Malaysia will expand its “pro-health” tax to include tobacco products, vapes, and alcohol, Prime Minister Datuk Seri Anwar Ibrahim announced while tabling the 13th Malaysia Plan (RMK13) in Parliament. This move aims to encourage healthier lifestyles and curb the rising prevalence of non-communicable diseases (NCDs) like heart attacks, strokes, and cancer.
The tax expansion is a key component of broader healthcare reforms designed to ensure sustainable funding and wider access to quality, affordable healthcare. Anwar highlighted that the public health system is increasingly burdened by medical inflation, an aging population, and the rise in both communicable and non-communicable diseases. The goal of the expanded tax is not just to boost government revenue but, more critically, to drive a behavioral shift away from unhealthy consumption habits.
The 13th Malaysia Plan allocates RM40 billion from the government for the healthcare sector over the next five years, which Anwar said will help reduce Malaysians’ out-of-pocket healthcare expenses. Other reforms include encouraging local manufacturing of medicine, increasing the use of generic drugs, and strengthening the management of digital health records to enhance analytics with artificial intelligence (AI). Efforts will also be made to retain talent within the public healthcare sector. The plan also includes projects to build and upgrade government clinics and public hospitals across the country.
- Read more: Malaysia Considers Full Vape Ban, Minister Confirms
- News source: Tobacco, vape and alcohol taxes to be expanded to curb NCD surge
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