2026.

The dispute now reaches beyond whether vape liquids can be sold in ordinary shops. The government withdrew its appeal against the judgment on August 18, lawmakers are seeking refunds of more than RM354 million in vape duties, and the administration had targeted a nationwide vape ban in 2026.

MMA president Dr L Sivanaesan, whose full name is Dr Sivanaesan Letchumanan, said the proposed exemption appeared to conflict with that promised direction. He wants the minister to explain its public health justification and give a clear timetable for banning vape products.

The Malaysian Pharmacists Society has confirmed that the Poisons Board supported the new proposal. Its deliberations were confidential. A fresh exemption would require the minister to issue an order and publish it in the Gazette, the official record used to give legal effect to such decisions.

Sivanaesan, speaking as MMA president, called for an immediate explanation:

We call on the health minister to urgently clarify the matter and explain the public health justification for the proposed exemption.

Why the 2023 decision was overturned

Former health minister Dr Zaliha Mustafa exempted liquid and gel nicotine used in vaping products from the Poisons List in 2023. The government argued that bringing the industry out of the black market would allow it to monitor businesses and collect tax.

The Poisons Board opposed that exemption, according to Sivanaesan. Public health groups also challenged the decision, bringing the dispute before the Kuala Lumpur High Court.

In May 2026, the court found the exemption unlawful, including because consultation with the Poisons Board had been inadequate. It described the decision as irrational and found that economic considerations, particularly plans to tax liquids containing nicotine, had primarily driven it.

The court also identified a regulatory gap between the 2023 exemption and the start of the Control of Smoking Products for Public Health Act 2024 on October 1, 2024. Nicotine had been removed from the poisons framework before the replacement framework for smoking products took effect.

The government's withdrawal of its appeal left that judgment in force. Liquid and gel nicotine used in vaping products consequently returned to controls under the Poisons Act 1952, including the Group C poison framework, which generally limits supply to legally defined medical or pharmacy channels.

How the dispute reached this point

Malaysia's current disagreement combines decisions taken over more than three years. The sequence explains why the new proposal is drawing scrutiny over both legal procedure and the government's intentions.

• 2023: Zaliha exempted liquid and gel nicotine used in vaping products from the Poisons List. Nicotine vape excise collection began in April that year.
• October 1, 2024: The Control of Smoking Products for Public Health Act 2024 and its implementing regulations came into operation.
• May 2026: The Kuala Lumpur High Court struck down the 2023 exemption.
• June 2026: Dzulkefly acknowledged that dangerous synthetic drugs found in vape products provided strong grounds for a nationwide ban.
• July 2026: The Home Ministry disclosed seizures and arrests involving vape products suspected of containing prohibited substances.
• August 18, 2026: The government withdrew its appeal against the High Court ruling.
• August 26, 2026: Dzulkefly said the Health Ministry would explain the appeal withdrawal.
• September 2, 2026: Two MPs called for nicotine vape retail sales and excise collection to stop.

The proposed return to an exemption follows those developments. For MMA, the central issue is whether the government is preparing to keep a commercial nicotine vape market or still intends to close it through a nationwide ban.

Two laws now shape the market

The Poisons Act controls nicotine as a substance. The Control of Smoking Products for Public Health Act 2024, known as Act 852, regulates smoking products, including vaping products. Businesses must understand how both sets of obligations apply to their products.

Act 852 defines a smoking substance broadly. Its definition includes nicotine, propylene glycol, glycerol and triethylene glycol. This gives the smoking products framework a wider reach than nicotine alone.

The Tobacco Control Laws directory identifies Act 852 as Malaysia's primary tobacco control legislation. It lists regulations governing sales, product registration, packaging and labelling, as well as rules for areas where smoking is prohibited.

Ordinary retail access to liquid nicotine therefore depends on its status under the poisons framework alongside the requirements governing the finished vape product. The new exemption proposal seeks to change the nicotine side of that arrangement.

As of September 4, the government had not issued a final public explanation of how the two laws should operate together following the appeal withdrawal. The reported Poisons Board endorsement also leaves publication of a fresh exemption order as a necessary legal step before ordinary commercial sales can resume under that route.

The law already provides powers to restrict products

Section 21 of the Control of Smoking Products Act gives the health minister a route to prohibit or restrict products during an acute or critical situation that seriously endangers lives, health or safety.

The procedure begins with advice from the Director General. The minister may then establish a committee to coordinate action and advise on the situation. If satisfied that the danger meets the legal threshold, the minister may act on that committee's recommendation through an order published in the Gazette.

Such an order can prohibit or restrict importation, manufacturing, distribution or sale, with conditions set by the minister. The provision links those powers to a specified health emergency assessment and decision process.

Act 852 also spells out obligations for businesses already operating when the relevant registration provisions began. Section 54 requires existing importers, manufacturers and distributors covered by the transition to apply for registration within six months of commencement.

If the Director General rejects an application, Section 54 requires the business to recall its products and stop their sale at its own expense. Registration decisions can therefore carry direct costs for stock already produced or distributed.

Drug seizures add pressure for a ban

The Home Ministry disclosed in July that authorities had seized 718.43 kilograms of vape products suspected of containing prohibited substances between 2023 and June 2026. The cases involved 585 arrests across 400 investigations.

Those figures are central to MMA's demand for stronger action. The association says vape devices are increasingly being used to consume dangerous illicit substances, extending its concerns beyond dependence on nicotine.

Sivanaesan warned of possible drug dependency, serious medical complications, pressure on health services and public safety problems. His argument is that regulating nicotine sales alone cannot address the full range of substances being consumed through vape devices.

Dzulkefly had himself acknowledged in June that the discovery of dangerous synthetic drugs in vape products provided strong grounds for a nationwide ban. MMA is now asking how that position fits with a proposal that would reopen an exemption for nicotine liquids.

Children and young people remain a central concern for the association. Nicotine is highly addictive, and MMA says preventing another generation from becoming dependent on it should take priority over maintaining commercial sales.

RM354 million in duties becomes another dispute

Petaling Jaya MP Lee Chean Chung and Kuala Langat MP Dr Ahmad Yunus Hairi called on September 2 for ordinary nicotine vape retail sales and excise collection to stop following the court ruling and appeal withdrawal.

Lee also demanded refunds of more than RM354 million in duties collected since April 2023. He said the amount was continuing to grow by about RM8 million a month.

At that monthly rate, another year of collection would add roughly RM96 million. That calculation shows why the timing of a government decision matters financially, alongside the immediate questions about sales.

Lee cited an affidavit from Treasury secretary general Johan Mahmood Merican in the court proceedings. According to Lee, it stated that cancelling the nicotine exemption would affect the basis for collecting excise on the substance. Excise is a tax charged on particular goods.

The refund remains a demand from lawmakers. A government decision on repayment, and any final amount, was still pending in the September 4 account of the dispute.

Businesses seek clarity on stock and compliance

The Malaysian Vape Chamber of Commerce argues that businesses have invested in meeting Act 852 requirements and need a stable regulatory framework. The Malaysian Vapers Alliance has also called for clear rules and continued enforcement of that law for adult consumers.

For businesses, the uncertainty reaches into registered products, imports, raw liquid nicotine and stock on which duties have already been paid. A change in the legal position can affect whether those goods may be distributed or sold and how businesses handle existing commitments.

The Malaysian Electronic Vaporisers and Tobacco Alternative Association has previously requested a transition of at least six months if the government introduces a vape ban. It says businesses would need time to deal with inventory, imports, raw materials and commercial arrangements.

MMA takes a different position on the desired destination. It wants the market eliminated through a nationwide ban, rather than maintained through regulation. The competing demands put immediate pressure on the government to explain both the rules applying now and the policy it intends to implement.

The minister faces decisions on permission and prohibition

Dzulkefly has said the government was studying a phased nationwide vape ban. MMA says the administration had targeted 2026 and wants that commitment reaffirmed with an implementation timetable.

A new nicotine exemption and a future ban would operate through different decisions. The exemption would change the treatment of liquid nicotine under the poisons framework. A ban would require the government to specify what products and activities it intends to prohibit, through which legal powers and from what date.

The Poisons Board's reported support is a change from its opposition in 2023. Its confidential deliberations leave the public without an explanation of why it supported the new proposal. MMA is asking the health minister to provide the health reasoning behind the decision.

Malaysia's immediate task is to settle the relationship between the court judgment, nicotine controls and Act 852. Its broader policy choice is whether regulated sales are an interim arrangement before a ban or the model the government intends to retain. Retailers, consumers and health services need concrete instructions as those decisions take shape.

Key Points

• MMA wants Dzulkefly Ahmad to explain the proposed liquid nicotine exemption and provide a timetable for a nationwide vape ban.
• The Poisons Board reportedly endorsed the new proposal, with its support confirmed by the Malaysian Pharmacists Society.
• The High Court overturned the 2023 exemption in May 2026. The government withdrew its appeal on August 18.
• Act 852 regulates vaping products and provides powers to restrict or prohibit products during an acute or critical health situation.
• The Home Ministry recorded 718.43 kilograms of suspected prohibited substance vape products seized, with 585 arrests across 400 cases, from 2023 to June 2026.
• Lawmakers are seeking an end to nicotine vape excise collection, and Lee Chean Chung has demanded refunds exceeding RM354 million.
• A fresh exemption requires a ministerial order published in the Gazette. MMA is also seeking a clear date for the promised ban.