Redirect taxes for a healthier future

WHEN the government announced the expansion of the Sales and Service Tax (SST) starting July 1, many Malaysians focused on the rising cost of goods.

However, less attention has been given to how this policy – and the earlier increase in sugar-sweetened beverage (SSB) excise duties – can shape the health of our next generation. While the intention behind these taxes is clear – to discourage SSB consumption and encourage support for local produce – the real question is: Will they make Malaysian children healthier?

A system that helps, not hinder

Under the new SST regime, key staples like rice and vegetables are exempt but items such as imported fruits and dairy products (excluding milk) are now taxed at 5%.

While the sugar tax is a step towards reducing excessive sugar consumption, the price hikes on imported fruits and dairy products may reduce access to healthier food options and limit the diversity of people’s diets, particularly for low-income families.

Nutrition crisis among children

The latest National Health and Morbidity Survey 2024: Nutrition reveals a sobering reality:

One in two children aged five to nine do not consume enough diverse food groups.

A shocking 97% of adolescents do not consume the recommended two glasses of milk a day.

87% of adolescents do not consume the recommended two servings of fruits a day.

63% of adolescents drink at least one serving of sugary drinks a day.

Malaysia faces a complex nutrition crisis – a triple burden of undernutrition, micronutrient deficiency and obesity. One in five children under five is stunted while one in three adolescents is overweight or obese. These are not just health statistics; they reflect real challenges faced by Malaysian families and the long-term economic risks of a poorly nourished generation.

Investing in nutrition

Fiscal tools like SSB taxes and SST can support healthier diets but only
if paired with meaningful public investment.

The government should reinvest tax revenues into nutrition-focused programmes, especially in schools. This includes:

– Strengthening nutrition promotion efforts and expanding the reach of the healthy school meal programme through subsidies, so that all students can benefit regardless of income.

– Providing free local fruits and milk to students nationwide. Norway has successfully boosted student fruit consumption by 25% through free fruits at schools. Malaysia can follow suit, with the added benefit of supporting local agriculture.

– Ramping up monitoring and enforcement of existing guidelines on food and beverage sale within and around schools, including canteens, vending machines, cooperatives and street vendors, to create a healthier food environment for students.

Rethinking food subsidies

Financial assistance programmes, like Sumbangan Asas Rahmah, are well-intentioned but not nutrition-sensitive.

Current options often allow the purchase of processed foods that are high in sugar, salt and fat, while fruits and vegetables are out of reach. This is a missed opportunity to promote healthier eating in the very households that need it most.

Let us pivot subsidies to favour nutrient-rich options. A study published in The Lancet Planetary Health found that a 20% price-cut on fruits and vegetables resulted in a 17% increase in purchases.

This kind of behavioural change can be transformative for Malaysia’s fight against non-communicable diseases, conditions that are already costing us RM51.8 billion in lost productivity and RM12.4 billion in healthcare and disability payments in 2021.

Call for urgency and coordination

Just as we were united during the Covid-19 pandemic, we must now address the silent crisis of poor diets and child malnutrition with the same urgency.

According to the World Bank, every US$1 (RM4.20) invested in tackling malnutrition will yield a US$23 return. That is not just a health dividend; it is economic common sense.

If we are going to tax unhealthy consumption, we must also make healthy choices more accessible and affordable.

This means turning taxes into targeted investments that nourish our children today to build a healthier and more productive Malaysia tomorrow.

Let us ensure fiscal policies do not just balance the books but feed a healthier and more sustainable future for all.

Ang Zheng Feng is a health and nutrition officer with World Vision Malaysia.
Comments: letters@thesundaily.com

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