KUALA LUMPUR, June 12 — US-based vape hardware manufacturer Ispire Technology Inc. is using market trends in the nicotine sector to forecast the next wave of cannabis product innovation, as the company expands its manufacturing footprint in Malaysia.
Speaking at the Benzinga Cannabis Capital Conference in Chicago, Illinois, Ispire Technology’s Vice President of Sales John Monds said the company’s multi-sector exposure allows it to track emerging device formats and features well before they reach the cannabis industry.
“We do operate in the nicotine space and the hemp space. So we see the trends start in nicotine, then move their way to the hemp space, and then eventually the cannabis space,” Monds said during a panel session on ancillary businesses in cannabis on Tuesday.
“We do have a future look into what is actually happening, what the form factors are looking like, what the technology is and it’s super helpful for us and super helpful to our clients to be able to give them that insight.”
Monds said Ispire Technology monitors these trends as part of its product development strategy, which can take months to bring new devices to market.
“You know, obviously that [crystal ball] doesn’t exist. So we are using data that we’re getting from the nicotine space to then feed into the hemp space, and then that data from the hemp space to then feed into cannabis space,” he said.
Vape Devices Could See Screens, Controls, And Customisation
One recent example is the adoption of palm-style vape devices that first became popular in nicotine vaping, entered hemp markets about two years ago, and are now gaining traction in cannabis.
“You’re seeing that come now, with a lot of brands dropping, you know, palm-style devices now,” Monds said.
Monds said future trends could see more advanced cannabis vape hardware that offers greater device customisation and functionality.
“As funny as it is, we are seeing devices with video games on them and things like that. I think it can be a little more gimmicky. But we do see a lot of that technology coming in where it’s like, think about having your iPhone and you didn’t have a battery meter on there — wouldn’t that drive you crazy, with no idea when it’s gonna run out?
“So the same thing’s happening in the vape space. Eventually, I do feel like people are going to want a screen on every device, because they want to see their battery levels, they want to see different information like that,” Monds said.
Ispire Shifts Production To Malaysia Amid Tariff Pressures
While cannabis remains illegal in Malaysia, Ispire Technology is tapping the country as a key manufacturing hub to navigate global supply chain challenges and mitigate the impact of trade tariffs affecting its international operations.
“When you look at things like tariffs, the changes, and how we’re bringing in products, that becomes a huge obstacle. So we looked into other factories in other countries outside of China, and opened ground in Malaysia to make sure that we’re combating all those issues. But that’s constantly a battle we’re doing,” Monds said.
In May, Ispire Technology became the first company to receive a nicotine manufacturing licence from the Malaysian government, allowing it to produce vaping devices and nicotine e-liquids under the Control of Smoking Products for Public Health Act 2024 [Act 852].
The Nasdaq-listed company operates its Malaysian production through its local subsidiary, Ispire Technology (Malaysia) Sdn Bhd, at its manufacturing facility in Senai, Johor.
CodeBlue previously 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.”
The company has since clarified that its Malaysian-made vaporisers do not contain cannabis or nicotine liquids and that all of its semi-finished vaporiser hardware manufactured in Malaysia are intended for export.
Diversified Product Mix Shields Vape Business From Cannabis Volatility
Monds said Ispire Technology’s diversified product mix across nicotine, hemp, and cannabis provides a more stable business model compared to cannabis cultivators and retailers, which are often restricted to single state markets and face persistent financing constraints.
“Cannabis money gets dried up very quickly. I was with a company in California called HERBL, and I remember the end — couldn’t get money, and they ended up going under because of that. It’s a lot more sound on the ancillary side of the business,” Monds said.
“Especially in vape, we have the nicotine space which is very predictable. Cannabis is a little more challenging there. Forecasting is, at times, not the best but we’re able to do a well enough job that we could be predictable on what our revenue’s going to be and it’s a safer space as far as investments go.”
Health Minister Dzulkefly Ahmad told reporters Monday 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.
