No Sugar Tax for Fresh Drinks: Health Ministry Confirms Major Policy Shift

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The Health Ministry has no plans to expand the sugar-sweetened beverage (SSB) tax to drinks that are freshly prepared at restaurants, cafés or food outlets.

Health Minister Datuk Seri Dr Dzulkefly Ahmad said the ministry is instead continuing its Healthier Dining Programme (HDP), introduced in 2021 and focused on restaurant chains with standardised menus, including franchise eateries, fast-food operators and private establishments.

He explained that HDP builds on the existing Healthier Choice Logo (HCL) programme, which recognises healthier packaged food products.

“Through HDP, assessments also include freshly prepared or brewed food and beverages. Items that meet the required nutrition standards receive the HDP logo.

“The display of this logo helps customers make healthier choices when eating out,” he said in a written parliamentary reply published on the Parliament website.

Dzulkefly was responding to Lee Chean Chung (PH–Petaling Jaya), who asked whether the government planned to extend the sugar tax to freshly prepared beverages as part of the broader War on Sugar initiative.

As of September 2025, he said, 12 restaurant brands have joined the HDP, with 147 food and drink items certified with the HDP logo.

“This initiative is expected to grow further in line with the government’s commitment to encourage healthier eating habits among Malaysians,” he added.

Dzulkefly also noted that the sugar tax was first implemented on July 1, 2019 across three categories of ready-to-drink beverages—carbonated and non-carbonated drinks, milk-based beverages, and fruit or vegetable juices that exceed the permitted sugar threshold—at a rate of RM0.40 per litre.

The rate increased by 10 sen on Jan 1, 2024, and rose by another 40 sen to RM0.90 per litre starting Jan 1, 2025.

The tax was also expanded to premix drinks, such as 2-in-1 and 3-in-1 coffee, tea and chocolate beverages, from March 1, 2024, at a rate of RM0.47 per 100g.

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