JOHOR BARU: The Federal Government should encourage companies and individuals with investments abroad to contribute to Tabung Harapan Malaysia, says the Malaysian Indian Commerce Association.
Its president, P. Sivakumar (pic), lauded the Government for setting up the fund, adding that there were thousands of companies and sole proprietor businesses that could help settle the nation’s debt.
“The Government should offer attractive tax incentives for them to donate to this fund.
“Set a minimum target of RM5,000 per company and give them the tax rebate five years from now,” he said, adding that the Government would be able to raise billions to pay off its RM1trillion debts.
Sivakumar, who is also the Johor Indian Business Association president, added that the tax rebates would encourage companies to donate large sums.
He said the Government should also get local banks to offer better fixed deposit interest rates to attract those with investments abroad to bring the money back.
“With more liquidity in the market, I am sure the economy will improve,” he said, adding that all these were done in the past by India and South Korea when their economies were on the brink of collapse many years ago.
Sivakumar added that the Government needed to move quickly as while the price of oil was at a high now, it might drop and not be able to cushion the “aftershocks in the stock market” due to the cancellation of several mega projects nationwide.
He said with the Goods and Services Tax (GST) now zero-rated, the current oil price would help cushion the government finances until the Sales and Services Tax (SST) is introduced.
“I believe that the people who voted for a change will come forward to help the Government settle its financial woes,” he said in an interview.
On Wednesday, the Government set up the Tabung Harapan Malaysia trust fund for Malaysians to contribute towards reducing the country’s debts.
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