While some youths see the move as a step toward responsible consumption, others argue it will merely make alcohol more expensive without addressing the root causes of unhealthy drinking habits.
Timothy Majawat, a 24-year-old marketing executive, described the tax hike as a positive move given the rise in alcohol-related issues.
“I think it’s a good decision as alcohol-related crimes are becoming more prominent. It might not have an immediate effect, but it could influence future spending habits.”
He added that the current economic climate might also encourage people to cut back on non-essential spending.
“People will prioritise groceries, rent and utilities over alcohol. A 10% increase is significant enough to make people think twice about having another drink.”
However, a salesman who wished to be known only as Adam disagreed, saying the measure would not promote a healthier lifestyle as it would only make alcohol more expensive without solving anything.
“If the government wants to encourage healthy habits, it should invest in awareness campaigns on the negative effects of alcohol on health. Overdrinking has already been addressed extensively, but general awareness about alcohol’s impact can still be improved,” said the 25-year-old.
At the same time, the Confederation of Malaysian Brewers Berhad (CMBB) cautioned that the increase in alcohol excise duty could fuel the illicit beer market and reduce government revenue.
“CMBB expresses regret over the government’s decision to raise excise duty on alcohol by 10%, resulting in a new rate of RM192.50 per 100% volume per litre, especially given the current economic challenges and the pressures already faced by the food and beverage industry.
“Malaysia already has one of the highest beer excise rates globally, and any further increase will widen the price gap between legitimate and illicit beer,” it said, noting that around 25% of beer consumed locally is already illicit, costing the government an estimated RM1.2bil in lost tax revenue each year.
CMBB said the brewing industry remains a key contributor to the economy, generating RM7.1bil annually and RM3.3bil in tax revenue, while supporting over 52,000 jobs in manufacturing, logistics, retail and hospitality.
The group said it would continue to work with the Customs Department and other agencies to combat illicit alcohol through enforcement, education and collaboration.
Under Budget 2026, Prime Minister Datuk Seri Anwar Ibrahim announced that excise duties on cigarettes and alcoholic beverages will be raised from Nov 1 as part of efforts to promote a healthier lifestyle.
