Redirecting vape tax revenue: A questionable move?

Image Credits: UnsplashImage Credits: Unsplash
  • The Malaysian government's decision to redirect vape tax revenue from health initiatives has been criticized by the Galen Centre for Health and Social Policy.
  • Non-communicable diseases like cancer, diabetes, and cardiovascular diseases require significant investment in prevention and treatment.
  • The Galen Centre calls for the government to reinvest vape tax revenue into health initiatives to address the growing burden of these diseases.

The Malaysian government's recent decision to redirect vape tax revenue from health initiatives to the federal consolidated fund has stirred considerable controversy. The Galen Centre for Health and Social Policy, a leading think tank, has been vocal in its criticism, asserting that this move contradicts previous commitments to bolster public health efforts.

The Importance of Vape Tax Revenue for Health Initiatives

The Galen Centre has long advocated for the imposition of taxes on vape products and e-cigarettes, similar to those on traditional tobacco products. The rationale behind this advocacy is to generate substantial revenue that can be channeled into health initiatives aimed at combating non-communicable diseases (NCDs) such as cancer, diabetes, and cardiovascular diseases. These diseases have been on the rise, exacerbated by the COVID-19 pandemic, and require significant investment in prevention and treatment.

Azrul Mohd Khalib, CEO of the Galen Centre, emphasized the critical need for increased funding in the health sector. "If we are to deal with existing health issues, ageing equipment, retaining skilled personnel, preparing and ensuring resilience to future pandemics such as COVID-19, much of Malaysia’s health infrastructure, including its people, needs additional investments and modernizing," he stated.

Contradiction to Previous Commitments

The decision to divert vape tax revenue to the federal consolidated fund is seen as a stark departure from the government's earlier promises. The Galen Centre had previously called for a significant portion of this revenue to be earmarked for health initiatives. This redirection, according to the think tank, undermines efforts to address the growing burden of NCDs in Malaysia.

Economic Implications of Non-Communicable Diseases

The economic impact of NCDs cannot be overstated. According to the Malaysian Ministry of Health and the World Health Organization, cardiovascular diseases, diabetes, and cancer result in nearly RM billion in productivity losses annually. The chronic nature of these diseases means that patients require prolonged medical care, leading to escalating healthcare costs.

A Call for Reinvestment in Health

The Galen Centre has urged the government to reconsider its decision and reinvest vape tax revenue into health initiatives. This includes increasing the health budget to between RM35 and RM40 billion, with a focus on preventing and treating major diseases. Additionally, there is a call for a sustainable cancer fund and investments to improve healthcare infrastructure in regions like Sabah and Sarawak.

Redirecting vape tax revenue away from health initiatives is a controversial move that has significant implications for public health in Malaysia. The Galen Centre for Health and Social Policy's criticism highlights the need for a committed approach to addressing the country's health challenges. By reinvesting in health initiatives, the government can make substantial progress in combating non-communicable diseases and improving the overall health infrastructure.


Read More

Mortgages Malaysia
Image Credits: Unsplash
MortgagesJuly 9, 2025 at 1:00:00 PM

Alternative credit scoring for mortgages gets green light

For years, mortgage lending has hinged on a single number: your FICO score. It’s the invisible hand behind your approval, your interest rate,...

Travel Malaysia
Image Credits: Unsplash
TravelJuly 9, 2025 at 12:30:00 PM

TSA ends shoe removal requirement at US airport security

A major change is taking place at airport security checkpoints across the United States: Travelers will no longer need to remove their shoes...

Economy Malaysia
Image Credits: Unsplash
EconomyJuly 9, 2025 at 11:30:00 AM

France Marseille wildfire forces airport closure and mass evacuations

While summer tourism picks up across Europe, France’s second-largest city is facing a very different disruption: a raging wildfire that’s scorched 700 hectares...

Economy Malaysia
Image Credits: Unsplash
EconomyJuly 9, 2025 at 11:30:00 AM

Singapore stocks steady as STI gains 0.4% despite fresh wave of US tariffs

Singapore may have dodged the latest round of US tariffs, but the message to its ASEAN neighbors is unambiguous: differentiation is back on...

Economy Malaysia
Image Credits: Unsplash
EconomyJuly 9, 2025 at 11:30:00 AM

Hong Kong stocks drop on China deflation fears

The latest slide in Hong Kong’s equity markets is not just a passing correction. It signals growing discomfort with the durability of China’s...

Economy Malaysia
Image Credits: Unsplash
EconomyJuly 9, 2025 at 11:30:00 AM

Malaysia’s market holds steady despite 25% Trump tariff blow

While a 25% US tariff hike on Malaysian goods could have rattled confidence, the actual market reaction was surprisingly measured. The FBM KLCI...

Finance Malaysia
Image Credits: Unsplash
FinanceJuly 9, 2025 at 11:00:00 AM

Asian currencies steady amid renewed U.S. tariff risk

The mild but consistent consolidation of key Asian currencies—ranging from the Thai baht to the South Korean won—is beginning to reflect more than...

Politics Malaysia
Image Credits: Unsplash
PoliticsJuly 9, 2025 at 10:30:00 AM

Syrian war crimes evidence exposes platform safety blind spots

A death factory. Over 50,000 images. And for over a decade, near silence. This isn’t a recap of Syria’s civil war. It’s a...

Economy Malaysia
Image Credits: Unsplash
EconomyJuly 9, 2025 at 10:30:00 AM

China continues to face subdued price growth in June

June’s inflation data offered little surprise—and even less reassurance. China’s Consumer Price Index (CPI) rose just 0.2% year-on-year, while the Producer Price Index...

Politics Malaysia
Image Credits: Unsplash
PoliticsJuly 9, 2025 at 10:30:00 AM

Grok’s antisemitic posts reveal deep flaws in Musk’s AI strategy

Elon Musk’s AI chatbot Grok is facing international scrutiny after publishing a series of visibly antisemitic posts on X. What looked at first...

Finance Malaysia
Image Credits: Unsplash
FinanceJuly 9, 2025 at 10:00:00 AM

Bursa market activity slows in anticipation of OPR decision

Trading across Bursa Malaysia was notably subdued this week, with volumes thinning and sectors drifting into quiet stasis. On paper, the lull appears...

Economy Malaysia
Image Credits: Unsplash
EconomyJuly 9, 2025 at 9:30:00 AM

Wall Street dips amid uncertainty over trade policy

There is a strategic dissonance playing out in real time. On the one hand, Wall Street remains tethered to growth optimism and earnings...

Load More