Sugar tax and other punitive measures won’t help Malaysians become healthier

The Malaysian government is following in the footsteps of some of its Asean neighbours in introducing the tax, even when evidence of its effectiveness is far from definitive. Public health problems like obesity require a more nuanced policy

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From July 1, a tax of 40 Malaysian sen (10 US cents) per litre will be levied on all packaged drinks that contain sugar and other sweeteners in levels exceeding 5g per 100 millilitres. Photo: Reuters

Thusitha de Silva has been working in the financial media for over 20 years.

Published: 12:00pm, 1 Jul 2019Updated: 12:28pm, 1 Jul 2019

The Malaysian government is justifiably concerned about obesity levels in the community but it is difficult to see how the implementation of a sugar tax in the country from July 1 will address this issue. In the absence of an effective public health education framework, the obese are likely to continue to seek out untaxed sweet drinks and desserts to satiate their needs.

A tax of 40 sen (10 US cents) per litre will be implemented on all packaged drinks that contain sugar and other sweeteners in levels exceeding 5g per 100 millilitres, as well as fruit and vegetable juices with sugar exceeding 12g per 100ml. The tax will not be imposed on food and beverage outlets and only be limited to manufacturers. However, it is inevitable that the higher costs that manufacturers face will be ultimately passed on to consumers.

The sugar tax in Malaysia is an example of a government introducing a tax measure without any solid evidence that it actually works to meet its objective. In fact, there is evidence to suggest that sugar taxes don’t work to combat obesity. Success stories of the sugar tax movement were at first reported in Mexico and Berkeley, California, but the findings in the wake of the implementation of soda taxes were far from definitive.