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13MP: Govt expands health tax to curb NCDs

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Budget 2027

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PETALING JAYA: The government will expand its pro-health tax policy beyond sugar to include tobacco, vape, and alcohol products in a move aimed at curbing the rise of non-communicable diseases (NCDs) and promoting behavioural change among Malaysians.

Prime Minister Datuk Seri Anwar Ibrahim, in tabling the 13th Malaysia Plan (13MP) in Parliament today, said the growing burden of NCDs must be addressed decisively.

He stressed that the expansion of these taxes is not just a revenue-generating measure but a public health intervention.

“We must be firm in addressing health risks. Pro-health taxes will be expanded from sugar to products such as tobacco, vape, and alcohol – not merely to raise revenue, but to encourage behavioural change and curb the rising rate of NCDs, which is becoming increasingly alarming,” Anwar said.

He said healthcare remains one of the government’s top priorities, especially as the public health system faces mounting pressure from medical inflation, the spread of both communicable and non-communicable diseases, and an ageing population.

The healthcare sector will receive a total allocation of RM40 billion under the plan, with a strong focus on reducing out-of-pocket medical expenses for Malaysians and improving access to quality, affordable care.

The Madani Medical Scheme is among the flagship initiatives to expand healthcare coverage and ensure that no Malaysian is left behind in receiving proper treatment.

To address infrastructure needs, more hospitals and clinics will be constructed or upgraded, including major new facilities in Negeri Sembilan, Johor, Kedah, Sabah and Sarawak.

Anwar said the government is also committed to enhancing its healthcare workforce, with a national framework to be introduced to address talent development, licensing, recruitment and retention in the sector.

He added that digitalisation will be a key pillar of reform, with improvements to health record management aimed at strengthening interoperability across healthcare facilities and supporting the development of AI-powered health analytics to improve overall service delivery.

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