Big firms urged to give money for Covid-19 fight

 

It has been suggested that more high-income earners, including those in GLCs, help top up the kitty. (Bloomberg pic)

PETALING JAYA: An economist and two MPs have called for financial contributions from the corporate sector to the fight against Covid-19.

Reacting to announcements that ministers and deputy ministers will give up three months of their salaries and 800,000 civil servants will contribute portions from their monthly allowances, they say big companies, including government-linked companies (GLCs), should chip in as well.

Economist Ramon Navaratnam, a former deputy secretary-general of the Treasury, suggested that the entire corporate sector follow suit.

Speaking to FMT, he said there had to be a comprehensive plan for everyone to take part in the battle against the pandemic.

Ramon Navaratnam.

“Some should not be left to bear the brunt alone,” he said. “Everyone should share the responsibility of combating Covid-19.”

He gave his support to a proposal that a temporary windfall tax be imposed on large companies profiting from the pandemic, such as rubber glove manufacturers. That call was made last month by economist Jomo Kwame Sundaram.

Klang MP Charles Santiago said only those GLC heads earning more than RM25,000 a month should take a pay cut. Not all of them were earning high salaries, he added.

“It will be a good gesture on their part, but each GLC operates differently,” he said. “Asking those with lower salaries to take a pay cut for three months will only bring them a series of other issues to worry about.”

Santiago also said it was time for the government to go after big companies that were evading taxes, adding that this would be more effective than simply getting others to give up parts of their salaries.

Kapar MP Abdullah Sani Abdul Hamid said it was unfair to force civil servants to give up portions of their allowances at set rates because their liabilities were not all the same.

“I suggest that these contributions or deductions be done voluntarily according to the civil servant’s means. Through this method, we may get more than the RM30 million estimated by the government.”

Abdullah said manufacturers allowed to operate under the current lockdown should be asked to donate to the National Disaster Relief Trust Fund.

Yesterday, chief secretary to the government Mohd Zuki Ali announced that about 800,000 civil servants would contribute fixed sums from their monthly allowances to the fund.

Those under Grade A will contribute 50% of their allowances, followed by Grade B (20%), Grade C (10%), Grades 44 to 56 (5%) and Grade 29 to 41 (RM10).

Ministers and deputy ministers will give up their wages for the months of June, July and August to the fund, Prime Minister Muhyiddin Yassin announced earlier. - FMT