PETALING JAYA: The government will tighten public health measures under Budget 2026 by raising excise duties on tobacco and alcohol while strengthening pharmaceutical resilience and preventive healthcare.
Prime Minister Datuk Seri Anwar Ibrahim said a public-private partnership will be piloted to secure the supply of essential medicines, ensuring consistent access for patients.
On unhealthy product consumption, excise duties on cigarettes will increase by 2 sen per stick, cigars by RM40 per kilogram, and heated tobacco products by RM20 per kilogram of tobacco content beginning Nov 1, 2025. Alcohol will also face a 10% excise duty hike.
“The additional revenue will be channelled to the Health Ministry for lung health initiatives and for the treatment of diabetes and heart disease,” Anwar told Parliament.
He added that duty exemptions on nicotine replacement therapies will be extended until 2027 and expanded to cover nicotine mist and lozenges. Meanwhile, income tax relief for vaccinations will be broadened to include all vaccines approved by the Health Ministry.
“Prevention is better than cure. By discouraging unhealthy habits and making vaccines more accessible, we are investing in a healthier Malaysia,” Anwar said.
