Supplements, Rebates, and Savings: Reforming Policies for Wellness in Budget 2025

WORDS DATUK DR RAJEN MANIKA

FEATURED EXPERT
DATUK DR RAJEN MANIKA
President and Council
Malaysian Dietary Supplement Association (MADSA)

As we await the upcoming Budget 2025, set to be tabled in Parliament this October, we are presented with a critical opportunity to reassess the current tax policies, particularly on dietary and health supplement products.

THE QUESTION THAT MUST BE ADDRESSED IS: SHOULD HEALTH AND WELLNESS BE TAXED?

The simple answer is no, and yet, dietary supplements in Malaysia are currently subjected to a 5% sales and service tax (SST), with certain finished products also facing a 5% import duty.

This taxation is an unnecessary financial burden on Malaysians striving to maintain or improve their health.

Revising these tax policies is not just an economic adjustment; it is a vital step towards enabling all Malaysians to adopt healthier lifestyles, a change that has been long overdue, especially since the last review request was in 2021.

BALANCING PROTECTION AND QUALITY IMPROVEMENT

To fully understand the urgency of this issue, it’s important to consider how these taxes are not only affecting consumers, but also hindering the growth and quality of the local supplement industry.

The imposition of import duties on selected ingredients and finished dietary supplements is counterproductive. Instead of protecting local industries, these duties end up increasing production costs and consequently, retail prices.

In reality, the local supplement industry is heavily dependent on imported ingredients, and as of yet, there is no viable alternative.

For instance, let’s take a look at fish oil. Malaysia’s tropical waters simply do not yield the cold-water fish required to produce high-quality fish oil. The import duty on this essential ingredient does nothing to protect local industries, because there is no local equivalent that can meet the demand or quality.

By removing these import duties, production costs would decrease, and these savings could be passed on to consumers, making health supplements more affordable and accessible to the general public.

This is not just a matter of economic efficiency; it’s about prioritizing the health of our nation.

SST EXEMPTION FOR DIETARY SUPPLEMENTS?

The current application of SST on dietary supplements is another area in dire need of reform.

Currently, several dietary supplements containing ingredients such as vitamins, fish oil, spirulina, essence of chicken, Haruan fish, and more are imposed a 5% SST. On the other hand, all pharmaceutical products, including ascorbic acid (vitamin C), elemental iron, and medications containing multivitamins and minerals are tax exempted.

Exempting dietary supplements from SST aligns with the principle of allowing individuals the freedom to make informed choices about their healthcare. By removing SST from these products, the government can make them more affordable, encouraging more Malaysians to invest in their health.

Furthermore, as more Malaysians turn to dietary supplements, we can expect a decrease in non-communicable diseases (NCDs), which will ultimately lead to reduced healthcare costs for the government. It will be a clear win-win situation, where the public gains access to better health resources and the government reduces its long-term financial burden.

INTRODUCE LIFESTYLE TAX RELIEF AND TARGETED SUBSIDY STRATEGIES

In addition to removing taxes and import duties, the government should consider including dietary supplements in the existing lifestyle tax relief.

Tax reliefs have proven effective in encouraging healthier behaviors, and extending this benefit to include supplements would provide financial relief to those actively investing in their health.

However, broad-based subsidies can create a dependency that is counterproductive in the long term. Instead, the government should implement targeted subsidies for vulnerable groups, ensuring that financial assistance reaches those who need it most without fostering a culture of reliance. An end-of-subsidy monitoring plan could also be established to evaluate the effectiveness of these measures, ensuring they are both sustainable and successful in their intended goals.

Achieving long-term success in dietary supplementation requires a multi-faceted approach. It is imperative that local government agencies collaborate with supplement producers and relevant NGOs to educate the public about the benefits of dietary supplements. Through comprehensive education campaigns and awareness programs, we can empower consumers to make informed decisions about their health, dispelling myths and misinformation along the way.

For instance, the current ‘Tolak Ubat Tidak Sah’ campaign by the Ministry of Health could be similarly applied to dietary supplements as a friendly, accessible means to educate and spread awareness.

By adopting these measures, the government can support consumer health choices, enhance the quality of local products, and create a more competitive and vibrant supplement market.

Now is the time for action. By revising tax policies, offering targeted subsidies, and educating the public, we can ensure that dietary supplementation becomes an integral part of Malaysia’s approach to health and wellness. The health of our nation depends on it.

Weighing the Facts of Malaysia’s Battle Against Obesogenic Environments

WORDS UMI ATIKAH MOHD HASHIM & ASSOCIATE PROFESSOR DR ZAHARA ABDUL MANAF

FEATURED EXPERTS

UMI ATIKAH BT MOHD HASHIM
BSc Nutrition and Community Health UPM
Student of Master Clinical Nutrition
Universiti Kebangsaan Malaysia
ASSOCIATE PROFESSOR DR ZAHARA ABDUL MANAF
Senior Lecturer
Centre for Healthy Ageing and Wellness (H-CARE)
Faculty of Health Sciences
Universiti Kebangsaan Malaysia

The Malaysian lifestyle has been undergoing changes over time. With improved socio-economic conditions, Malaysians tend to consume more food today than they did previously. Excessive intake of high-calorie foods combined with little daily physical activity has led to increased numbers of overweight and obese people in the population.

Malaysia has the second highest in the number of overweight and obese people in the Southeast Asian region. Furthermore, the rate of increase in overweight and obese individuals in Malaysia was found to be the highest in the region. Since the percentage of overweight and obese people increased consistently from 2010 to 2014, there is a high possibility that this trend will continue in the coming years.

The root of this issue lies not just in personal choices but in what experts term an “obesogenic environment.”

WHAT IS AN OBESOGENIC ENVIRONMENT?

An obesogenic environment is characterized by conditions that promote obesity among populations.

In Malaysia, this includes a combination of the following factors.

  • Readily available high-calorie foods, exacerbated by the proliferation of fast-food outlets and online food delivery service.
  • Notable scarcity of outlets offering fresh and nutritious foods in urban areas that makes healthy eating more challenging and often more expensive, steering individuals towards less healthy but more accessible and affordable options.
  • Sedentary lifestyle. Increased screen time, whether for work, education, or leisure, reduces the time spent on physical activities. The convenience of smartphones and other devices has made it easier for individuals to order food online, play video games, or consume digital content for hours, thereby limiting physical movement.
  • Urban planning that discourages physical activity. Urban infrastructure often lacks safe, accessible spaces for physical exercise, further contributing to sedentary behavior. Parks and recreational facilities are often too few or inadequately maintained, especially in lower-income areas.
  • Social and economic pressures. People in lower socioeconomic brackets may prioritize cheaper food options, which are often processed and high in calories, due to budget constraints. Furthermore, individuals working multiple jobs or long hours may have less time and energy to prepare healthy meals or engage in physical exercise.
  • Cultural factors. Food plays a significant role in Malaysian culture, with social events often centered around eating. The emphasis on food abundance can sometimes overshadow the importance of food quality.
IMPLICATIONS FOR THE PEOPLE AND THE NATION

The implications of this obesogenic landscape are profound, impacting not only the physical health of individuals but also the nation’s healthcare system.

  • Public health crisis. Rising obesity rates increase the prevalence of non-communicable diseases (NCDs) such as diabetes, heart disease, and certain cancers, straining the healthcare system.
  • Economic burden. The rise in obesity-related diseases, such as diabetes, hypertension, and heart disease, places an increased burden on healthcare resources.
  • Social and emotional toll. Obesity can lead to psychological issues, including low self-esteem and depression, affecting individuals’ quality of life and productivity. Furthermore, obese people often encounter stigma and discrimination.
TACKLING THE CHALLENGE OF OBESOGENIC ENVIRONMENT WITH A MULTIFACETED APPROACH

Addressing the challenge of obesogenic environments requires a broad, collaborative approach that involves public policy changes, community engagement, and individual action.

  • Enhance urban planning and infrastructure. Prioritize the development of pedestrian-friendly infrastructure, safe cycling paths, and more green spaces within urban areas.
  • Improve economic accessibility to healthy foods. Implement policies aimed at reducing the cost of fresh produce and healthy goods while potentially taxing high-calorie, nutrient-poor foods.
  • Promote cultural shift towards healthy living. Launch public health campaigns that educate about healthy eating and celebrate it as part of the national culture.
  • Leverage technology for health promotion. Harness technology to encourage physical activity and healthy eating through apps and virtual services.
  • Strengthen public health policies. Implement comprehensive policies that tackle the availability and marketing of unhealthy food options, especially those aimed at children.
  • Launch education and public awareness campaigns. Encourage employers to create wellness programmes that promote physical activity and healthy eating. Invest in educational programmes that start from early childhood and extend into adulthood to build lifelong habits of healthy eating and regular physical activity.
  • Improve access to healthcare and nutritional guidance. Ensure individuals have access to regular health check-ups and consultations with nutritionists and dietitians to help prevent and manage obesity.

The battle against obesogenic environments in Malaysia is complex, involving an intricate web of societal, economic, and individual factors. However, by understanding these challenges and adopting a collective approach to address them, Malaysia can pave the way toward a healthier future. It requires commitment from all sectors of society—from government and industry to schools and families—to create an environment where healthy choices are easy, affordable, and valued.

Diabetes Experts Reflect on Present & Future Diabetes Awareness Efforts

WORDS LIM TECK CHOON

DIABETES EDUCATION TO PROTECT TOMORROW

The theme of World Diabetes Day in 2022 is Education to Protect Tomorrow, which calls for the need for better access to quality diabetes education for healthcare professionals and people living with diabetes.

During the recent World Diabetes Day (WDD) 2022 celebration in Putrajaya, which was jointly organized by the Endocrine Institute of Putrajaya Hospital, the Malaysian Endocrine & Metabolic Society (MEMS), and Novo Nordisk Pharma Malaysia, the experts present reflected on the need to raise public awareness among Malaysians on diabetes.

After all, the latest National Health and Morbidity Survey reported 1 in 5 adult Malaysians has type 2 diabetes!

EFFORTS NEED TO BE DOUBLED TO STOP RISING PREVALENCE 

Dato’ Dr Asmayani Khalib, the Deputy Director-General (Medical), Ministry of Health Malaysia, said: “The rising number of people affected by diabetes is putting added strain on healthcare systems. Healthcare professionals require quality diabetes education on how to detect and diagnose the condition early and provide the best possible care; while people living with diabetes need access to ongoing education to understand their condition and carry out the daily self-care essential to staying healthy and avoiding complications.”

Datuk Dr. Zanariah bt Hussein, the Head of the Endocrinology Subspecialty Service of the Malaysian Ministry of Health, felt that, as more Malaysians are diagnosed with diabetes, current efforts need to be doubled to stop this rising number from escalating further.

“Access to quality diabetes education is a goal we must all strive in, to educate and empower not only patients and the community but also family members who are providing support and care,” she said.

DIABETES EDUCATION KEY TO SUSTAINABLE LONG-TERM DIABETES CARE

“The focus on access to diabetes education is a critical aspect that will enable sustainable long-term care, with both healthcare providers and people living with diabetes receiving quality diabetes education,”  said Richard Abela, the Vice President and General Manager of Novo Nordisk Pharma Malaysia. “This is an essential component of diabetes care as we develop a patient-centric approach in care, that is sustainable for lifelong chronic disease management.”

MMA Collaboration Offers Free Health Screening to People Over 40

WORDS LIM TECK CHOON

FROM DECEMBER 2022 TO FEBRUARY 2023, MALAYSIANS AGED 40 & ABOVE CAN GET FREE HEALTH SCREENING

This is thanks to SCREEN.DETECT.ACT, a campaign jointly organized by Malaysian Medical Association (MMA) and Viatris Malaysia.

This campaign aims to have more Malaysians aged 40 and above screened for risk factors for non-communicable diseases such as diabetes, hypertension, and high cholesterol.

LACK OF HEALTH SCREENING LEAVES MANY UNAWARE THAT THEY HAVE NON-COMMUNICABLE DISEASES

The campaign is an effort of the MMA to support of the National Health Screening Initiative (NHSI) 2022, launched in July this year by the Ministry of Health, to address the low rate of health screening among the public.

Dr Muruga Raj Rajathurai, the President of the MMA, tells us: “It is concerning that a high number of Malaysians with high blood pressure, blood sugar, and cholesterol were unaware of their health status, as they did not see a doctor for a medical check-up to get a diagnosis.”

He adds that the SCREEN.DETECT.ACT campaign is timely because the rate of health screenings has dropped over the last 2 years due to the lockdowns.

PILOT PROGRAMME ROLL-OUT

The SCREEN. DETECT. ACT campaign will roll out in Klang Valley and Negeri Sembilan, targeting 1,000 people above 40 years of age and those at higher health risks.

“We urge those above 40 years of age, those at higher risk, and especially, those who have yet to undergo any medical check-ups or health screening, to seize this opportunity to get yourself screened. Early detection and timely treatment can potentially lower your risks of complications and result in better outcomes. Health screening can save lives,” says Dr Muruga.

Free health screening under the SCREEN.DETECT.ACT is available at participating general practitioner clinics. For more information, contact Malaysian Medical Association (MMA) at 03-4041 1375 (office) or 018-277 8794 (WhatsApp only) from Monday to Friday (9 am to 6 pm).