Health minister Dzulkefly Ahmad said this was revealed when an assessment of the sugar-sweetened beverage tax was conducted in 2022, three years after the tax was implemented in 2019.

“Producers of sugary drinks have reformulated their products to lower sugar levels in order to avoid paying the tax,” he said in the Dewan Negara today.

He was responding to a question by Senator Susan Chemerai Anding on the effectiveness of the sugar tax and its positive impact on public health.

The study also showed that the 40 sen per litre sugar tax had minimal impact on market prices, resulting in only a 2.24% increase compared to the anticipated 8.83% increase.

“What’s more significant is that the tax has successfully reduced sugary drinks consumption, particularly among adolescents, with a decline from 36.9% to 16.4%

“Youths and the lower-income B40 group, who are the largest consumers of sugary drinks, have benefitted the most from this initiative,” he added.

He said according to the findings from a 2022 survey on health and morbidity, carbonated drinks consumption among adolescents dropped from 36.9% in 2019 to 32.4% in 2022.

The ministry anticipates an even greater reduction in sugar consumption with the government’s recent announcement to raise the sugar tax to 90 sen per litre, said Dzulkefly.