Giving only Langkawi tax autonomy a bad precedent, says economist

Economist Carmelo Ferlito has criticized MP Suhaimi Abdullah's proposal to grant Langkawi tax autonomy, arguing that such a move would set a troubling precedent. Ferlito supports fiscal decentralisation in principle, as it enhances accountability and decentralises decision-making closer to the people. However, he believes this cannot be implemented selectively for just one area, Langkawi.

Doing so would likely prompt similar demands from other regions, resulting in a patchwork of exceptions. Instead, Ferlito advocates for a nationwide approach to fiscal reform, with both revenue and expenditures managed at the state and local levels, while retaining only major national functions at the federal level.