GEG Will Have A Wider Impact On The Malaysian Economy
Pankaj also added that the RM2.49 billion vape industry which involves thousands of SMEs and local entrepreneurs with over 30,000 direct and indirect workers would also be affected by the GEG measure
KUALA LUMPUR, 2 March 2023 – A local think tank believes that the Generational Endgame (GEG), will have a wider impact on the economy, resulting in job losses, business closures, and deterring future investments.
Pankaj Kumar, Managing Director of Datametrics Research and Information Centre (DARE), said, “The impact of GEG goes beyond just health. Such prohibitive policy will have alarger negative impact on the overall economic ecosystem.”
“Businesses, be it manufacturers, importers, distributors, or retailers, will be impacted in the long run. Many legitimate businesses will gradually close down, which will increase the unemployment rate. International and domestic investors will be affected as Malaysia will be perceived to be a restrictive countryfor investments as this measure sets a dangerous precedent.”
Unnecessary Compliant Costs
“In addition, there will also be more complexity in the retail sector and creating unnecessary compliance costs. Enforcement will be very challenging and illegal products will flourish, rendering the introduction of the GEG policy redundant. This will also result in lower revenue and cause leakages.”
Pankaj also added that the RM2.49 billion vape industry which involves thousands of SMEs and local entrepreneurs with over 30,000 direct and indirect workers would also be affected by the GEG measure.
“The local vape industry has grown from 2019 to 2022 in tandem with a global trend where more and more smokers are switching to vape products. The vape industry has already an established ecosystem with multiple industry players and thousands of workers. This is a fact that cannot be avoided or denied. The introduction of GEG for the vape industry will impact the local businesses and Malaysian workers greatly.”
“There is much more at stake here. With the current economic climate and Malaysia’s debt level nearing RM1.5 trillion, the Government must focus on stepping up its game in raising revenue and attracting investments, rather than implementingpolicies like GEG.
“The Government also needs to act quickly to regulate and tax the vape industry by amending current laws, instead of looking at tabling a new bill that will take time to go through its legislative process. This will enable the Government to put in place immediate controls on an unregulated and untaxed industry,” concluded Pankaj.
Kazi Mahmood
