‘Sugar incentives not the answer’

In Petaling Jaya, concerns have been raised about the conflicting policies regarding the sugar industry in Malaysia. While financial incentives have been provided to help sugar producers stay afloat, health advocates worry that this approach does not address the health problems associated with excessive sugar consumption.

Universiti Kebangsaan Malaysia’s Prof Dr Sharifa Ezat Wan Puteh emphasized that any sugar incentives should be limited to prevent potential negative impacts on public health.

She suggested implementing a tiered tax system for products with higher sugar content as a more effective approach to promoting healthier consumption habits.

Dr. Sharifa also noted that the recent hike in the tax on sugary drinks may not be sufficient to significantly reduce sugar consumption among the population.

She proposed that the funds allocated for sugar incentives could be better utilized to promote healthier lifestyle choices among Malaysians.

On the other hand, public health expert Datuk Dr Zainal Ariffin Omar recommended redirecting the resources from sugar incentives towards initiatives aimed at reducing sugar consumption and increasing public awareness about health.

He urged the government to focus more on implementing higher taxes on sugary drinks rather than providing financial support to sugar producers.

Dr. Zainal emphasized the importance of addressing non-communicable diseases through effective policy measures.

Finance Minister II Datuk Seri Amir Hamzah Azizan disclosed that the government had offered incentives to a sugar producer to assist them during a challenging period. This temporary measure was aimed at ensuring a stable supply of sugar for consumers in Malaysia.

The issue of supporting the sugar industry was raised in Parliament after concerns were raised about the potential negative impact on the industry due to global sugar price fluctuations.

The government’s decision to provide incentives to sugar producers while simultaneously imposing taxes on sugary drinks has sparked criticism from lawmakers, including Ayer Hitam MP Datuk Seri Dr Wee Ka Siong.

Dr. Wee questioned the inconsistency in government policies concerning the sugar industry and expressed concerns about the financial implications of such measures.

Under the 2024 Budget, a tax on sugary drinks was introduced, but there have been debates about its effectiveness in curbing sugar consumption and improving public health.

MSM Malaysia Holdings Bhd’s CEO Syed Feizal Syed Mohammad stated that the sugary drink tax had minimal impact on the company and the local sugar industry, as it primarily applies to ready-to-drink beverages.

He highlighted the potential economic burden that the sugar tax may impose on consumers and questioned its effectiveness in achieving the desired health outcomes.

Based on financial reports, MSM Malaysia Holdings Bhd received incentives totaling RM48 million, raising concerns about the government’s allocation of funds in relation to the sugar industry.