why is it that malaysia does not impose tax?

Question

are there any hidden disadvantage to it? what's the minimum salary for a starting employee to be able to live there?

Update:

OMG, why are there so many spammers in my answers!

Answer 1

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why is it that malaysia does not impose tax?

Everything and anything are already double and triple taxed in malaysia.

Example1:They will say that the price of petrol is cheap but they never tell you that you paid more than 100 % in taxes and you be paying bank loans for 9 years for a car.

Example2: You eats at kfc or McD .All the ingredients and material to make a piece of fried chicken are already taxed.

And you still have to pay additional 5% govt tax .

If your question is regarding why there are no tax for foreign workers.

It depends on what salary scale.That falls under taxable income.

Just to "import" a foreign worker, you are already paying a levy .

Levy is a tax.

This country does not have a basic minimum salary.

The govt rejected any ideas of setting a basic minimum salary.

But the govt servants often gets a pay rise and bonuses yearly.

Answer 2

because they want to protect their local product

Answer 3

they get money from you in other ways