THE business community today warned Malaysia could lose foreign direct investments from the electronic manufacturing sector with the introduction of the generational endgame (GEG) provision in the Control of Smoking Products for Public Health Bill 2023.

The bill was set to be tabled in parliament on Tuesday, and would reportedly maintain the GEG provision that would prohibit sale of tobacco and vape products to anyone born after 2007.

The Malaysian International Chamber of Commerce and Industry (Micci) said the GEG provision sends the wrong message to investors.

“Investors will be reluctant to invest in the country that implements the harsh ban on the industry and it will definitely deter future investments into this sector in Malaysia.

“The first investments at risk are the Health E-Atomisation Industrial Park and the Asean Health E-Atomisation Forum that were announced earlier this year in Malacca,” it said in a statement.

But Micci, the oldest private sector business organisation in Malaysia, said it supported any tobacco cessation or harm reduction efforts by the government.

“It was announced earlier this year that Malacca was set to receive RM3.5 billion investment through seven projects that will be developed in the state in collaboration with investors from China.

“It is no secret that Chinese vape manufacturers are the largest in the world and because of the growing demand in various countries, there will be expansions into this region given the potential of the vape industry here.

“But with the GEG policy, it will likely make many of the investors look elsewhere,” it said.

Micci said Malaysia would be viewed as unfriendly to business, signalling to potential investors the government was taking extreme stances without due consideration on economic impacts.

It said the government’s priorities should be to regulate and tax the vape industry. It also suggested Putrajaya decouple the GEG provision from the bill to immediately address the issue of unregulated and potentially hazardous vape liquids. – October 6, 2023.