Human Writes: A nation’s true wealth is the well-being of all its people

For Malaysia to become truly wealthy, prosperity must be shared more fairly, and poverty tackled, which will support economic growth. — Image: 123rf

Tell me, does Malaysia feel like a wealthy country? Last week, the government announced a plan for Malaysia to become a “high-income nation” by 2030.

Really? Yes, there is wealth in the country, but ask ordinary Malaysians and you might hear another story. To many, prosperity feels out of reach. In recent years, I’ve heard many people are grappling with the rising cost of living while wages remain stubbornly stagnant.

Some even struggle with basic survival. A 2024 Unicef study of families living in 16 low-cost public housing units in Kuala Lumpur showed eight of 10 households struggled to cover essential expenses. Shockingly, half the children were reportedly eating fewer than three meals a day.

The country’s wealth is failing to reach the lower- and middle-income groups (B40 and M40). The reasons for this include unequal wealth distribution, stagnating wages, a lack of social safety nets – and, of course, deep and endemic corruption.

Malaysia lost RM277bil due to corruption in just five years, from 2018 to 2023, the Malaysian Anti-Corruption Commission (MACC) estimated earlier this year. To put this in perspective, this staggering figure is almost as much as the country’s entire 2020 budget, which was used to fund public services, upgrade schools and clinics, build roads and so on. Some of the stolen billions were lost in lavish extravaganza – luxury Beverly Hills apartments, a multi-million dollar painting, a Hollywood film, a private jet, and a superyacht.

Despite efforts to combat corruption, progress has been slow. New stories keep coming up, some downright crazy. Last month, a panicked project manager of a construction company desperately tried to burn one million worth of RM100 banknotes as his house was being raided. The anti-corruption officers still retrieved RM7.5mil in cash, luxury watches, gold coins and jewellery – all believed to have come from bribes for project procurement tenders.

We need our institutions, enforcement bodies, and judiciary to be truly independent and free from political pressure so that all corruption cases are pursued properly and apt penalties meted out. We’ve repeatedly seen those accused of corruption – including high-profile public figures – slip through the cracks without consequence, or enjoy leniency. Last year, the sentence and fine were reduced for former prime minister Datuk Seri Najib Razak.

Last week, Prime Minister Datuk Seri Anwar Ibrahim questioned the wealth of the sons of Tun Dr Mahathir Mohamad. Two sons previously declared assets worth around RM1bil and RM246mil to the MACC. “If they are not able to give a satisfactory explanation of where the money came from, then they must return it,” he said.

Governments need the means to investigate unexplained wealth. Former Klang MP Charles Santiago called for Malaysia to have an “Unexplained Wealth Order” (UWO) to hold elites accountable, citing the United Kingdom’s model, which is a powerful tool to fight illicit wealth as it does not involve criminal proceedings and shifts the burden of proof to the suspect.

He said in just one year, UK enforcement agencies recovered nearly £63mil (RM348mil) through UWOs. “Malaysia can do the same, recover stolen wealth without dragging cases through the courts for decades,” he says.

“Ordinary Malaysians must prove their income before receiving aid, loans, scholarships. But those with mansions and millions rarely face the same scrutiny. This isn’t about rivalry but fairness. We need a system where no one is beyond accountability, no matter how powerful.”

A system where the rich and powerful can exploit loopholes and siphon off public funds undermines economic growth and starves services such as education and healthcare, entrenching a cycle where the rich get richer and the poor cannot escape poverty. 

Wealth inequality is an issue here. A World Bank report this year found that Malaysia has the highest rate of income inequality among peers nearing high-income status. Another recent study, by economists Muhammed Abdul Khalid and Zouhair Rosli, found that in 2022, the top 1% of earners in Malaysia captured 11.4% of national income, and the top 10% took 35%. Further, since 2016, the wealth of the top 1% has grown, while that of the middle 40% has declined.

Globally, wealth inequality is a growing crisis. The richest 1% now hold about 43% of the world’s wealth, the charity Oxfam says, enabled by monopolistic power, crony connections, and inheritances. They also often pay relatively little or even zero taxes by utilising holding companies, offshore tax havens, or other loopholes. Some economists and governments are now calling for a wealth tax. One proposal is to tax the super-rich 2% of their wealth annually.

A wealth tax would bring in needed revenue. Malaysia’s tax system needs reform anyway. It favours the wealthy – who pay less than peers in comparable countries, face no inheritance taxes, and enjoy loopholes and exemptions – while placing a heavy burden on middle-income wage earners.

For Malaysia to become truly wealthy, prosperity must be shared more fairly, and poverty tackled, which will support economic growth. A nation’s true wealth cannot be measured just in ringgit, but in the wellbeing of all its people.

Human Writes columnist Mangai Balasegaram writes mostly on health but also delves into anything on being human. She has worked with international public health bodies and has a Masters in public health. Write to her at [e-mail]. The views expressed here are entirely the writer's own.