‘Garlands and cuts’ - Charles Santiago slams Labour Day contradictions

THE government is praising workers with “garlands” while simultaneously imposing deep spending cuts that harm them, former MP Charles Santiago said, as Malaysia marked Labour Day.

“Every Labour Day, the speeches come. The gratitude. The garlands,” Santiago said in a statement.

“This year, the backbone of the nation got an additional gift — RM10 billion in cuts,” he added.

On April 29, the Ministry of Finance announced sweeping reductions in public spending, including a 10% cut to essential services, 20% cuts to statutory bodies, and a freeze on hiring.

The government attributed the move to fiscal pressures stemming from a fuel subsidy crisis linked to global geopolitical developments.

Santiago dismissed the justification as insufficient. “Nothing to do with us, the government. Terribly sorry. Do carry on,” he remarked, in a pointed critique of official messaging.

He contrasted the austerity measures with the rapid growth of wealth among Malaysia’s richest individuals.

“While workers were being told to tighten their belts, Malaysia’s 50 richest billionaires grew their wealth by RM103 billion in a single year,” he said.

“This is not a crisis of scarcity… This is a political choice.”

The cuts are expected to hit key sectors, including healthcare and education. Santiago highlighted worsening conditions in public hospitals, noting that patients at major facilities face long delays for treatment.

He also questioned the necessity of the cuts, arguing that alternative revenue measures were available.

In a country where a 2% wealth tax on the richest could generate billions, you don’t cut wards, classrooms, or meal programmes. You choose not to,” he said.

Beyond immediate fiscal policy, Santiago pointed to deeper structural issues in the economy.

He noted that every ringgit the Malaysian economy produces, workers take home just 33 sen, comparing it unfavourably with higher shares in advanced economies.

“The middle class is not growing. It is being hollowed out.”

He added that financial insecurity remains widespread, with many Malaysians unable to handle emergency expenses and a large proportion of retirement fund contributors at risk of inadequate savings.

Santiago also raised concerns about rural communities, particularly smallholders and fisherfolk, already facing rising fuel costs.

Calling for immediate policy action, Santiago urged the government to implement a wealth tax.

“It is not radical to ask the top one per cent to pay a fair share,” he said. “It is necessary.”

As Labour Day celebrations continue, Santiago said the symbolism of the occasion rings hollow without substantive change.

“The workers will be praised. And somewhere, a billionaire’s wealth will grow by another few million before the day is out.”

“The garlands were lovely, though.” – May 1, 2026