Rather than expanding the SST tax, the Madani government must reach an agreement with our ASEAN neighbors to collectively and gradually increase the corporate tax on our FDIs (foreign direct investments) as well as the wealth tax on the T20 in our respective countries.

Imposing such taxes on the wealthy classes is far more effective than expanding the SST which will certainly worsen the socioeconomic status of the B40 and M40. one way or another.

I realize that our leaders are very reluctant to increase taxes on FDIs and the T20 due to their strong influence on our economy. These groups are the major drivers of our industries and economy.

But the reality is that the government does not have enough funds to substantially uplift the rakyat’s socioeconomic status due to our policy of imposing too low corporate and wealth taxes.

Indeed, since the 1980s, we have been increasingly reducing corporate taxes and keeping our minimum wages suppressed in competition with our ASEAN neighbors in order to attract more FDIs.

Such policies have severely impacted our government’s financial status, and thus its ability to spend sufficient funds on crucial pro-people programs including significantly increasing minimum wages, establishing a more protective pension system as well as general welfare net, improving low-cost apartments’ conditions, consistently maintaining basic services and facilities, greatly improving the public bus system, building a lot more government hospitals as well as public universities, etc.

As a result, our society still has many serious socioeconomic problems and many people’s financial securities are relatively weak.

The existing system is too friendly towards investors and the T20.

Our taxation system must be reformed to be more progressive and fairer for the common people’s benefit. This can be smartly done by our government working with other ASEAN countries to collectively increase corporate and wealth taxes.

This move can prevent the migration of the rich class and FDIs from any one ASEAN country like Malaysia to another to avoid paying those higher taxes.

In addition, we must work with our ASEAN neighbors to collectively strengthen regulations, controls and monitoring to prevent any fraud or evasions of paying the rightful amount of taxes by the T20 and the corporations based on their true net worth.

Another crucial effort that can increase government funds is the reduction of salary levels and any allowances and bonuses that our politicians are entitled to receive, whether they are ministers, directors of any government department, MPs, or ADUNs.

The funds saved can be directed towards crucial pro-people programs to improve the socioeconomic conditions of the M40 and B40 groups.

All these policies and actions will surely increase public support for the government and greatly increase their chances of winning the next general election.

(Raveen Veerasenan Jeyakumar is a writer who is passionate about social and environmental issues, whose work can be found at https://substack.com/@fixingoursociety.)