Ex-MP wants wealth tax for super-rich, urges 'bold political will'

 

Charles Santiago has urged the government to address the people’s frustration over soaring living costs and poor wages with “bold political will”.

The former lawmaker said if these socio-economic challenges are “tackled head-on, we can reduce anxiety and build a just and fair Malaysia for all”.

Among others, he said introducing a wealth tax on the super-rich would be a viable solution to fund essential social protection and welfare programmes.

“A 2.5 percent wealth tax on Malaysia’s top 50 wealthiest individuals could generate RM10 billion. By redistributing wealth, we can tackle poverty more effectively and ensure that everyone has access to necessities and social security,” he added.

Taking to X, Charles shared the above and other points which he had raised at a webinar on Malaysia’s Madani Economy and the challenges faced by B40 families.

He also recalled meeting a terminally ill woman several years ago who chose to forgo treatment to financially support her family.

“This story reflects the harsh choices many B40 families face daily. Their resilience during the pandemic was remarkable, but many have slipped further into poverty.

“An Ekonomi Malaysia report showed that 20 percent of M40 households moved to the B40 category due to income reductions. This growing economic disparity needs urgent attention.

“Unicef’s ‘Families on the Edge' & 'Living on the Edge' reports highlighted worsening poverty conditions among low-income families, especially female-led households. Eight out of 10 struggle to pay for essentials, and children are severely affected,” he added.

To tackle the issue of undernourishment and stunting among children, Charles said the free meals programme for schoolchildren must be revived.

He suggested that the government collaborate with GLCs and local entrepreneurs to provide meals.

“By engaging local food vendors, including women entrepreneurs, we create jobs and support small businesses,” he added.

⁠Looming crisis

Besides providing tax breaks for EVs, Charles said the Madani government should consider setting up solar panels in low-cost and rural communities, which would reduce energy poverty, create new income streams, and ensure a just transition towards renewable energy.

The former Klang MP also described the lack of savings in the Employees Provident Fund as a “looming crisis”, especially with Malaysia’s increasing ageing population.

“As of September 2023, 6.3 million members under 55 have less than RM10,000 in their accounts. With 5.7 percent of elderly households living in absolute poverty, we need mechanisms like monthly pension aid funded by Kwap (Retirement Fund Incorporated), which has an RM190 billion fund size,” he added.

Charles, who labelled the progressive wage policy as a “step in the right direction”, said it must also cover the three million informal and gig workers who are the most vulnerable.

“These workers are often paid below minimum wage and have no social protection or insurance. Including them in this policy is essential to lift them out of poverty and ensure financial stability,” he said. - Mkini