Malaysian consumers are bracing for a noticeable change in their fruit baskets as the expanded Sales and Service Tax (SST), dubbed SST 3.0, takes effect on July 1, 2025. Among the various goods now subject to a 5% sales tax are a range of imported fruits, a move that is set to impact consumer spending habits and potentially reshape dietary choices across the nation.
Previously, many imported fruits enjoyed an exemption from sales tax. However, under the new SST regime, popular choices such as apples, oranges, grapes, cherries, and berries, along with certain tropical fruits like imported bananas, pineapples, and rambutans, will incur this additional levy, leading to an average rise of 5% on their retail price. The Ministry of Finance (MOF) has clarified that locally grown fruits remain exempt, aiming to cushion the impact on the cost of living for essential items.
Rising Prices at the Pasar and Supermarket
The most immediate and direct impact on consumers will be higher prices for imported fruits. Fruit sellers are already anticipating the increase, although some remain cautiously optimistic about sustained demand. However, the additional 5% sales tax will undeniably be passed down to consumers, leading to an uptick in the retail price of these goods. For a country that already relies heavily on imported food, this could contribute to an overall increase in food expenditure for households.
Before vs After SST Prices for 5 Common Imported Fruits
Here’s a quick comparison chart showing before vs after SST prices for 5 common imported fruits, based on a 5% Sales Tax (SST) applied after 1 July 2025.
| Imported Fruit | Origin | Avg. Price Before SST (RM/kg) | Est. Price After SST (RM/kg) | Est. Amount of Fruit per 1kg |
| Blueberries | USA | RM45.00 | RM47.25 | 4 packs |
| Cherries | Australia | RM65.00 | RM68.25 | 85-100 cherries |
| Seedless Grapes | South Africa | RM28.00 | RM29.40 | 3-4 medium bunches |
| Fuji Apples | China | RM12.00 | RM12.60 | 3-4 apples |
| Korean Pears | South Korea | RM18.00 | RM18.90 | 2-3 pears |
NOTE: Actual SST rate and prices may vary depending on supplier markups, import logistics, and final point-of-sale pricing. This chart uses a 5% SST for illustrative purposes based on common HS code classifications for non-essential imported fruits.
Health and Habit Drive Imported Fruit Demand Among Malaysians
Beyond mere preference, certain imported fruits hold crucial importance for Malaysian consumers due to several factors:
- Nutritional Diversity and Availability: While Malaysia boasts a rich variety of local fruits, the climate and growing seasons limit the consistent availability of certain nutrient-rich options year-round. Imported fruits like apples and oranges are significant sources of Vitamin C and fiber, particularly during periods when local alternatives might be scarce or not in season. Berries, while not locally grown, are increasingly recognized for their antioxidant properties and are incorporated into health-conscious diets.
- Dietary Habits and Culinary Uses: Over time, imported fruits have become integrated into the dietary habits of many Malaysians. They are commonly consumed as snacks, included in breakfast routines (like muesli with berries or sliced bananas), and used in various desserts and culinary preparations. This established consumption pattern means that price increases will directly affect daily food costs and potentially alter established eating habits.
- Specific Dietary Needs and Recommendations: Healthcare professionals often recommend the consumption of a diverse range of fruits, including those rich in specific nutrients not readily available locally. For individuals with certain health conditions or those following specific dietary guidelines, imported fruits like grapes (for their resveratrol content) or specific types of berries might be particularly important.
- Consumer Choice and Preferences: Malaysians have grown accustomed to the availability of a wide variety of fruits from different regions, each offering unique tastes and textures. Limiting access to these choices due to price increases can negatively impact consumer satisfaction and the overall food experience.
Imported Fruit Tax May Change the Taste of Rakyat’s Diets
The imposition of SST on these crucially important imported fruits could lead to a shift in consumer purchasing behavior. Consumers might:
- Reduce consumption of imported fruits: Faced with higher prices, some consumers, particularly those in the B40 income group, may opt to buy fewer imported fruits or cut them from their diet altogether, potentially impacting their nutritional intake.
- Opt for local alternatives: The government’s exemption of locally grown fruits from SST is a clear incentive to encourage consumption of domestic produce. Fruits like guavas, langsat, duku, pomelos, and pulasan are being highlighted as affordable and sustainable alternatives. This could boost demand for local farmers and reduce the carbon footprint associated with importing goods from afar. However, these alternatives may not always offer the same nutritional profiles or meet specific dietary needs.
- Seek cheaper sources or varieties: Consumers may become more price-sensitive, looking for discounts or shifting to less expensive imported fruit varieties, if available, potentially compromising on quality or nutritional value.
- Impact on healthy eating habits: While the MOF asserts that essential goods are exempt, concerns have been raised by some consumer groups that taxing certain imported fruits, especially those considered staples for health reasons by many, could discourage healthy eating habits.
SST 2025: Boon or Bane to the Fruit Market?
For consumers across Malaysia, adapting to the new reality of taxed and often crucial imported fruits will involve adjusting their budgets and potentially their dietary choices. While the government has provided a grace period until December 31, 2025, for businesses to comply with the new SST structure without penalty, the price adjustments at the retail level are expected to be immediate.
The long-term impact on the Malaysian fruit market remains to be seen. It could foster a stronger local fruit industry, reducing reliance on imports and promoting agricultural sustainability. However, for consumers accustomed to a wide variety of imported fruits, many of which play a crucial role in their nutrition and dietary habits, the expanded SST marks a tangible increase in their cost of living, urging a re-evaluation of their spending and consumption patterns, potentially at the expense of nutritional diversity.
Navigate Malaysia’s SST Changes with Confidence
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