Making better choices: Heavier taxes for beverages with higher sugar content could push manufacturers to reformulate products with reduced sugar levels. — FAIHAN GHANI/The Star
PETALING JAYA: Revenue generated from “healthy” taxes in Budget 2025 should be used to increase the affordability of healthier food options, say public health experts.
Universiti Putra Malaysia’s Prof Dr Norhasmah Sulaiman said heavier taxes for beverages with higher sugar content could push manufacturers to reformulate products with reduced sugar levels.
“Tax revenue can then be used to subsidise or promote healthier drink options, like unsweetened beverages or sugar-free alternatives, making them more accessible.
“Partnerships should also be encouraged between beverage manufacturers from large businesses, as well as SMEs, to reformulate products with less sugar,” she said.
Reducing the availability of sugary drinks in schools can also have a long-term impact, she said, adding that private schools too should be no exception when it comes to related policies and guidelines in school canteens.
“The size of products impacted by the sugar-sweetened beverages tax (SSB) should also be regulated,” she said.
Prof Norhasmah said in the face of rising food prices and tougher economic conditions, ensuring food security would be important.
“This is so that consumers have access to affordable and nutritious food. Without this, many households may face malnutrition, undernutrition and overnutrition due to reliance on cheaper, low-nutrient foods which can lead to long-term health problems,” she said.
Holistic health expert Datuk Dr M. Rajen said tax revenue generated through the SSB could be used to subsidise daily food options like fresh vegetables and fruits.“It should go towards promoting healthier living, which in turn is a long-term investment for healthcare.
“The ministry too must help consumers make healthier choices, which could mean extra costs.
“However, food should not be seen solely for its price but rather as an investment for long-term health,” said the founder of the Holista Group of Companies.
Rajen proposed that the government remove the imposition of the sales and service tax on National Pharmaceutical Regulatory Agency-approved supplements.
“At the same time, these items should also be eligible for consumers to include in their tax relief for the coming year,” he added.
Public health medicine specialist Prof Dr Sharifa Ezat Wan Puteh said better screenings against NCDs, and reducing smoking and alcohol consumption, should be prioritised under Budget 2025.
She also urged businesses to charge cheaper prices for sugarless or sugar-free products.
Prof Sharifa highlighted the presence of hidden sugars in sauces, condiments, energy bars, sports drinks and more.
“Sometimes, there is also no labelling to indicate the sugar content and amounts of artificial sugar in the contents,” said Prof Sharifa, who is with Universiti Kebangsaan Malaysia.
Federation of Malaysian Consumers Associations chief executive officer Saravanan Thambirajah said any tax increase must consider its impact on consumers.
“A well-defined implementation strategy, public education on healthy living and affordable choices should accompany the taxes so that they do not simply increase the cost of living without promoting meaningful behavioural change,” he said.
Consumers Association of Penang research officer S. Mageswari said limiting the increased tax to solely sugary beverages may drive people to alternative sources of sugar, citing items like ice cream and biscuits.
“That could still lead to overconsumption of sugar and drive consumers to addiction.
“As the increased tax is to curb obesity, diabetes and other health problems, it should focus on taxing high-sugar foods, including drinks where sugar is added,” Mageswari added.
A retiree, David Tan, 66, proposed for SSB-generated revenue to be used to make public parks and recreation areas more accessible.
“A public campaign promoting healthier choices should go hand in hand with the tax,” he suggested.
Ethan Khoo, 23, said the authorities should keep a close eye on businesses taking the opportunity to raise prices with the increasing taxes.
