KUALA LUMPUR, May 28 — The Galen Centre for Health and Social Policy expressed shock today at the government issuing an American e-cigarette and cannabis vape company an interim federal nicotine manufacturing licence in Malaysia.
Galen Centre chief executive Azrul Mohd Khalib pointed out that just last week, Health Minister Dzulkefly Ahmad, Ministry of Health (MOH) disease control deputy director Dr Noraryana Hassan, and Malaysian Council for Tobacco Control (MCTC) chairman Dr Murallitharan Munisamy received the World Health Organization’s (WHO) highest award in recognition of their contributions to tobacco control efforts at the 78th World Health Assembly in Geneva, Switzerland.
“Now we suddenly have this news. Replacing cigarette manufacturing facilities and tobacco plantations with nicotine vape and vaping hardware factories was not likely what WHO had in mind,” Azrul said in a statement.
“This is a whiplash moment.”
CodeBlue broke the story yesterday on a May 22 announcement by Ispire Technology Inc., a Nasdaq-listed company based in the United States, about securing Malaysia’s first exclusive federal nicotine manufacturing licence this month on an interim basis.
The licence approved by both the federal and Johor state governments supposedly allows Ispire – which operates an e-cigarette and cannabis vaporiser factory in Senai, Johor – to be the only company with full authorisation for export, import, and production of nicotine products in Malaysia.
Azrul noted that the Malaysian Investment Development Authority (MIDA) requires applicants to obtain a “No Objection Letter (NOL)” from the host state government – in this case, Johor – prior to the issuance of an interim letter of manufacturing licence.
“Did the Johor state government unknowingly approve the establishment of a major manufacturing facility run by a US-based company which not only produces vaporisers, cartridges, pod systems, disposables, and batteries for vaping nicotine, but which are also used for cannabis vaping?” Azrul asked.
The Galen Centre also asked who issued Ispire a nicotine vape manufacturing licence at the federal level and when.
According to Ispire’s March 2025 report to investors, the total capacity of the Senai facility – expected to begin Phase Two operation late this year – will reportedly reach 61 million devices or 107 million pods per month, with up to 70 production lines.
“This is a major manufacturing facility for e-cigarettes and vaping products,” said Azrul.
“Even if only the vapour hardware, such as vaporisers used for cannabis vaping, are being manufactured at the Senai facility, the Johor and federal governments must ask themselves a fundamental question: Are they comfortable with Malaysia being known as one of the world’s leading manufacturers and exporters for e-cigarettes and vaping hardware for nicotine and cannabis?”
“This action runs contrary to the Johor state government’s own actions in 2016 which were way ahead of its time, banning retail business licences for vape and e-cigarettes, almost a decade before the current demand for states to do so.”
The Galen Centre further demanded clarity about Ispire’s fully-owned Malaysian subsidiary, Ispire Malaysia Sdn Bhd, describing itself as a manufacturer of “electronic medical devices”. Ispire Malaysia’s company registration with the Companies Commission of Malaysia (SSM) describes itself as manufacturing “medical and dental” instruments and supplies.
“This is a highly regulated space for which this country maintains among the highest regulatory quality standards in the Asia region,” said Azrul.
“The Medical Device Authority (MDA), a federal statutory agency under the Ministry of Health, has never declared vape products, nicotine or otherwise, as medical devices. This claim will certainly cause confusion and undermine Malaysia’s regulatory policies in this area.”
PPPKAM: Nicotine Manufacturing Licence Contradicts Spirit Of Act 852
The Malaysian Public Health Physicians’ Association (PPPKAM) expressed serious concern with the interim issuance of Malaysia’s first federal nicotine manufacturing licence to Ispire.
The doctors’ group also questioned how a foreign company that also produces cannabis-related products could get such approvals, branding the government’s decision as not only violating public health but also social morals.
“This move is seen as contradicting the spirit of the Control of Smoking Products for Public Health Act 2024 (Act 852) that was enacted to tighten controls of nicotine products to protect public health, especially for vulnerable groups like children and teenagers,” PPPKAM president Prof Dr Jamalludin Ab Rahman said in a statement.
Former PPPKAM president Dr Zainal Ariffin Omar, in commenting on Facebook about CodeBlue’s report on Ispire, called for a “total ban” on vape products if Prime Minister Anwar Ibrahim, Dzulkefly, and Cabinet had the political will to do so.
Mythbusters Public Health Malaysia questioned if Ispire’s nicotine manufacturing licence was approved by Cabinet or the Johor state executive council.
“Just let the Health Ministry approve whatever vape product applications or registrations,” said the public health Facebook page sarcastically.
“This factory is so great that it could get a nicotine licence despite producing cannabis products too. While MOH heroes and heroines won awards, this factory won a licence.”
Many Malaysians slammed the government on X too. A person highlighted the contradiction between telling state governments to ban vape while giving an American company the first licence in Malaysia to manufacture vape products.
“So this is really just to open up the vape industry to foreign companies, not for health reasons right?”
