Malaysia Consumers Movement president Darshan Singh Dhillon said any such increase must not be excessive.

“It is within their right to sell their drinks at a higher price, but they must justify the increase is due to manufacturing cost. We are still governed by anti-profiteering laws that forbid businesses from getting excessive profits,” he said.

Darshan said no action was taken against a fast food chain which was alleged by social media users to have increased some of its set meal prices. He said “they had increased the prices to cope with the rising cost of their raw materials.”

Yesterday, Sin Chew Daily reported Deputy Health Minister Dr Lee Boon Chye as saying that manufacturers could decide if they want to pass the cost of the sugar tax to consumers.

The new tax was announced as part of the 2019 Budget. A levy of 40 sen per litre will be imposed on sugary drinks from July 1.

Darshan said consumers should play their role in making changes to their diet.

“We consume too much sugar, oil and saturated fats in our daily meals. We don’t seem to bother about the health consequences,” he added.

Malaysian Muslim Restaurant Owners Association president Ayoob Khan Muhammad Yakub hoped the government will put the tax on hold, for measures to educate the public about their diet.

“The economic situation is not good too and the government should wait a while before implementing it.”

He added that restaurant owners like himself would follow suit if suppliers or manufacturers increase the prices to cope with the tax.