The concern on the rising of living cost is a global one. The living cost essentially will involve food supply, housing and transportation cost. In fact, there’re various factors that contribute to the rise in the price of goods. It is worrisome as it hurts the people, especially the poor. Besides that, increasing the fuel price is another concern as when fuel costs higher, the transportation cost will also be increased and then lead to higher price of goods and services.
Thus, a reduction in the personal tax rates will appeal to high income earners working in Malaysia and it could attract more foreign talents to work as it will allow them to retain higher level of disposable income.