Govt Mulls Raising Tobacco Tax
The potential hike comes after a prolonged moratorium, with no revisions made to tobacco excise rates since September 2014. Currently, the tobacco tax in Malaysia stands at 58.6% of the retail price. Unlike several other nations, Malaysia lacks a formal mechanism for periodic price or tax reviews on tobacco products.
'I agree with the spirit of staying healthy. Not just because I don't smoke, but because of the anti-smoking campaign,' said Anwar, responding to questions about whether the government will revisit tobacco taxes in Budget 2026, to be tabled in October.
He was speaking after attending the Budget 2026 engagement session held today.
Previously, economists had proposed raising the tobacco tax rate to between 60% and 75% as part of wider pro-health tax reforms.
During the tabling of the 13th Malaysia Plan (13MP) last week, Anwar announced that health-centric taxes would be expanded beyond sugar to include tobacco, electronic cigarettes or vapes, and alcohol.
He emphasised that this move is not solely to boost tax revenue, but also to drive behavioural change and curb the rise in non-communicable diseases (NCDs), such as heart disease, stroke, diabetes and cancer – all commonly linked to unhealthy lifestyles.
Anwar also underscored that healthcare remains a key national priority as the public system comes under strain due to medical inflation, the dual burden of infectious and non-infectious diseases, and an ageing population.
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The Star
an hour ago
- The Star
Revving up TVET talent
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'Only then can these financial tools become true enablers of a thriving and competitive TVET ecosystem,' he said. Universiti Teknikal Malaysia Melaka (UTeM) vice-chancellor Prof Datuk Dr Massila Kamalrudin, in an op ed to StarEdu, said the TVET Training Fund is closely intertwined with strategic industry collaboration. 'This ensures participants no longer follow generic training with no added value, but are provided with skills that are relevant to current market needs – such as electric vehicles (EV), automation, renewable energy, semiconductors and artificial intelligence (AI). Prof Massila 'All this time, rural youth have been held back from participating in TVET programmes due to constraints related to cost, location and job opportunities. 'The 13MP breaks these barriers by offering comprehensive financial support that enables B40 and M40 youths to pursue education without heavy financial burdens,' she said, adding that continuous support from all stakeholders will elevate the TVET ecosystem to new levels of excellence. Tahfiz inclusion Describing the move to extend TVET programmes to tahfiz students as 'bold and meaningful', Teh, however, stressed the need for striking the right balance between religious learning and technical training. 'The curriculum needs to be thoughtfully designed so that both are delivered with quality,' he said. Prof Massila said the approach empowers tahfiz students to become self-reliant, pursue entrepreneurship, and contribute meaningfully to the economy. 'The public perception of tahfiz institutions will shift from solely religious centres to hubs for holistic talent development – balancing spiritual and technical excellence,' she said. New expertise Prof Dr Razali Hassan from the Universiti Tun Hussein Onn Malaysia Faculty of Technical and Vocational Education said the Malaysian Skills Certificate (SKM) Levels 6, 7 and 8 under the 13MP must focus on providing workers with high cognitive abilities and strong 21st-century and Fourth Industrial Revolution skills. 'These can be considered 'master skills' and should reflect advanced capabilities,' he said. Prof Razali He also said SKM Levels 6 to 8 should be carefully managed under a single pathway to avoid confusion, as having both the Department of Skills Development (JPK) and the Malaysian Qualifications Framework (MQF) oversee higher-level TVET could complicate their implementation. Expanding on this, Teh said SKM Levels 6 to 8 represent a big step towards putting vocational education on equal footing with academic pathways. 'By aligning these levels with diploma and degree standards, it helps change how employers and universities view TVET graduates, not just as hands-on workers, but as skilled professionals with real expertise. 'This could lead to better job opportunities, fairer pay and even open doors for further studies,' he said, adding that most importantly, it sends a strong message that choosing TVET is not a backup plan, but a smart and respected path forward. High-growth, high-value (HGHV) Prof Massila said this restructuring equips the country's strategic sectors with a highly skilled workforce capable of filling critical positions worth billions of ringgit. It is not just about training the youth, but also about raising the country's economic resilience and increasing industrial productivity, she said. This, in turn, creates premium jobs with higher salaries – thus raising the standard of living of the people. The move also attracts high-quality investment. International investors want to see a competent workforce before investing, and TVET HGHV provides that guarantee, she added. Better wages Prof Razali welcomed the extension of minimum wage protection to TVET graduates and semi-skilled workers, under MASCO Code 8 and above, calling it a necessary step. 'To meet occupational standards, these workers undergo formal training that incurs cost. It's only fair they are compensated accordingly,' he said. Echoing this view, Pertubuhan Penggerak Huffaz Berkemahiran Selangor chairman Datuk Ahmad Tajudin Jab said TVET graduates should be entitled to a minimum wage to ensure they can perform their duties in line with occupational standards. Ahmad Tajudin He explained that achieving such standards requires formal education and training, which involves significant costs. Teh, however, cautioned that while extending minimum wage protection is a good start, it is not sufficient on its own to fully reflect the skills and qualifications of TVET graduates and semi-skilled workers. 'While it helps set a basic floor and prevents exploitation, minimum wage doesn't recognise the added value and technical expertise many TVET graduates bring to the table. 'What's needed is a clear skills-based wage structure, one that rewards experience, specialisation and certification levels. 'Without this, there's a risk that skilled workers will still feel undervalued and that could discourage more youth from choosing TVET,' he said. He added that to make the system fairer and more attractive, wage policies must go beyond the minimum and reflect the real worth of technical talent in the job market. Inclusive, ethical reform The 13th Malaysia Plan (13MP) underscores the need for holistic human capital development, a strengthened higher education system, and the integration of Madani values to build a competitive, progressive, and inclusive nation, says the Higher Education Ministry. Initiatives outlined in the plan involve the empowerment of TVET, digitalisation of learning, internationalisation of universities, and the advancement of high-impact research, said the ministry in a statement on July 31. It added that these reforms aim to future-proof the education landscape and align national development with global trends. 'As the main leader in driving the country's higher education agenda, the ministry is committed to playing a comprehensive role in achieving the goals of the 13MP. 'The ministry will intensify efforts across areas, including strengthening governance, rationalising the functions and roles of educational institutions, improving educational outcomes, enhancing educator competence and efficiency, boosting investment in education, empowering lifelong learning, and strengthening the TVET ecosystem. 'In line with the thrust of Malaysia Madani, the ministry will continue to implement policies and initiatives anchored in noble values and driven by the needs of the people,' the statement read. The ministry also emphasised the importance of collective responsibility in making the 13MP a success. 'The real and lasting progress we envision cannot rest on the government alone. 'We call on all stakeholders, higher education institutions, agencies, industries and the community, to join us in this shared mission,' it said. Prof Whitford The 13MP and the National AI Action Plan 2030 are a forward-looking vision for education and talent development. These blueprints signal a decisive move towards nurturing ethical, digitally fluent and globally competitive Malaysians. The 13MP is not just a plan for national development; it's a roadmap for reshaping the human capital landscape of Malaysia. We applaud its emphasis on character, AI literacy, digital skills and entrepreneurship. The government's commitment to paid, compulsory internships and new metrics for graduate outcomes directly supports UoC's initiatives to strengthen real-world readiness. UoC also supports the 13MP's proposed pilot autonomy for universities, recognising this as a critical step towards greater innovation, agility and accountability in higher education. The varsity is prepared to work closely with both public and private stakeholders to ensure high-impact research, academic excellence and internationalisation remain core to Malaysia's tertiary education future. --University of Cyberjaya (UoC) vice-chancellor Prof David Whitford The 13MP represents more than just a planning document. The government is continuing to strengthen its strategies to tackle three national challenges: labour productivity, youth unemployment and skills mismatch. The emphasis on inclusivity and accessibility under the 13MP marks a significant turning point for rural students and marginalised communities. Our hope is that no young person is left behind from the opportunity to build a future through TVET, and that TVET graduates are equipped with the right skills, and that they fill critical workforce gaps to power Malaysia's economy to greater heights. --UTeM vice-chancellor Prof Datuk Dr Massila Kamalrudin The success of the TVET initiatives rests on the government's ability to address the needs of students, particularly at the upper secondary level. Students at this level are divided into two broad categories: the academically inclined (40%) and non-academically inclined (60%). TVET should be provided for the 60% at the Form Four level as this group often struggles academically and may only achieve average Sijil Pelajaran Malaysia (SPM) results. By the time TVET is offered post-SPM, many are no longer interested and prefer to start working, making existing schemes less effective. --Pertubuhan Penggerak Huffaz Berkemahiran Selangor chairman Datuk Ahmad Tajudin Jab
The Star
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Rights of Orang Asli paramount
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The Sun
2 hours ago
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Kampung Angkat Madani initiative boosts rural growth
PETALING JAYA: The government's Kampung Angkat Madani programme has helped close the development gap between rural and urban areas through a community-focused approach, said Prime Minister Datuk Seri Anwar Ibrahim. In a written parliamentary reply, he said RM1 million had been channelled to each village involved in the initiative, with an additional RM200,000 allocated for technical and vocational education and training (TVET) projects. These cover both physical and non-physical components. 'For physical projects, the focus was on building basic infrastructure such as roads, street lighting, internet access and water supply. 'The non-physical projects include health screening, on-site verification of assistance and educational guidance for children who have dropped out of school,' he said in reply to Dr Mohammed Taufiq Johari (PH–Sungai Petani). Mohammed Taufiq had asked how the ministry was monitoring the programme's effectiveness in bridging the rural-urban gap in 2025. Anwar said the programme is monitored through the Madani Adopted Programme dashboard, a centralised platform where leadership teams track progress and submit monthly reports to the Implementation Coordination Unit of the Prime Minister's Department for follow-up action. He said the initiative had accelerated development in rural areas, ensured projects met local needs and delivered a broader impact to village communities. Overall, the programme is expected to directly improve the quality of life and socio-economic status of residents.
