KUALA LUMPUR – Former prime minister Tan Sri Muhyiddin Yassin has earned himself another nickname – Bapa Lockdown – as his predecessor Datuk Seri Najib Razak blames him for the nation’s “critical finance” in Dewan Rakyat today.
This comes amid Najib’s (Pekan-BN) Budget 2022 debate where the economic impact of the various movement restrictions implemented during the pandemic cropped up.
Najib, who served as prime minister from 2009 to 2018, said the “half-baked” lockdowns implemented in Malaysia to curb Covid-19 infections were among the longest in the world and were far from effective.
He added that despite the lockdowns, the death and infection rates are among the highest in Asean and possibly the world.
“Although there are those who point out that RM600 billion was spent in the 18 months, it did not benefit the lives of the rakyat that much. That is why the nation’s finances are at a critical level.”
He also expressed concerns over the proposed windfall tax and foreign income taxation policies, saying while they are temporary policies, it stands to erode investor confidence.
He reminded the government that Malaysian tax rates are among the highest in the Asean region.
“Investors will be worried that these policies will be repeated in the future when the government is desperate for revenue. We must realise that when we pick investors, they choose us too. There are alternative countries for them to invest in.”
Last Friday, the Budget 2022 tabling proposed to increase corporate taxes from 24% to 33% for companies exceeding a RM100 million profit threshold.
Also, Najib said previously incomes made abroad that are brought into the country were exempted from double taxation.
He said the exemption encouraged Malaysians to bring back the monies into the local economy, and if these incomes are taxed, companies and individuals will hoard their earnings abroad.
Instead, he recommended a tax amnesty and exemption for that category with the condition that 30% are invested in equities, property, or local businesses during the first year the monies are brought back.
Meanwhile, Najib said welfare initiatives must be implemented well to make a difference in the people’s lives.
“Refrain from following the approaches done in the past, as many supposedly qualified for aid were suddenly denied with unjustifiable excuses.”
Additionally, he made reference to comments on his Facebook page where EPF i-Citra withdrawals were not included in Budget 2022.
He said he is aware that there are many individuals who would like to make RM10,000 withdrawals from their EPF accounts to pay for debts or fund their small businesses.
“I really hope the maximum limit of i-Citra withdrawals is raised to RM10,000 as it is very much needed by the rakyat.
“This is not a populist move, but a necessity based on the situation in the country,” he said. – The Vibes, November 1, 2021
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