Budget 2027 should ease the burden of poor Malaysians

suppadmin | August 19, 2026

Prime Minister Datuk Seri Anwar Ibrahim’s indication that Budget 2027 will include measures to ease the burden of the M40 group is a welcome direction, said SUPP Kuching branch acting secretary and youth chief Nicholas Wung Duk Ying.

However, he said the measures must be practical enough to reduce the actual cost pressures faced by middle-income families.

Wung said many M40 households were often seen as financially comfortable, but in reality they were also affected by rising housing and car loans, children’s education, medical and insurance costs, transport expenses and daily living costs.

“Many M40 families may appear stable on paper, but they still have to manage their monthly expenses carefully.
“They have income, responsibilities and commitments, but often do not qualify for most cash aid or subsidies,” he said.

Wung said the M40 group formed an important part of the economy, including workers, professionals, small traders, young families and SME operators.

He said Budget 2027 should not rely only on one-off aid, but should look at more targeted measures in taxation, childcare, education, housing, healthcare, transport and business costs.

He suggested that the government expand personal income tax relief for expenses such as children’s education, childcare, parents’ medical needs, insurance, skills training and digital devices.

Wung said many young professionals, teachers, engineers, healthcare workers and small business operators in Kuching were classified as middle-income earners, but still faced real financial pressure.

“Based on our grassroots engagement, young M40 families are most concerned about housing loans, childcare fees, children’s education, food expenses, transport costs and supporting their parents,” he said.

He also reminded the federal government not to design M40 policies based only on the cost of living in Peninsular Malaysia.

Wung said Sarawak’s vast geography, higher logistics costs and reliance on air travel for study, work, medical treatment and family matters meant that M40 families in Sarawak faced different cost pressures.

“If policies only look at income figures without considering regional costs, they will not be truly fair,” he said.

He said the Finance Ministry should study an East Malaysia-focused middle-income relief mechanism under Budget 2027, particularly for transport, logistics and household expenses.

Wung added that small traders and SME operators in the M40 group were also affected by rising rental, labour, raw material, electricity and operating costs.

He said tax incentives, low-interest financing, digital transformation grants and business training could help them remain competitive.

“The Prime Minister’s focus on the M40 group is a positive signal. What matters now is that the government listens to families, youths, traders, professionals and local communities before finalising the measures,” he said.

Wung said Budget 2027 would be more meaningful if it could address real M40 concerns, ease household pressure and give more middle-income families greater confidence in the future.