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THE government’s implementation of the excise duty on sugar-sweetened beverages (SSBs) is proving to be one of the most effective policy interventions of the decade.

According to the latest data from the Finance Ministry, the government has collected RM73.81 million in excise duty on sugary drinks from January to November this year.

This brings the total revenue collected since the tax’s inception in 2019 to a staggering RM521.35 million.

To put that into perspective, the RM73.81 million collected in 2025 alone is roughly 25 per cent of Perlis’ entire 2024 state budget of RM293.92 million, while the RM521.35 million raised since 2019 is already close to funding two full years of spending for a small state like Perlis.

But the true success of this initiative is found in the hospital wards and pharmacies where these funds are saving lives.

The SSB tax is distinctly different. The ministry has confirmed that RM25 million from this year’s collection has been directly allocated to the Health Ministry to fund critical treatments.

Specifically, these funds are financing the procurement of SGLT2 inhibitors, which is a vital medication for diabetes management and supporting peritoneal dialysis facilities for patients with end-stage kidney disease.

In a country where diabetes prevalence is among the highest in the region, channelling tax revenue from the cause of the problem (sugar) directly to the cure (treatment) creates a powerful, self-funding ecosystem for public health.

The tax was first introduced on July 1 2019, at 40 sen per litre. Rather than shocking the market, the rate was gradually increased to 50 sen per litre on Jan 1, 2024, and most recently to 90 sen per litre starting Jan 1, 2025.

The higher tax rate pushes up the price of sugary drinks, forcing a moment of hesitation every time a bottle lands in the shopping trolley.

It nudges families to cut back on empty calories and pressures manufacturers to quietly reformulate their products with less sugar to avoid the tax, hence resulting in a slow but steady drop in the nation’s sugar and calorie intake.

Crucially, the money collected is ring-fenced for a very specific purpose - paying for diabetes medicines such as SGLT2 inhibitors and strengthening peritoneal dialysis services for patients with end-stage kidney disease.

Instead of asking every taxpayer to subsidise the medical costs of sugar-related diseases, the sugar tax shifts more of the burden onto those who profit from, sell, and consume high-sugar drinks. It sends a clear message: if you profit from selling products that harm public health, you must contribute to the cost of healing the nation.

Syed Muhamad Danial

The views expressed here are the views of the writer and do not necessarily reflect those of the Daily Express. If you have something to share, write to us at: Forum@dailyexpress.com.my