When the Finance Minister Datuk Seri Anwar Ibrahim tabled the Federal Government Budget 2026 in Dewan Rakyat on 10th October 2025, he said that excise taxes on tobacco and alcohol products will be increased, yet he mentions nothing on e-cigarettes or vapes. This raises an important question: What exactly is the Ministry of Finance’s strategy on tackling the proliferation of e-cigarettes amongst youths?
Prior to the Budget announcement, industry players of e-cigarettes were already anticipating a review or increment on the excise duties to be imposed on their products. Just days earlier, Deputy Health Minister Datuk Lukanisman Awang Sauni had told Parliament that the Ministry of Health had proposed increasing the tax rate on e-cigarette liquids from RM0.40 to RM4.00 per millilitre, beginning next year.
The Deputy Minister further explained that, “one cigarette equals 10 puffs, and a pack of cigarettes equals 200 puffs. One millilitre of e-cigarette liquid (nicotine) equals 100 puffs, and two millilitres equals 200 puffs.”
Malaysia currently has a vibrant e-cigarette manufacturing industry and is among the region’s leading exporters of such products. According to the Malaysia Retail Electronic Cigarette Association (DPVM), the local e-cigarette industry was valued at RM3.48 billion in 2023, a 53% increase from RM2.27 billion in 2019.