KUALA LUMPUR, June 10 — Ispire Technology Inc. has announced that the vaporisers manufactured in its Johor factory do not contain cannabis or nicotine liquids or gels and the products are only intended for export.
The Nasdaq-listed vape company based in California, the United States, also reaffirmed its “strict compliance” with Malaysian laws and regulations.
“Ispire Malaysia operates under stringent procedures to ensure all manufacturing is 100 per cent export-oriented,” said Ispire Technology co-CEO Michael Wang in a statement issued from Los Angeles yesterday.
“We believe our operations fully comply with Malaysian law, and we are committed to transparency and regulatory cooperation at both federal and state levels.”
Ispire Technology said in its statement that the vaporiser products manufactured in its plant in Senai, Johor, have “no nicotine or cannabis content.”
“The facility produces semi-finished vaporiser hardware only, with no liquids or gels involved at any point in production.”
The cannabis and nicotine vape company added that all its products manufactured in Malaysia are not sold, distributed, or marketed in the Malaysian market.
“While the facility is capable of producing certified components, no medical devices are currently manufactured. Any future activity in this sector would follow a comprehensive regulatory review,” added Ispire Technology.
Ispire Technology did not explain why its local unit, Ispire Malaysia Sdn Bhd, is registered with the Companies Commission of Malaysia (SSM) as being in the business of manufacturing “medical and dental instruments and supplies” or why its Senai factory signboard states that it’s an “electronic medical device factory”.
CodeBlue reported earlier today the Medical Device Authority (MDA) as saying that Ispire Malaysia isn’t registered with the medical device regulator and that cannabis vaporisers are not classified as medical devices, either locally or internationally.
“The Company also noted that recent commentary referencing cannabis-related products was based on marketing materials related to Ispire’s US operations, which operate in jurisdictions where such products are legal. These materials do not reflect the nature of the Company’s business conducted in Malaysia,” said Ispire Technology.
CodeBlue’s previous reports on Ispire were mainly based on the company’s quarterly reports, investor presentations, and press releases filed with the US’ Securities and Exchange Commission (SEC). SEC filings are accessible to the public on the American federal regulator’s portal.
CodeBlue reported Ispire Technology as saying in a quarterly report and investor presentation that it is “currently able to manufacture a wide range of cannabis hardware in Malaysia and import into the US”, and that its Johor factory, which commenced production in February 2024, produces “mainly cannabis-related products.”
In its press statement yesterday, Ispire touted an investment target exceeding US$50 million (RM212 million), positioning its Malaysian unit as a “premier manufacturing hub” in Southeast Asia.
“We remain committed to upholding the highest standards of compliance, safety, and corporate responsibility,” said Wang.
Ispire’s press statement was issued after Health Minister Dzulkefly Ahmad told reporters yesterday that he would refer the issue of whether the government permits cannabis device manufacturing to the Cabinet.
Perikatan Nasional health committee head Dr Ahmad Yunus Hairi, who is also Kuala Langat MP, has called for a police investigation into Ispire’s manufacturing operations in Johor, saying that cannabis-related products are subject to the Dangerous Drugs Act (DDA) 1952 and that drugs are a national security issue.
The DDA does not only prohibit the substance of illicit drugs like cannabis, but also drug-related equipment. Malaysian drug law does not make an exemption for narcotics or drug-related products or equipment being produced for export purposes.
In a statement sent to local media today, Ispire Malaysia reportedly said that its semi-finished hardware products “do not contain any nicotine or cannabis – liquid or gel – and thus are not subject to the health ministry’s regulations under the Control of Smoking Products for Public Health Act 2024 [Act 852].”
While smoking products with nicotine are regulated by the Ministry of Health under Act 852, drugs like cannabis are regulated by the police under the DDA.
