Southeast Asia

Indonesia's Ulema Council (MUI) published Fatwa No. 131/2026 on November 9, declaring electronic cigarette use, production and trade haram under Islamic religious rules. The council urged the Industry Ministry to prohibit the issuance of vape industry permits and review licensing policies, while calling on the president and parliament to enact a comprehensive ban. On November 10, the Constitutional Court heard a challenge to provisions of the 2023 Health Law seeking a prohibition on vape production, importation, distribution and use. The Health Ministry said on November 11 it was studying stronger restrictions, including a possible ban on circulation, while industry association APVI called for tighter oversight rather than a total ban. Indonesia's Industry Ministry previously estimated the sector comprises about 200 companies, Rp31 trillion ($1.7 billion) in cumulative investment and approximately 100,000 supply-chain jobs. No nationwide statutory ban has been enacted.

US-listed vaping technology and manufacturing company Ispire Technology reported fiscal first-quarter 2027 revenue of $27.5 million on November 9, 2026, down 9.3% year over year but up 3.2% sequentially. Gross margin recovered to 16.2%, while its net loss widened to $6.4 million from $3.3 million a year earlier. Management attributed the sales decline primarily to tighter European vaping regulation and reduced distributor orders. Ispire is expanding manufacturing in Malaysia and negotiating an OEM/ODM agreement with a Southeast Asian vaping brand, with an announcement anticipated in January 2027. The company estimates that Malaysian manufacturing offers an approximately 25% US tariff advantage over China-based production. However, it continues to purchase products from Shenzhen Yi Jia Technology Co., Ltd., a manufacturer controlled by its chairman, and reported $52 million in non-current related-party payables at September 30.

Indonesia's Ministry of Industry said at a November 3, 2026, policy forum that the country has about 200 electronic cigarette companies, Rp31 trillion (approximately $1.71 billion) in cumulative industry investment and around 100,000 jobs across the supply chain. The National Narcotics Agency is seeking a comprehensive ban on vape use and circulation, while the industry ministry favors tighter import, product-standard and distribution controls. Indonesia exported approximately $518 million in vaping products in 2025, and Chinese manufacturers including Smoore, GEEKVAPE and Jinjia Group have established local operations. An international logistics specialist interviewed by 2Firsts said more Chinese vape companies began production in Indonesia from the second half of 2025, accompanied by increased shipments of manufacturing equipment and investment in logistics facilities. The regulatory debate comes as Indonesia expands its role in international vaping manufacturing.

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