KUALA LUMPUR, October 18 — As part of its comprehensive health initiatives and fiscal strategy, the Malaysian government has announced plans to incrementally raise the excise duty on sugary drinks starting January 1, 2025. This decision is included in the recently unveiled RM421 billion federal budget, which marks a significant RM27.2 billion increase from the previous year, making it the first budget to surpass RM400 billion.
The phased increase will see the excise duty rise by 40 sen per litre, from the current rate of 50 sen. Prime Minister Anwar Ibrahim stated that the additional revenue generated from this increase will be allocated towards treating diabetes and providing peritoneal dialysis for end-stage kidney patients, particularly in Felda settlements. This initiative underscores the government’s commitment to tackling obesity and non-communicable diseases, which have been exacerbated by excessive sugar consumption.
Anwar highlighted that Malaysia is among the most obese countries in Southeast Asia, making the fight against sugar consumption a priority. The government’s strategy aims not only to generate funds for healthcare but also to encourage healthier lifestyle choices among Malaysians, addressing the rising health issues linked to sugar intake. Further details regarding the implementation of this excise duty increase are expected in the coming months.
