By Danial Dzulkifly
KUALA LUMPUR, July 31 — Malaysia will expand its “pro-health” tax regime, which currently applies only to sugar, to include tobacco, vape or e-cigarettes, and alcohol products to curb non-communicable diseases and promote healthier living.
Speaking in Parliament during the tabling of the 13th Malaysia Plan (13MP) today, Prime Minister Datuk Seri Anwar Ibrahim said the government must take firm action against rising health risks by using fiscal tools to influence public behaviour.
“We need to be firm in addressing health risks. Pro-health taxes will be expanded beyond sugar to include products such as tobacco, vape, and alcohol.
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Prime Minister Datuk Seri Anwar Ibrahim speaks during the tabling of the 13th Malaysia Plan in the Dewan Rakyat at the Parliament building in Kuala Lumpur, on July 31, 2025. — Picture by BERNAMA[/caption]
“This is not just to raise revenue but to encourage a healthier lifestyle and contain the worrying rise in non-communicable diseases,” he said.
The move builds on the sugar tax introduced in Budget 2025, which raised excise duties on sugar-sweetened beverages by 40 sen per litre, bringing the total to 90 sen per litre, starting January 1 this year.
Under the 13MP framework, Anwar said the government is also working to ensure high-quality healthcare remains affordable and accessible to all Malaysians.
This includes promoting the broader use of locally produced generic medicines in both public and private healthcare facilities to reduce costs and improve supply.
Overall, the healthcare sector will receive RM40 billion under the plan, with a key focus on reducing out-of-pocket spending by the public and ensuring better access to treatment.
Several major hospital and specialist centre projects were also announced as part of infrastructure upgrades.
These include the Tuanku Ja’afar 2 Hospital in Seremban, Negeri Sembilan; the Sultanah Aminah 2 Hospital in Johor Bahru, Johor; the Northern Region Cancer Centre in Sungai Petani, Kedah; the Sabah Heart Centre at the Queen Elizabeth II Hospital in Kota Kinabalu; and the Sarawak Cancer Centre.
To ensure these new facilities are adequately staffed, the government will develop a professional development framework for the healthcare sector, alongside plans to digitise medical records for better patient management and care delivery.
