Study: KL is World’s 7th Most Expensive City to Buy Beer, Even Before Govt’s 10% Excise Duty Hike

During the recent presentation of Budget 2026, Prime Minister Datuk Seri Anwar Ibrahim revealed the government’s plan to hike up prices of alcohol to encourage Malaysians to pursue a healthier lifestyle, by raising the excise duty on liquor products by 10%, effective 1 November 2025 (Saturday).

With that being said, alcoholic products will be getting more expensive in Malaysia.

This image is for illustration purposes only.

But, did you know that beer prices in Kuala Lumpur were already considered among the most expensive in the world, even before the increase in excise duty coming into effect next month?

Kuala Lumpur is the world’s 7th most expensive city to buy a beer

This image is for illustration purposes only.

According to a report by Australian commercial news site, news.com.au, which sourced a study by Deutsche Bank Research Institute, an analysis of the costs of living and the prices of various goods across 69 cities in the world suggested that ‘sin’ taxes are making beers more expensive.

They also revealed Kuala Lumpur as the 7th most expensive city in the world to buy a beer, and regionally, the Malaysian capital city is the 2nd most expensive city in Asia to buy a beer, behind Singapore.

Here are the world’s 10 most expensive cities to buy a beer, according to the study released in June 2025:

1. Sydney, Australia
2. Melbourne, Australia
3. Singapore
4. Wellington, New Zealand
5. Dublin, Ireland
6. Birmingham, the United Kingdom
7. Oslo, Norway
8. Kuala Lumpur, Malaysia
9. Geneva, Switzerland
10. Helsinki, Finland

Do note that this data is based on domestic beer served at bars or restaurants.

The excise duty hike will result in a new rate of RM192.50 per 100% volume per litre

Previously, the Confederation of Malaysian Brewers Berhad (CMBB) expressed regret over the government’s decision to hike the excise duty for alcohol by 10% under Budget 2026, saying that the hike will result in a new rate of RM192.50 per 100% volume per litre.

CMBB added that Malaysia already has one of the highest beer excise rates globally, and any increase will further widen the price gap between legitimate and illicit beer. This will pose a threat to Government revenue collection, the industry and consumers.

What do you think about this? Do feel free to share your thoughts in the comment section.

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