Arya News - Malaysian consumer groups highlight how many continue to be affected by the “middle-income squeeze” – as housing, transport, childcare, education, healthcare and other essential expenses continue to eat into their disposable income.
PETALING JAYA – Budget 2027 must go beyond cash assistance and address rising everyday costs that are putting pressure on Malaysian households, consumer groups say.
M40 households, said Federation of Malaysian Consumers Associations chief executive officer T. Saravanan, are facing a “middle-income squeeze” as housing, transport, childcare, education, healthcare and other essential expenses continue to eat into their disposable income.
“For M40 families, we cannot just look at food, transport or education separately. We need to look at the reality of their entire day and their total household commitments,” he said in an interview.
He said there are families with special-needs children who face additional costs for education, therapy and specialised care.
“Some are also supporting elderly parents. They may have to pay for their parents’ medication, healthcare, transportation, caregivers or special care.
“This segment of Malaysians are effectively supporting two generations – their children as well as their ageing parents,” he said.
Healthcare, noted Saravanan, is another major pressure as medical costs and insurance premiums have increased while some do not cover certain illnesses.
Saravanan said an M40’s household’s financial position cannot be determined purely based on gross income but must take into account disposable income, the number of children and dependents, elderly parents, disability or special-needs care, housing costs and where the family actually lives, he argued.
Asked if M40 households have benefited from government schemes such as Sumbangan Asas Rahmah (Sara) or Sumbangan Tunai Rahmah (STR), he said gaps remain.
“Some families fall into a gap for targeted assistance, earning too much to qualify for substantial aid but still struggling with rising costs. There is also no single targeted subsidy specifically addressing the overall pressures faced by the M40.
“We would particularly like to see greater tax relief or a review of the income tax brackets, stronger support for healthcare and medical protection, incentives for first-time home ownership, affordable childcare and special-needs services, and better public transport in the coming budget,” he said.
Consumers Association of Penang president Mohideen Abdul Kader said Budget 2027 must urgently tackle the liveability crisis in public housing, including a special package to ease living costs for residents.
He asked for an increased investment in social infrastructure and a revamp in the waste management system for public housing.
On healthcare, Mohideen said waiting times at rural and urban health facilities must be cut significantly.
“We also need to increase access to mental health support for all segments of society,” he added.
He urged the government to come up with a strategy to ease traffic congestion and the shortage of parking space in urban areas.
For rural communities, Mohideen called for better access to Internet data and stronger supply chains for farmers and fishermen.
He said rural teachers deserve better welfare while rural schools need improved facilities.