By Kua Kia Soong
The prime minister has started a “Save Malaysia Fund”, ostensibly to help plug the apparent RM1 trillion debt gap by calling on “patriotic Malaysians” to contribute to the fund.
First, there is dispute between economists as to the actual size of the national debt depending on whether we include government guarantees and lease payments under public-private partnerships. Then, it is clear that two important issues need clarifying:
- How will such a “Save Malaysia Fund” be utilised?
- Who is best positioned to lead this noble drive to “save Malaysia”?
From what are we saving Malaysia?
During its election campaign, Pakatan Harapan made it very clear that it could solve the economic problems of Malaysia as long as it was in charge and the country could be saved from the rotten Barisan Nasional government.
After GE14, the new finance minister reiterated that the new government could solve all the accounting problems despite the abolition of GST. Just yesterday, it could pull RM40 million out of its hat to pay for televising the World Cup. So what is RM145 million to pay off the 1MDB bond coupon payment that is due soon? I’m sure the wealthiest individuals in the Council of Eminent Persons can easily write a cheque for that paltry sum considering how much they are worth…
So what is this ‘Save Malaysia Fund’?
Unless the new government specifies the purpose of this so-called “Save Malaysia Fund”, who knows how it will be spent? This is Transparency 101. I propose that considering the dire plight of the indigenous peoples and the B40 in our country, this fund be called the “B40 Fund” and specifically be used to uplift their livelihoods in an attempt at wealth redistribution in our society and to bring us into the high-income bracket.
Forbes 50 & T1 should lead the way
And it is a no-brainer that it should be the Forbes 50 wealthiest persons and the top 1% in our society who should show us how to “save Malaysia” from the supposed debt hole. Since Robert Kuok is in the Council of Eminent Persons and is none other than THE richest man in Malaysia with a net worth of RM60 billion, he is well-suited to lead the donations.
Daim Zainuddin, the chairman of this council, is certainly one of the richest Malays in Malaysia; he, too, can lead by showing us how much he is prepared to donate to this fund. In 1984, his total net assets were already estimated at nearly RM1 billion.
Besides these two, Prime Minister Dr Mahathir Mohamad’s eldest son Mokhzani Mahathir is among Malaysia’s 50 richest with a net worth of more than RM1 billion. His other son, Mirzan, is certainly among the top 1% wealthiest Malaysians.
To remind Malaysians, Malaysia’s 50 richest persons (or the top 0.0017%) have a total wealth of US$70 billion, or more than RM280 billion, while the total wealth of the B40 is only RM20 billion.
In other words, income inequality is getting worse and there is no proper welfare system for Malaysians, the majority of whom do not earn enough for retirement, never mind the others who lose their jobs or are retrenched. Thus, we can “save Malaysia” by using the fund for a public social security or retrenchment fund for workers.
Wealth redistribution is crucial
For too long, the government of the day has not had the political will to initiate wealth redistribution and to narrow the income gap in this country. Surely it is time for this Government of Hope to initiate this and to ensure that this fund is not siphoned off for other purposes.
Not just donations, but progressive taxation
Donations by the wealthy and charitable philanthropy will not solve the problem of growing income inequality, either. The increasingly serious gap in income needs to be addressed through progressive taxation on the high-income earners, their property and capital gains, and effective tax laws to ensure there are no tax loopholes for the super-rich T1.
Rigorous legislation is also vital if we are to curb the practice of transfer pricing that enables the largest corporations to stash their profits in off-shore, tax-free havens. Capital allowances and tax holidays for foreign firms must be reviewed while a tax should be imposed on all international financial transactions and hedge funds.
So, if we have a “Save Malaysia Fund” to save the nation from this debt hole, let it be the wealthiest 1% who lead the campaign, and let the fund be used for lifting the B40 out of their poverty trap and bringing us closer to becoming a high-income society.
Kua Kia Soong is the adviser to Suaram.
The views expressed are those of the author and do not necessarily reflect those of FMT.