In this Position Paper, IDEAS put forward the following proposals:
- A Living Wage Tax Credit. Under this proposal, employers will be incentivised – but not required – to increase wages beyond the Minimum Wage, up to a new Living Wage.
- Employee Equity Scheme. Under this proposal, employers will be incentivised to allocate shares to their employees, in order to promote broader distribution of wealth and to provide lower income households with new sources of income and savings.
- Capital Gains Tax. IDEAS proposes the Government should introduce a Capital Gains Tax (CGT), which is a tax on the profits made on the disposal of assets, including shares.
- Government Divestment Strategy. IDEAS proposes the Government initiates a Divestment Strategy to create space for new investment and stimulate local business development.
IDEAS believe these proposals can contribute to a bold new economic strategy in Malaysia and help to make shared prosperity a reality: an innovative approach to reaching a Living Wage and higher ownership of Malaysia’s corporate equity by Malaysia’s workers, combined with liberalisation of Malaysia’s capital markets leading to new opportunities for investors to stimulate growth in the economy, at the cost of a modest tax on the profits they make from doing so.