Tax sweetened condensed milk to fight diabetes, says think tank

 

THE Galen Centre for Health and Social Policy has called on the government to introduce an excise tax on sweetened condensed milk and sweetened creamer as part of Malaysia’s efforts to combat diabetes, obesity and other non-communicable diseases (NCDs).

Its chief executive officer, Azrul Mohd Khalib, said sweetened condensed milk remains one of the most common yet overlooked sources of added sugar in the Malaysian diet, despite the implementation of the sugar-sweetened beverage (SSB) tax.

“Malaysia has implemented an SSB tax, but one of the largest everyday contributors to added sugar remains largely unaddressed. Sweetened condensed milk is widely used in beverages such as teh tarik, kopi and Milo, as well as in desserts, baked goods and home cooking,” he said in a statement.

Azrul said the widespread use of condensed milk means consumers are often unaware of how much sugar they are consuming, particularly when dining at restaurants, kopitiams and mamak outlets.

He noted that findings from the National Health and Morbidity Survey (NHMS) 2023 showed that 15.6% of Malaysian adults have diabetes, while 29.2% have hypertension, 33.3% have high cholesterol, and 54.4% are overweight or obese.

“The burden of NCDs continues to grow, and the age of onset is becoming younger. These conditions are closely linked and contribute significantly to kidney disease, cardiovascular disease, stroke, blindness and other serious  health complications,” Azrul continued.

According to the Galen Centre, NCDs cost Malaysia an estimated RM64.2 bil in 2021, equivalent to 4.2% of gross domestic product (GDP). This included RM12.4 bil in healthcare expenditure and RM51.8 bil in productivity losses.

Azrul said preventive measures were necessary to reduce future healthcare costs and improve public health outcomes.

The think tank proposed that the government introduce a tiered excise tax on sweetened condensed milk, sweetened creamer and similar milk-based products based on sugar content per 100g. Products with higher sugar content would attract higher tax rates, while reformulated lower-sugar products would be taxed at lower rates.

It also proposed extending the tax to commercial and bulk supplies used by restaurants, cafés, bakeries, kopitiams and food manufacturers.

The Galen Centre said revenue generated from the tax should be ring-fenced for diabetes screening, early intervention programmes, nutrition education, public awareness campaigns and support for small food operators transitioning to healthier alternatives.

“The Galen Centre urges the Finance Ministry and Health Ministry to include a condensed milk and sweetened creamer excise tax in the 2027 Federal Budget,” Azrul said.

“This should be alongside stronger nutrition labelling, public education and targeted support for lower-income households.” ‒  Focus Malaysia