KLANG: The global fight against obesity and non-communicable diseases (NCDs) is a never-ending one, with many governments adopting various measures to tackle the issue.
One key initiative is to curb the consumption of unhealthy foods such as highly processed items, food with high content of salt and sugar as well as those prepared with excessive oil.
If left unchecked, the rise in NCDs due to poor eating habits could lead to disastrous long-term consequences for a nation’s public healthcare expenditure.
In light of this, the government’s proposal to introduce five new taxes in Budget 2025, including a tax on unhealthy foods, is timely, experts said.
This initiative is likely aimed at encouraging Malaysians to adopt healthier eating habits.
Economist Prof Dr Yeah Kim Leng emphasised that it is both critically necessary and timely for Budget 2025 to focus on promoting healthy and sustainable living.
“Timely, because the positive effects of fiscal measures have been evident and need further expansion.
“Critical, because NCDs are placing a tremendous burden on the economy, increasing treatment costs and reducing productivity,” he said.
Prof Yeah, also the president of the Malaysian Economic Association, added that heart, kidney, and liver conditions associated with NCDs can be prevented through greater investment in health promotion and preventive healthcare.
“Moreover, with an ageing population, the healthcare system will become unsustainable without a shift towards healthier living.
“A healthier workforce will make the economy stronger, more resilient, and sustainable,” said Prof Yeah, who is also affiliated with Sunway University’s Jeffrey Cheah Institute on South-East Asia.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid agreed that the primary goal of such taxes is to encourage Malaysians to develop healthier habits.
He said a tax on unhealthy foods would make it more expensive to maintain poor eating habits, such as consuming sugary drinks.
“However, other policies, like effective public campaigns to dissuade people from consuming unhealthy foods, should accompany the tax.
“The revenue generated from these taxes can be used to fund campaigns promoting a healthy lifestyle,” he added.
Clinical dietitian Rozanna M. Rosly pointed out that many countries use taxes as a public health tool to reduce the consumption of unhealthy foods.
She added that reducing the intake of unhealthy foods through taxation is one of the most cost-effective ways to prevent illnesses such as heart disease, stroke, cancer, and diabetes, while also increasing government revenue.
Overseas research has shown that taxes on foods high in fat, salt, or sugar (HFSS) have led to reduced sales and consumption of these items.
