The United Nation’s Children’s Fund (Unicef) described the move as a positive step considering Malaysia’s standing as the fattest country in Asia and in light of the global increase in the number of people suffering from diabetes and other non-communicable diseases (NCD) that are blamed on diet.
“It’s a first step and we’re happy,” said Siti Altaf Deviyati, a Unicef social policy specialist.
“However, the tax of 40 sen per litre is rather low. Most international organisations push for at least a 20% tax. This would make it RM1.26 per litre.”
Finance Minister Lim Guan Eng announced the new tax during his Budget 2019 speech in Parliament yesterday. It will come into effect this April 1. Affected are drinks that contain sugar in excess of five grammes per 100 millilitres and juices containing more than 12 grammes per 100 millilitres.
Siti said discouraging sugar consumption was only one of many ways of promoting healthy lifestyles.
“One of the issues plaguing Malaysia is undernutrition and the lack of micronutrients in the food children eat. This can be addressed by having the right type of food in schools.”
She called for more programmes like the one currently run by the education ministry to feed poor children with breakfast. Current programmes could be strengthened, she added.
The Galen Centre for Health and Social Policy urged the government to channel its collection of the new tax directly into health programmes.
“Earmarking this revenue for this purpose would help strengthen the effectiveness and sustainability of current health literacy and NCD prevention programmes, particularly since there has been a reduction in the allocation for health education,” said Galen Centre CEO Azrul Mohd Khalib in a media statement.
The Consumers Association of Subang and Shah Alam (Cassa) said it had been pushing for such a tax for 25 years.
“There is no need to debate this anymore,” Cassa president Jacob George said. “Consumers will now scream and shout, but Pakatan Harapan should not compromise.
“We know there are demographics dependent on sweets and sugar. So now, there is the question of education and using the media as much as possible to market this new tax.
“Massive campaigning is needed on the ground at present.”
Consumers’ Association of Penang (CAP) president SM Mohamed Idris described the announcement of the new tax as “sweet news” and said he hoped consumers would now begin boycotting all sugary foods.
According to Malaysian Medical Association president Mohamed Namazie Ibrahim, most food items on the market are high in sugar content. He questioned why only beverages would be subject to the new tax.
However, Siti said she wouldn’t agree on a sugar tax covering both drinks and solid foods, adding that studies needed to be done to determine whether the latter should be taxed.
“I think it should be two different taxes,” she said. “But I wouldn’t recommend a sugar tax on food yet.”
It has been reported that one in three Malaysians consumes at least one can of soft drink a day. An average can contains 8.5 teaspoons of sugar.