The Galen Centre think tank said the government would still be paying sugar manufacturers a subsidy of between RM500 million and RM600 million a year.

“A total collection of around RM400 million from the sugar tax increase still falls far short of the cost of subsidising sugar,” said Galen Centre CEO Azrul Khalib.

Azrul has repeatedly urged the government to remove sugar subsidies in order to curb diabetes among Malaysians.

The 2025 federal budget tabled today includes plans to increase excise duty on sugary drinks to RM0.90 per litre from Jan 1, as part of reducing the sugar intake of Malaysians.

Azrul said the money saved from the sugar subsidies could instead be used to invest in health education, preventive interventions and healthy breakfast programmes for school children.

Dr Amar-Singh HSS, a consultant paediatrician, also welcomed the sugar tax increase to curb non-communicable diseases like diabetes. However, there should be a greater government focus on health promotion, such as a reduction in car use and greater use of public transport to increase physical mobility.

The Association of Private Hospitals Malaysia also welcomed the government’s plan to increase the number of private hospitals involved in treating patients outsourced from the health ministry.

However, Amar said this plan would be feasible only if costs in private hospitals were kept under control. “Private doctor fees are controlled but not the hospital charges which make up the larger portion of the total charges,” it said.

Malaysian Medical Association president Dr Kalwinder Singh Khaira called on the government to provide more details on its plans for targeted public healthcare subsidies.

“We believe only a small percentage of the T15 income group patients would seek health services at government facilities,” said Kalwinder. “The majority of the T15 are known to seek services in private facilities,” he added.