KUALA LUMPUR, Oct 21 — The 40-sen-per-litre excise duty hike on sugary beverages does not involve regular granulated sugar commonly used by the public and food vendors, said Domestic Trade and Cost of Living Deputy Minister Fuziah Salleh.
Speaking to Utusan Malaysia, Fuziah said vendors should not use the tax increase on sugary drinks as an excuse to raise food and beverage prices in restaurants or food stalls.
“Regular sugar, which is often used to make food like traditional cakes and drinks in restaurants, remains unchanged and unaffected by the sugar tax mentioned in Budget 2025,” she said.
The excise duty increase, announced in the recent budget, targets drinks with high sugar content, such as canned beverages, Fuziah added.
Prime Minister Datuk Seri Anwar Ibrahim previously said the excise duty would rise to 40 sen per litre from January 1, 2024, as part of efforts to combat obesity, with Malaysia among the most obese countries in South-east Asia.
The tax applies to beverages containing added sugar, including carbonated drinks, milk-flavoured drinks with lactose, and fruit or vegetable juices, regardless of whether they contain additional sugar.
Fuziah stressed that food vendors must not use the excise duty as a reason to raise food prices, saying, “The cost of making traditional cakes should remain the same.”
She also highlighted the “Jom Kosong” campaign, initiated with industry players, to encourage consumers to opt for sugar-free beverages.
“With this initiative, participating restaurants will offer a 20-sen discount on sugar-free drinks, such as kopi O kosong,” she said.
Meanwhile, the President of the Malaysian Muslim Restaurant Owners Association (Presma), Datuk Jawahar Ali Taib Khan, said prices for sugary drinks, including teh tarik, would increase next year.
“The government’s new policy will transfer the tax cost to customers,” he said, adding that teh tarik, currently priced at RM2.40, would rise to RM3 per glass.
Jawahar Ali expressed support for the policy, stating, “This policy is expected to reduce sugar consumption and encourage people to choose healthier drinks.”
Public health expert Datuk Dr Zainal Arifin Omar also urged food and beverage operators to support the government’s efforts to combat obesity by reducing sugar content in their drinks.
“While people know that excessive sugar intake is harmful, many still overlook the risks,” he said, suggesting that offering the option to have drinks without sugar could help.
He advised against using viral sugary drinks as marketing strategies, saying, “Instead, introducing nutritious and wholesome food and beverages that are also delicious can attract customers.”
