Over-taxing wealthy could harm Malaysia’s economy, Gerik MP says
"Our concern is that if too much pressure is placed on the T20, they may reduce their investments in the national economy."
KUALA LUMPUR - Gerik Member of Parliament Fathul Huzir Ayob has raised concerns regarding certain aspects of the 2025 Budget, particularly about the imposition of taxes on high-income earners and its potential impact on the economy.
While he acknowledged that several segments of society would benefit from the budget, he emphasised that there were groups who might face difficulties due to taxation policies.
"Some citizens are stuck in a situation where they have to pay taxes, but at the same time, they do not qualify for government assistance. These people become the unintended victims of the system," Fathul said, expressing his disapproval of the government's approach to taxing the wealthy.
He pointed out that the high-income group, commonly referred to as T20, played a vital role in Malaysia’s economy.
"In my view, the 'wealthy' referred to are the T20, and they are significant contributors to the country's economy. They are the business owners and factory operators," he said.
Fathul warned that placing too much pressure on the T20 could discourage them from investing in the country.
"Our concern is that if too much pressure is placed on the T20, they may reduce their investments in the national economy. This is what we are worried about," the Perikatan Nasional MP said when met on Friday.
He also clarified that his views were not based on political opposition but on economic logic.
On the broader budget, Fathul noted that while there were increases in allocations, he remained cautious about potential challenges ahead.
"There have been mentions of possible fuel price hikes and a new tax system next year. Even though this budget offers more to the people, these issues may end up causing concern among the public," he remarked.
Therefore, Fathul acknowledged that while some groups would be satisfied with the 2025 Budget, others might face challenges.
"For this 2025 budget, some segments of society will be content, but there will be others who may struggle," he said.
