Deputy domestic trade and cost of living minister Fuziah Salleh said this is because the price of coarse sugar used by traders in their food and snacks remains unchanged, Utusan Malaysia reported.

Coarse sugar is a subsidised item with the price capped at RM2.85 per kg, among the lowest in the world.

“This is the same sugar that is used to make food and drinks in restaurants and food stalls. It has nothing to do with the sugar tax mentioned in the 2025 budget,” Fuziah was quoted as saying.

“The sugar tax referred to in the 2025 budget only applies to drinks that have high sugar content.”

The tax hike will apply to all ready-to-drink packaged beverages that contain more than five grams of sugar per 100ml. An excise duty of RM0.40 per litre was introduced in 2019, and the rate was increased to RM0.50 from 2023.

The government wants to increase it by another RM0.40 per litre to make it RM0.90 from next year.

Prime Minister Anwar Ibrahim, who tabled the 2025 budget last Friday, said the increased excise duty is part of efforts to address Malaysia’s status as one of the most obese populations in Southeast Asia, and with sugar being a major contributor to non-communicable diseases (NCD) as well.

A health ministry survey last year found that more than half of the country’s adult population are either overweight or obese.