KUALA LUMPUR: The government is stepping up support for the M40 as rising living costs continue to squeeze middle-income households, says Deputy Finance Minister Liew Chin Tong.
He said the government had data on the M40 and middle-income group, while the Economy Ministry was conducting a study on the T15 income classification.
“The real problem in our country is that the middle class is smaller than the poorer group.
“What the government wants is for us, one day, to have a middle class that is bigger than the B40,” he said in the Dewan Rakyat on Monday (Oct 19).
Liew was replying to Datuk Haji Adnan Abu Hassan (BN-Kuala Pilah), who asked about assistance for M40 households no longer eligible for targeted aid but still affected by the rising cost of living.
He said Budget 2027 includes measures to ensure the M40 are not left out, including higher tax relief, lower tax rates for selected income bands and expanded tax deductions.
Individual tax relief will be raised from RM9,000 to RM12,000, while tax rates for resident individuals with taxable income of between RM70,001 and RM100,000, and RM100,001 to RM150,000, will be reduced to 18% and 24% respectively.
Other measures include two RM100 SARA Madani payments, extended electricity subsidy protection for households using up to 800kWh a month, and the continuation of the My50 monthly public transport pass.
The MyKomuter50 pass will also be introduced for KTM Komuter users, with commuters expected to save up to RM160 a month on average.
For first-time home buyers, the government has proposed full stamp duty exemptions for homes priced up to RM500,000.
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BUDGET 2027
