LETTER | The investment, trade and industry minister recently stated the government’s biggest constraint in easing the business community’s burden in light of the West Asia conflict fallout was limited fiscal firepower.

He said: “Unlike some rich countries with surplus cash, we don’t have that,” adding that the government is still servicing about RM1.3 trillion in debt, significantly narrowing the room for aggressive intervention.

He also pointed out that Malaysia imports most of its food requirements, amounting to about RM100 billion annually, leaving the country exposed to global price spikes and supply disruptions.

Plus, energy costs are also a major concern, especially as Malaysia remains vulnerable despite its oil and gas resources.

All this starkly highlights how financially insecure our country is when it comes to providing crucial aid to the common people, especially in light of global crises like the ongoing one.

This is precisely why the government must seriously reconsider making the taxation system truly progressive by increasing corporate taxes as well as implementing a wealth tax together with our Asean neighbours.

We also need to gradually increase our debt monetisation rate.

No reason to refuse

Given how dire and vulnerable the current situation is and the potentially devastating impact on society, there’s no good reason why the government should refuse to implement such crucial and progressive measures.

Take the wealth tax, for example. It was recently revealed that a total of 41 listees on Malaysia’s top 50 richest list recorded increases to their net worth in 2025.

According to Forbes Asia, the collective wealth of tycoons on the 2026 list of Malaysia’s 50 richest was bolstered nearly 30 percent to US$116 billion (RM458.5 billion), up from US$90 billion (RM355.7 billion) the previous year.

Given the sheer amount of wealth these individuals possess and the current dire socioeconomic conditions many face, surely it would not be unreasonable for the government to impose a wealth tax on this particular group so that more funds are available to help support the majority?

This should be seen as a noble way for the country’s super-wealthy to give back to society by paying higher taxes, considering their wealth status compared to that of average Malaysians.

Making our taxation system truly progressive is the best way forward. If these crucial measures are not implemented as soon as possible, the government’s fiscal ability to provide much-needed support to various groups, especially the underprivileged, will remain very limited.

And the result will be further suffering of the majority due to their socioeconomic burdens, as well as a reduction in voter support for the current administration.

The views expressed here are those of the author/contributor and do not necessarily represent the views of Malaysiakini.