November 4, 2024
Malaysia’s Health Ministry is open to discussing the reduction of subsidies for sugar producers as part of its efforts to manage the country’s sugar consumption, according to Deputy Health Minister Lukanisman Awang Sauni.
The Deputy Health Minister noted that funds saved from cutting these subsidies could be redirected to improve public healthcare infrastructure. “It is not wise to provide excessive subsidies while facing high costs for diabetes treatment, especially amid the increasing prevalence of diabetes among Malaysians,” he stated in response to Syed Saddiq Abdul Rahman (Muda-Muar) during a question-and-answer session in the Dewan Rakyat on Monday (Nov 4).
In a follow-up question, Syed Saddiq suggested that the government raise the excise duty on sugary drinks and consider reducing sugar production subsidies, arguing that this is essential to prevent Malaysians from relying on sugar as a staple food item. While increasing excise duty could save the government RM400mil, he pointed out that RM1bil is still being spent on subsidies for the country’s two sugar producers, reported The Star.
“If the government is serious about addressing sugar consumption, it should not only raise excise taxes on sugar but also gradually cut sugar production subsidies to discourage dependence on sugar,” he said.
On October 18, Prime Minister Anwar Ibrahim announced plans to gradually increase the excise duty on sugary drinks by 40 sen per liter starting January 1 next year.