Sales tax on fruit increases Malaysians’ nutrition problems’
Research report says overall fruit supply is insufficient to meet recommended daily intake of 400g per person
KUALA LUMPUR, Malaysia (MNTV) — A research report has highlighted Malaysia’s significant reliance on imported fruit, saying that while local production is substantial for certain tropical fruits, it falls short of the population’s actual nutritional needs.
The report, by the Khazanah Research Institute (KRI), reveals that in 2022, net imports accounted for 50% of the total fruit supply. The volume of imported fruits doubled between 2010 and 2024, reaching close to $1.04 billion in 2024. Oranges, apples, mandarins, and grapes consistently top the import list.
Despite Malaysia achieving a high Self-Sufficiency Ratio (SSR) for several tropical fruits like papaya and watermelon, the KRI researchers argue that the overall fruit supply is insufficient to meet the recommended daily intake of 400g per person, especially when accounting for significant food waste of perishable produce.
The report examines the impact of the expanded 5% Sales and Services Tax (SST) on imported fruit. While the government has exempted key fruit such as apples, oranges, and dates, many other widely consumed imported fruit remain taxable.
KRI warns that this tax risks making essential fruits less affordable for Malaysians, particularly those in middle and low-income groups who rely on imported varieties. According to the National Health and Morbidity Survey (NHMS) 2024, only one in six Malaysian adults meets the recommended daily fruit intake.
The report emphasizes that fruit are essential goods, not luxuries, and the SST expansion may undermine national nutrition policies by discouraging consumption, potentially exacerbating public health challenges related to unhealthy diets. The authors conclude that imported fruits remain indispensable in supplementing the local supply to meet the population’s dietary needs.
Challenges for local farmers
The report identifies several challenges hindering the scaling up of domestic fruit production. Only 3.9% of Malaysia’s agricultural land is dedicated to fruit cultivation, with the majority allocated to more profitable commodities like palm oil and rubber. Extreme weather events and seasonal fluctuations disrupt supply. A significant demographic challenge exists, with 42.8% of individual farm holders aged 60 and above, raising concerns about the adoption of new technologies and long-term continuity.
Smallholders face difficulties in accessing formal retail markets due to small production volumes and lack of certifications, limiting their bargaining power and profits.
The KRI suggests that strengthening local fruit production requires prioritizing research and development (R&D) for higher-yielding, climate-resilient varieties and increasing technology adoption.
Targeted investments in infrastructure, such as temperature-controlled storage and transport, are crucial to reduce food waste. Additionally, promoting local fruit consumption and supporting smallholders in meeting market standards are essential to enhance the competitiveness of local produce.
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