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Southeast Asia is experiencing significant regulatory shifts in the tobacco and nicotine product sectors, as countries in the region adopt varied stances on products like heated tobacco, nicotine pouches and e-cigarettes. These developments reflect a growing focus on public health, youth prevention and economic considerations, resulting in a complex regulatory landscape for industry members.
Several Southeast Asian countries are taking stringent measures against novel nicotine products, primarily motivated by health concerns and the desire to reduce youth usage. Thailand, Singapore, Cambodia and Laos have already imposed strict bans on these products. In Thailand, authorities are intensifying enforcement, recently confiscating millions of dollars’ worth of e-cigarettes and related products to combat illegal imports and sales.
Recently, Thailand’s National Tobacco Products Control Committee introduced the “1 province, 1 hospital: helping Thais quit smoking and e-cigarettes comprehensively” initiative, which aims to enhance smoking and vaping cessation programmes. Health minister Somsak Thepsuthin has advocated for collaboration across ministries to increase youth awareness and promote prevention. The initiative is part of a broader commitment to create smoke-free environments, an effort that led to Saensuk Municipality receiving the Association of Southeast Asian Nations (ASEAN) Smoke-free Award for establishing smoke-free public spaces.
These policies highlight a strong precautionary approach but also open up the question of whether outright bans are the most effective way to reduce usage or whether they drive the market underground.
Regulatory challenges for HTPs and nicotine pouches
Heated tobacco products (HTPs) and nicotine pouches are experiencing different regulatory approaches across Southeast Asia. In Malaysia, the recent Control of Smoking Products for Public Health Act requires all nicotine and tobacco product vendors to register with the Ministry of Health. The law applies to HTPs and other novel products, creating an organised framework to monitor and manage sales in the region. As of October 2024, nearly 190 companies, including 147 vape companies, have registered under this new legislation.
Indonesia is facing challenges with proposed regulations around heated tobacco, particularly concerning plain packaging requirements. Business leaders, including Diana Dewi from the Indonesian Chamber of Commerce and Industry, have urged the Ministry of Health to reconsider these proposals, arguing that plain packaging is discriminatory against the industry. Additionally, the Ministry of Agriculture has expressed concerns over the potential impact on tobacco farmers, as the regulation could reduce demand, hurting the livelihoods of those dependent on tobacco cultivation.
Vietnam has taken a strong stance against HTPs and e-cigarettes, recently proposing a full ban on these products. During a National Assembly session, the Ministry of Industry and Trade said it had consistently rejected requests to license or register these products on e-commerce platforms.
Economic impact of regulatory shifts
The evolving regulations in Southeast Asia are generating economic ripples across the region. Indonesia, for instance, anticipates a potential $10bn loss in tax revenue if plain packaging and advertising restrictions move forward, as these measures could suppress sales. In Malaysia, the registration requirements established by the recent public health act are likely to push smaller retailers out of the market, creating a landscape that favours larger, compliant companies.
As Southeast Asia’s regulatory landscape for nicotine products continues to evolve, companies operating in this space must navigate a complex array of policies. Some countries are leaning towards embracing novel nicotine products within a regulated framework, while others are moving in the direction of outright bans. This patchwork of approaches underscores the importance of regulatory compliance for maintaining or gaining market access across the region.
For stakeholders, staying abreast of these regulatory developments is essential, as they will shape consumer behaviour, market accessibility and the long-term growth trajectory of the nicotine industry in Southeast Asia.
– Antonia Di Lorenzo TobaccoIntelligence staff
Photo: Geoff Greenwood
