In a Labour Day message, former Klang MP Charles Santiago said a 2% wealth tax could plug a RM10 billion fiscal shortfall.

“A 2% wealth tax on the richest billionaires alone would generate over RM1 billion,” the DAP man said.

Citing previous reports, Santiago said Malaysia’s 50 wealthiest individuals had increased their fortunes by RM103 billion in a year, bringing their combined wealth to RM458 billion.

On Wednesday, the finance ministry proposed RM5.4 billion in operational spending cuts for the health and higher education ministries as part of measures to save government funds amid the impact of the Iran conflict.

According to the ministry’s directive, a total of RM10 billion could be saved across the board, including RM3.06 billion from the health ministry and RM2.39 billion from the higher education ministry.

However, the cuts will only involve non-critical items.

Santiago said billionaires built their fortunes with the help of state-backed contracts, tax incentives, subsidised financing, and public money.

“The super rich took the profit. It is not socialist rage to suggest the top 1% now pays a fair share,” he said.