Fundamental Features of Vape POS in Malaysia to Stay Compliant to The Laws

Operating a vape store in Malaysia presents a unique set of challenges, with compliance with new regulations in 2024 topping the list. However, adopting a robust POS system tailored to the vape industry can simplify compliance, optimize operations, and protect your business from costly penalties.

This article examines the key features a vape POS in Malaysia must provide to provide compliance with local laws and improve your store’s operations efficiency.

Highlight: 

• The new regulations in Malaysia pose significant challenges for vape retailers, including the ban on product displays, restrictions on vape liquid volumes, and the prohibition of online sales.
• Key POS features to support retailers during this transition include age verification, regulatory-adaptive inventory management, and detailed compliance reporting to meet legal requirements.

Compliance Challenges for Vape Retailers in Malaysia Regarding the New Regulations

Malaysia’s new tobacco and vape regulations, enforced in October 2024, have introduced significant compliance challenges for vape retailers. These regulations include:

• Retail Display Ban: Retailers are prohibited from openly displaying vape and tobacco products in their stores. This means these items must be kept out of public view, which significantly impacts the visibility of these products to customers.
• Online Sale Prohibition: The sale of vape and tobacco products through online platforms has been banned, cutting off a critical sales channel for many vape retailers, particularly small businesses that rely on e-commerce to reach customers.
• Vending Machine Sales Ban: Vending machine sales of vape and tobacco products are no longer permitted, eliminating an automated sales avenue.

In 2025, the new regulations introduce the following measures:

• Prohibition on displaying vape products at shop counters.
• Limitation on the maximum volume of vape liquids to 3ml for disposable pods and cartridges, and 15ml for bottles.
• A six-month grace period for phasing out existing stock.
• Implementation of a registration fee of RM5,000 per vape product.

While the goal is to regulate the industry and protect public health, these changes have disrupted retail operations.

Challenges Vape Retailers Face Under New Regulations

Following the new regulation changes, retailers are facing new challenges.

• Adapting In-store Layouts: Retailers must redesign stores with concealed storage solutions and train staff to discreetly handle vape product inquiries.
• Loss of Online Revenue Streams: The online sales ban forces retailers to rely solely on physical stores, significantly limiting market reach and reducing sales.
• Increased Operational Costs: Compliance requires investments in store redesigns, staff retraining, and updated inventory management systems.
• Customer Awareness and Education: Retailers must educate customers about the regulatory changes through campaigns or FAQs to ensure smooth transactions.
• Legal and Administrative Compliance: Retailers must navigate additional paperwork and engage with authorities to avoid penalties and ensure full compliance.

To adapt, vape retailers should prioritize enhancing the in-store experience, leveraging loyalty programs to retain customers, and working with industry groups to share strategies. Proactive planning, such as investing in advanced POS systems, can help retailers meet these challenges head-on.

Critical Features of a Vape POS Malaysia to Ensure Compliance

Malaysia’s changing vape regulations—such as the bans on product displays and liquid volume restrictions—require businesses to be vigilant about compliance. A well-designed POS system helps retailers meet these regulations through key features like age verification, adaptive inventory management, and compliance reporting. 

Let’s go into the details now.

Age Verification Mechanisms

A core requirement for compliance is preventing the sale of vape products to minors. A vape POS system in Malaysia must have integrated age verification to stop illegal transactions. The system should prompt for ID verification during checkout, utilizing tools like barcode scanners or manual entry to confirm the customer’s age.

For instance, ConnectPOS makes it easy to verify age at the point of sale. When a customer attempts to purchase age-restricted items, the system prompts for ID verification. The POS uses barcode scanning to read the customer’s ID, automatically checking if they are of legal age. If the ID is not provided, the transaction is halted, keeping the business in line with regulations.

Moreover, ConnectPOS offers flexibility, enabling retailers to set specific age verification rules for various products. This means businesses can adjust the system based on evolving regulatory changes in Malaysia, such as different age limits for certain products.

Regulatory-Adaptive Inventory Management

Given the restrictions on vape liquid volumes and stock phase-out periods, retailers need a system that adapts quickly to these changes. A POS system should track inventory by product type, volume, and expiration dates. It should also send alerts when non-compliant stock is approaching its phase-out date.

For example, the system can notify a retailer when inventory of 3ml vape pods is low or when a batch needs to be removed to comply with the new phase-out rules. This helps businesses avoid fines and ensures they are always in compliance with the latest regulations.

Compliance Reporting and Documentation

Regular audits and documentation are critical to proving compliance with Malaysia’s vape laws. A vape POS Malaysia must generate accurate, real-time reports to track sales, inventory, and customer transactions.

The system should allow the generation of detailed reports that include information on age-verified sales, product categories, and stock movements. Customizing these reports for submission to regulatory authorities reduces errors and streamlines the audit process.

Multi-Location Sales Management

For businesses with multiple locations, maintaining compliance across stores can be difficult. A centralized POS system helps by tracking inventory, sales, and compliance at all locations, ensuring consistency.

For example, a business operating in both Kuala Lumpur and Penang can manage compliance in all locations through a single POS system. This simplifies the process of enforcing uniform policies across stores, reduces administrative tasks, and ensures compliance at every site.

Payment and Pricing Compliance

Malaysian regulations require transparent pricing and fee disclosures, such as the RM5,000 product registration fee. 

A vape POS system should automatically calculate taxes, apply product-specific fees, and provide clear, detailed receipts.

With features like automated tax calculations and clear fee disclosures, the POS helps businesses stay compliant with local pricing regulations while providing customers with transparent receipts.

Customizable Product Categories

Given the ban on retail display, retailers must rely on detailed product categorization within the POS to guide customers. A vape POS Malaysia should enable customizable product categories for easy search and selection.

Retailers can create categories like “3ml Pods” or “15ml Bottles” to simplify product management while ensuring compliance with volume restrictions.

Image a customer can inquire about a compliant vape product, and the retailer can quickly find it in the POS without displaying it physically.

How to Select The Suitable Vape POS Malaysia?

Selecting the right vape POS requires careful consideration of several factors to make sure it suits your business needs.

You can take a look at the criteria we provide below.

Firstly, it is essential to evaluate vendors based on the following criteria:

• Reputation and Experience: Look for vendors with a proven track record in the retail or vape industry. Vendors who understand the specific challenges and regulatory requirements of the Malaysian market are more likely to offer a solution that meets your business needs.
• Compliance Features: Make sure the POS includes compliance features, such as age verification, customizable product categories, and reporting tools to track adherence to local laws.
• Scalability: Consider how the POS system can grow with your business. A solution that can scale as you expand into multiple locations or product lines can save you time and money in the long term.
• Integrations: The POS system should integrate smoothly with other business tools you use, such as accounting software, inventory management systems, and customer relationship management (CRM) systems.
• Local Support: Last but not least, choosing a vendor with a local presence is vital for prompt response times and efficient troubleshooting.

ConnectPOS is a reliable choice for vape businesses in Malaysia. Known for its flexibility, ConnectPOS can be tailored to meet the unique demands of vape shops, offering features like real-time inventory management, customer loyalty programs, and seamless integration with other platforms.

With excellent local customer support and customizable options, ConnectPOS ensures your business operates smoothly and efficiently.

FAQs: Vape POS Malaysia

1. What are the main laws vape retailers in Malaysia must follow?

Vape retailers in Malaysia must comply with laws regulating product display, age verification, sales restrictions on liquids, and registration requirements, as well as a ban on online sales and vending machines.

2. How does a vape POS help with compliance?

A vape POS ensures compliance by integrating age verification, tracking restricted product sales, generating reports for audits, and providing customizable features to meet local regulations and restrictions on vape products

3. Can Vape POS systems handle multi-store operations?

Yes, Vape POS systems like ConnectPOS can manage multi-store operations, enabling centralized control, inventory management, sales tracking, and reporting across different locations, ensuring seamless compliance and efficiency.

Conclusion

With Malaysia’s recent regulatory changes affecting the vape industry, compliance has become more challenging than ever. These updates, including bans on product displays and restrictions on vape liquid volumes, require businesses to adopt robust systems that can help them stay on top of the new laws. A comprehensive POS system, with features like age verification, inventory management, and compliance reporting, can significantly streamline the process of adhering to these regulations.

ConnectPOS provides an ideal solution for vape retailers in Malaysia, offering the flexibility and tools necessary to manage these changes efficiently. Get in touch with us today to learn how ConnectPOS can support your business in navigating Malaysia’s evolving vape regulations and enhance operational efficiency.