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Revenue generated by the tax on sugary drinks will be used to fund a free and healthy breakfast programme for all primary school children next year, said Prime Minister Dr Mahathir Mohamad.
"Beginning next year, the government will use the revenue collected from this tax to provide a free and healthy breakfast programme for all primary school children.
"We want our kids to be strong and healthy to perform in school," he said in his speech at the Invest Malaysia 2019 conference in Shangri-La Hotel, Kuala Lumpur today.
He said the sugar tax has been delayed as they want to ensure the mechanism is effective to primarily meet health objectives.
It was reported on March 7 that the government decided to postpone implementing a tax on sugary drinks, which was announced last year, from April 1 to July 1 this year.
The sugar tax will be the only new tax for the year, Mahathir added.
The prime minister also said it was now close to 10 months since Pakatan Harapan was given the mandate to form the government.
"We are fully aware of the feelings of the people on the ground," he said.
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However, he added, they also now knew the true extent of the damage done to the country by the previous administration.
"It is not an exaggeration to say we are unearthing new damage almost on a daily basis," he said.
The Harapan government has taken many steps to "stop the rot" and to bring the country back onto a stable footing, he said.
Many changes and reforms have been introduced and he hoped this would serve as an impetus to the economy and the capital markets in the long run.
"I am upbeat and excited about the initiatives we have and plan to take. Amid some of the short-term remedies, our efforts are for the long haul," said the prime minister. - Mkini
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