M40 households get fair share under Budget 2026, says govt

Free Malaysia Today

MoF secretary-general Johan Mahmood Merican defends the government’s initiatives aimed at uplifting Malaysia’s middle-income earners.   Read More:  https://www.freemalaysiatoday.com/category/nation/2025/10/30/m40-households-get-fair-share-under-budget-2026-says-govt   Laporan Lanjut:  https://www.freemalaysiatoday.com/category/bahasa/tempatan/2025/10/30/m40-turut-terima-manfaat-setimpal-dalam-belanjawan-2026   Free Malaysia Today is an independent, bi-lingual news portal with a focus on Malaysian current affairs.    Subscribe to our channel - http://bit.ly/2Qo08ry   ------------------------------------------------------------------------------------------------------------------------------------------------------  Check us out at https://www.freemalaysiatoday.com  Follow FMT on Facebook: https://bit.ly/49JJoo5  Follow FMT on Dailymotion: https://bit.ly/2WGITHM  Follow FMT on X: https://bit.ly/48zARSW  Follow FMT on Instagram: https://bit.ly/48Cq76h  Follow FMT on TikTok : https://bit.ly/3uKuQFp  Follow FMT Berita on TikTok: https://bit.ly/48vpnQG  Follow FMT Telegram - https://bit.ly/42VyzMX  Follow FMT LinkedIn - https://bit.ly/42YytEb  Follow FMT Lifestyle on Instagram: https://bit.ly/42WrsUj  Follow FMT on WhatsApp: https://bit.ly/49GMbxW  ------------------------------------------------------------------------------------------------------------------------------------------------------  Download FMT News App:  Google Play – http://bit.ly/2YSuV46  App Store – https://apple.co/2HNH7gZ  Huawei AppGallery - https://bit.ly/2D2OpNP   #FMTNews

Transcript

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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