What policy mistakes led to the recent methanol poisoning tragedies?

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Policy Missteps Contributing to Methanol Poisoning Tragedies

The recent methanol poisoning tragedies are linked to policy decisions that significantly increased the price of legal alcoholic beverages, driving consumers towards cheaper, unregulated alternatives. In 2016, the Barisan Nasional government implemented a substantial 150% hike in excise duties on locally produced hard liquor, raising the price from RM24 to RM60 per litre. This measure was projected to increase local liquor prices by approximately 75%, making safe, legal options less accessible.
Increased Excise Duties Rendered Legal Alcohol Unaffordable

The excise duty structure for beer was also revised, shifting from a volume-based tax to one based on alcohol content. This change, coupled with the duty increase on hard liquor, resulted in an estimated 10% net excise duty increase for the brewery sector. These significant tax increases effectively priced out many impoverished Malaysians and migrant workers, who could no longer afford legitimate local alcohol brands.
Shift to Contraband Market Fueled by Price Hikes

Analysts had previously warned that such steep excise duty increases would likely stimulate the contraband alcohol market. The Malaysia Liquor Manufacturer and Bottler Association directly attributed the methanol poisoning outbreak to the black market, citing the previous administration's disregard for their concerns regarding substantial tax hikes, which ranged from 150% to 560% on various local alcohol products. This pattern mirrors the growth of the illicit cigarette market following excise duty increases in 2014 and 2015.
Unintended Consequences of Making Safe Alcohol Inaccessible

The core policy error, as suggested, was raising alcohol taxes to a point where affordable, safe, legal liquor became unattainable for vulnerable populations. This forced consumers to seek out cheaper, albeit dangerous, bootleg versions of alcoholic drinks. In the two years following the 2016 tax increases, under the subsequent Pakatan Harapan government, 11 Malaysians and 29 foreigners died from methanol poisoning, with 55 others surviving.

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What policy mistakes led to the recent methanol poisoning tragedies?

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