Eric Tay Criticises Cash Aid, Urges Focus on Tax Reform

suppadmin | July 24, 2025

MBKS Councillor Eric Tay Tze Kok has questioned the federal government’s recent move to give a one-off RM100 cash aid to Malaysians aged 18 and above, saying it offers only temporary relief and does little to ease long-term financial pressure.

“RM100 may help in the short term buying some rice or petrol but it doesn’t solve the structural issue of tax burden,” said Tay. “Instead of cash handouts, the government should focus on meaningful tax reform.”

He pointed out that with the Sales and Service Tax (SST) now raised to 8%, many middle-income earners are feeling the pinch more than ever. Tay proposed gradual income tax reductions, higher tax thresholds, and relief for small and medium enterprises (SMEs) as more effective and sustainable measures.

“We’re not against aid, but we hope for a more sustainable direction. Winning hearts with handouts is short-term. Empowering citizens through tax relief is the long-term answer,” he added.

Tay also called for greater transparency in government spending and a fairer tax framework. He said aid mechanisms should be simplified to cut down bureaucracy and prevent wastage.

“A truly caring government doesn’t ask how much to give, but ensures how much the people can keep,” he said.