00:00Malaysia's middle class will be among the biggest beneficiaries of targeted subsidies
00:05and tax relief in Budget 2026, according to the Finance Ministry.
00:09The statement comes amid criticism that the budget was too focused on the B40 Group.
00:14Its secretary-general, Johan Mahmoud Murikan, said maintaining targeted electricity and
00:20fuel subsidies was a deliberate move to support the M40, as they typically consume more electricity
00:25and fuel than low-income households.
00:28Previously, some critics said the budget offered little to M40 Malaysians, pointing to stagnant
00:33cash aid allocations and questioning the effectiveness of raising the minimum wage.
00:37Because imagine what the World Bank would advise us is that we put everything up to market price
00:44and then we maybe give a flat cash assistance to everyone.
00:49But we all know that when it comes to whether it's electricity, it comes to fuel,
00:54the middle class consumes a lot more.
00:56Johan added that targeted fuel subsidies, such as Budi 95, are particularly beneficial for the middle class.
01:03So when you have something like your Budi 95, which allows Malaysians to continue buying at a
01:08subsidised price of RM1.99, actually that's more pro-middle class rather than B40, because they're
01:15effectively getting a bigger slice of the subsidy.
01:19Johan said the budget also refines tax reliefs mainly enjoyed by the middle class, who are, on average,
01:25higher-income taxpayers than the B40.
01:28This year's measures include extending childcare benefits from 6 to 12 years, increasing relief for children with
01:34autism or Down syndrome, providing RM1,000 in domestic tourism relief, and expanding stamp duty exemptions for homebuyers.
01:41These are all certainly only really enjoyed by the middle classes.
01:45Sometimes I feel, maybe as Ministry of Finance, I feel it's unfairly branded as just for the B40.
01:50Certainly subsidies and tax reliefs are certainly the way in which middle class benefits a lot more than the proverbial B40.
01:59On the cost of living, Johan said that while headline inflation remains modest, food and dining out costs have risen
02:05faster than other categories, meaning price pressures are felt more acutely.
02:10Policies such as Sara and Jualan Rahma are designed to address those issues and provide targeted support.
02:16Imran Aref, FMT.
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