The Galen Centre for Health and Social Policy said increasing the duty to 77 sen per stick would lift its share of the retail price to 61% and add RM771.8 million to the country’s coffers.
The cigarette tax has not been raised since September 2014, when it was increased from 28 sen to 40 sen per stick.
Malaysia’s tobacco tax currently accounts for 58.6% of retail prices, below the World Health Organization’s recommendation of 75%.
“How much will a two sen increase really bring in?” said Galen CEO Azrul Khalib.
“Malaysia spends about RM16 billion a year treating smoking-related illnesses such as cardiovascular disease and lung cancer.
“For every RM1 collected from tobacco excise duties, RM4 is spent treating related diseases,” he said.
Azrul also urged the government to establish a national health and social insurance scheme, which he said could raise around RM6 billion annually.
The funds, he said, could be pooled to strengthen universal healthcare and aged care, while tackling the country’s non-communicable disease crisis.
“Unfortunately, we didn’t hear that commitment in the budget. Once again, we’ve kicked the can down the road,” he said.
Separately, the Malaysian Medical Association expressed disappointment that the minimum RM10 consultation fee for general practitioners remains unchanged after 33 years.
Although the maximum chargeable fee will rise from RM35 to RM80, the MMA said maintaining the RM10 floor price continues to undercut private clinics and is unsustainable.
“It is deeply disappointing and fails to reflect the true value of general practitioners in delivering frontline care,” the association said, adding that it has long proposed a RM50 minimum fee.
MMA noted that more than 60% of patients come through third-party administrators and companies that pay below RM35 per consultation, further straining clinics.
In the 2026 budget estimates announced yesterday, the health ministry will receive RM46.5 billion to upgrade hospitals, buy new equipment, and improve facilities
Some RM1.2 billion will go toward repairs and maintenance, RM100 million to upgrade district hospital wards, and RM755 million to replace old and purchase advanced medical tools.
To ease hospital overcrowding, RM140 million will be allocated for patient outsourcing and RM30 million to expand specialist services at health clinics.
New facilities include the Northern Region Cancer Centre in Kedah, new hospital blocks in Pontian, Banting, and Sungai Buloh, and an Advanced Surgical Block at Universiti Sains Malaysia’s specialist hospital in Kubang Kerian, Kelantan.