Minimal impact forecast from proposed sugar tax

CIMB Securities Research remained neutral on the proposed sugar tax, pending further details.

PETALING JAYA: Any new sugar tax that may be introduced in Budget 2025 would have a minimal impact on food and beverage (F&B) makers who have the option to pass on the cost to consumers or adjust the product portfolio to neutralise the tax imposed.

News reports quoting Malaysia’s Health Minister Datuk Seri Dr Dzulkefly Ahmad stated a new tax – the sugar-sweetened beverage (SSB) tax – will be introduced in the upcoming budget on Oct 18 under a “War on Sugar” drive to lower consumption of sugar among the public.