The Consumers’ Association of Penang (CAP) supports the proposal of a “sugar tax” to fight the diabetes epidemic in Malaysia but the Government should allocate subsidies for the poor.
CAP president Mohideen Abdul Kader told Business Today that the majority of the diabetic cases in Malaysia are of Type 2 diabetes.
“This means that it could be prevented through proper dietary intake and exercise,” he said.
According to the National Health and Morbidity Survey 2019, 3.6 million adults aged 18 and above years) had diabetes. A total of 49%, or 3.7 million cases went undiagnosed.
However, Mohideen said it would like the government to speed up its targeted subsidies for the poor because they are worst affected by price increases.
“Such families are prone to malnutrition and the development of non-communicable diseases (NCDs) and poor mental health such as depression.
Maybank Investment Bank Research (Maybank IB) Asean Macro X note released last week on Budget 2024 touches on GST and highlights that the Budget 2022’s consumption-related tax measures put on hold so far such as expansion of “sugar tax” base and 6% service tax on delivery service providers could surfaced in Budget 2024.
He said the implementation of taxes such as consumption-related tax measures is necessary.
“What is important is how they (the taxes) are utilised by the government to benefit the people (such as subsidising on essential goods that are needed by those in the B40 and M40 groups.
“Given the existing situation, the government has to be prudent with its fiscal spending,” he said, adding Malaysia is already burdened with astronomical debts from borrowings over the years that could hold back its infrastructure developments.
Mohaideen added the government should also investigate claims of profiteering, smuggling of essential items such as cooking oil and the existence of cartels.
“Claims of illegal activities have been plaguing the country for decades. Those involved must be severely punished as a lesson to others.”
He said CAP predicted that the budget may likely address the problem of local rice shortage and rise of food prices because food issues are crucial to the country.
“Malaysia desperately needs a comprehensive agricultural policy and revamp agencies overseeing food production in the country and adopt the farm-to-table approach, eliminating the middlemen wherever possible.
“Local farmers have to depend on imported agricultural needs and animal feed which are expensive, thus the government should seriously consider encouraging locals to venture into animal feed production, or other supplies needed for agriculture,” he said.
The association said with the regional geopolitical volatility, the effects of global warming, and Malaysia’s lack of food sustainability, it has to depend on food imports that are going to hurt the monthly budgets of most consumers.
Asked on the speculation of GST implementation, Mohideen said: “We think that the eventual implementation of GST is unavoidable but not during the current economic doldrums.”
On how Budget 2024 can ease the burden of consumers, he said: “(It is possible), if the government is able to introduce affordable and efficient public transportation besides improving food security.
“Doubtless, Malaysia has much to catch up with food security since the year it pursued residential and commercial development.”
He added Malaysia is already burdened with astronomical debts from borrowings over the years that will negatively impact its future generations and can hold back some of its infrastructure developments such as public transport.
