In an open letter to Prime Minister Anwar Ibrahim today, the NGO argued that making non-citizen parents of Malaysian children bear higher fuel costs would “disproportionately impact middle- and lower-income families, where every ringgit counts”.
“This also leads to higher out-of-pocket expenses for Malaysian binational families, which could be directed to the advancement of Malaysian children in these families – reduced funds for extra-curricular activities, tuition or even better quality educational resources, for example,” said the NGO.
Family Frontiers also rejected the claim that non-citizens, including PR spouses, do not pay taxes.
It said spouses who reside in the country for more than 182 days are required to pay taxes on their total taxable income, on the same basis as Malaysians.
“Many of them are husbands and wives of Malaysian citizens, parents of Malaysian children, and long-term residents who have endured years of bureaucratic hurdles to secure legal status in the country they already call home,” it said.
In addressing criticism over the government’s decision not to extend fuel subsidies to foreign nationals, Anwar had reiterated that foreigners do not pay taxes.
“I’m puzzled when the opposition says we are burdening foreigners, claiming they too contribute to the country. I don’t understand. In what part of the world are foreigners treated the same as citizens?” he said.
According to the Inland Revenue Board, tax residency in Malaysia applies to those who stay in the country for 182 days or more of the tax year.
Family Frontiers also argued that giving separate treatment to PR spouses in Malaysia would significantly complicate both raising Malaysian children and committing to a long-term future in Malaysia.
“Constantly navigating a system where one family member is treated differently, or excluded from benefits that others enjoy, can lead to significant stress for the entire family.
“This creates a serious risk of ‘brain drain’, where valuable talent eventually departs for countries offering more comprehensive social security and benefits for long-term residents and possibly even their Malaysian families.
“It’s time to recognise the commitment of PRs by extending essential subsidies to them. This crucial step will not only retain valuable talent, strengthen our economy and reduce brain drain, but also ease their integration into Malaysian society,” said the NGO.