Why easing supplement taxes might be the boost preventive healthcare needs

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Image for illustrative purposes only. - 123RF

Calls grow for SST cuts to make supplements more accessible in Malaysia.

The Malaysian government should consider making supplements more affordable by reducing the sales and services tax (SST) on these products, experts argue.

This measure would promote preventive healthcare, ease financial strain on the healthcare system, and ultimately benefit the country in the long run.

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Malaysian Dietary Supplement Association (MADSA) member Jonathan Chew

According to Malaysian Dietary Supplement Association (MADSA) member Jonathan Chew, affordable supplements could help reduce long-term healthcare costs.

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He stressed that the cost of treating patients in government facilities, particularly in intensive care units (ICUs), far outweighs the expense of preventive measures.

"Supplements act as a cost-effective way to prevent illnesses, which, in turn, reduces the financial burden on the government and taxpayers," Chew said during an online interview with Sinar Daily.

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Chew emphasised that the SST adds to the manufacturer's costs, which are subsequently passed down to wholesalers, distributors, and retailers, ultimately increasing the price for consumers.

He highlighted that removing the tax would lower costs for consumers, making products more accessible and affordable, especially for those with limited budgets.

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"If supplements are made more affordable, more people will use them, leading to better health, fewer illnesses, and ultimately reducing the overall burden, a positive chain effect," he added.

A healthier population would not only lessen the strain on public healthcare but also create a more productive workforce.

Malaysian Dietary Supplement Association (MADSA) president Datuk Dr M Rajendran

In the meantime, MADSA president Datuk Dr M Rajendran supported the call for affordable supplements and stressed the importance of regulating the industry.

Dr Rajendran also encouraged the government to implement broader initiatives to promote preventive healthcare, which would save costs in the long run while fostering a healthier population.

He explained that unlike pharmaceutical companies that rely on insurance payments, the dietary supplement sector is funded directly by consumers, making affordability a critical issue.

"We urge the government to lower the cost, making it more affordable for consumers.

"A small reduction in SST perhaps 5 or 10 per cent could create a ripple effect throughout the supply chain, significantly reducing the final cost for consumers," he said.

Dr Rajendran said that the economic benefits could be substantial, even if the effects take several years to materialise and these changes may not show results immediately, however will benefit future generations by fostering a healthier and more sustainable society.

"It may seem like a small number, but from a macroeconomic perspective, it can have a significant impact on society and the government,” he added.

Both experts agree that the proposed tax reductions and a stronger focus on regulation aim to position supplements as an accessible tool for preventive healthcare, benefitting both individuals and the nation.