PUTRAJAYA, 17 November 2025: The Federation of Malaysian Consumers Associations (FOMCA) has officially urged the government to review and phase out sugar subsidies, arguing the current policy is no longer aligned with critical public health needs as the country confronts a severe diabetes epidemic.
FOMCA’s CEO, T Saravanan, proposed a gradual reduction of the subsidy over three to five years to allow consumers and industry time to adapt without facing sudden price surges. He recommended that the subsidy savings be channeled directly into public health programs, nutrition education initiatives, and incentives for food manufacturers to produce healthier products.
Medical Experts Warn of Diabetes Crisis
The call is strongly supported by medical practitioners. The Malaysian Medical Association (MMA) previously warned that Malaysia faces a diabetes crisis, ranking 13th globally and the highest in Southeast Asia, with 21% of Malaysian adults living with the disease.
MMA president Dr. R Thirunavukarasu called for a gradual 20% to 30% reduction in added sugar across manufactured food and beverages within the next three to five years. This target, he noted, is achievable and should be reinforced by a broader sugar tax and clearer front-of-pack nutrition labeling.
Industry Needs Support for Reformulation
While the policy shift prioritizes health, Fomca cautioned against the assumption that price reductions will automatically follow. Saravanan noted that reformulating products and using sugar substitutes often increases manufacturer costs, which may require additional investment and lead to higher product prices initially.
The Malaysian Indian Restaurant Owners Association (PRIMAS), represented by president J Govindasamy, supported clearer labeling but stressed the need for government assistance. PRIMAS urged the government to provide clear guidelines, training, and support for small food and beverage operators to ensure a smooth and practical implementation process that benefits both public health and the food industry.
