(Also published on The Malaysian Insider)
The ETP will be bad for wage-earners. Workers’ share of national income under the ETP will be just 21 per cent compared to 28 per cent currently. Wage-earners’ losses will be corporate gains. The corporate share of ETP income will be 74 per cent, up from 67 per cent today. We fully support a vibrant corporate sector, but a healthy middle class is also crucial for sustainable high-income status. In developed economies, wages take about 50 per cent of national income.