Ispire Malaysia denies domestic vape sales, reaffirms export-only operations
KUALA LUMPUR: Nasdaq-listed Ispire Technology Inc's subsidiary, Ispire Malaysia Sdn Bhd, has clarified that all its vaporiser hardware manufacturing activities are strictly for export purposes, amid public scrutiny and recent reports suggesting otherwise.
In a statement, Ispire emphasised it manufactures only semi-finished hardware devices and does not handle any nicotine or cannabis substances in Malaysia, with all production shipped abroad and not marketed or sold domestically.
"We take this matter seriously and strictly adhere to all regulatory and licensing requirements, including the Control of Smoking Products for Public Health Act 2024 (Act 852).
"These products do not contain any nicotine or cannabis – liquids or gels – and thus are not subject to the Health Ministry regulations under the Act 852," it said in a statement released this week.
The clarification follows after recent articles reported Ispire had received Malaysia's first federal nicotine manufacturing licence in May.
The development raised questions among lawmakers and the public, particularly due to vape product sales remain banned in several Malaysian states, including Johor.
The Health Ministry (MOH) responded by confirming that the licence, issued by the Investment, Trade and Industry Ministry through the Malaysian Investment Development Authority, does not equate to permission to sell vape products locally.
"The MOH has never approved any registration for the product for the local market. Any party intending to import, produce, or distribute smoking products locally must apply for product registration with the ministry."
Ispire is involved in the research and development, design, sales, commercialisation, marketing, and distribution of vaping products and its own branded e-cigarettes.
The interim licence granted to Ispire allows it to commence production of its products in Johor, which has banned vape sales since 2016.
Ispire said its operations fully comply with all Malaysian laws and that any production involving nicotine would only occur upon approval from both state and federal regulators and will remain strictly for export.
The company also highlighted its innovations in consumer protection technologies, including a blockchain-based age-gating system and geo-fencing technology to prevent underage or unauthorised usage.
The Johor plant currently operates seven production lines, with plans to expand up to 80 lines following final regulatory approvals.
The US$50 million investment into the Johor facility forms part of Ispire's strategic relocation of manufacturing from China to Malaysia to serve international markets such as the United States and the United Kingdom.
"Our Malaysian operations focus exclusively on vaporiser hardware production, which is shipped empty for export only, with no nicotine or cannabis substances at any stage of the manufacturing process," it concluded.
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