Malaysia’s Deputy Finance Minister Liew Chin Tong announced that middle-income households (M40) experiencing job loss or income reduction can petition for a reassessment of their eligibility for targeted government assistance. The appeal process allows individuals whose current financial conditions have changed to qualify, even if their previous income records exceeded the qualifying thresholds.
Speaking during Question Time on October 20, Liew emphasized that the reassessment considers present financial circumstances rather than historical income data that may have previously disqualified applicants. Appeals are open daily to accommodate those impacted by unemployment or income drops. The announcement came in response to a supplementary question raised by Datuk Adnan Abu Hassan, who inquired about support options for M40 households facing economic challenges.
Liew also touched on the broader government strategy focusing on income classification and social support. He noted that the Economic Ministry is conducting research on the T15 high-income group, while existing data is available for the M40 and middle-income segments. The Deputy Minister highlighted a persistent structural issue: Malaysia’s middle class remains smaller than the lower-income group (B40). The government aims to expand the middle class to surpass the size of the B40 in the future.
The measures introduced in Budget 2027 are intended to ensure that middle-income households are better supported. These include increased individual tax relief, reduced tax rates for specific income brackets, broader tax relief coverage, direct aid payments, electricity subsidies, and public transportation incentives.
Specifically, individual tax relief has been raised from RM9,000 to RM12,000, marking the first adjustment since 2010. Tax rates for taxable income between RM70,001 and RM100,000 have been lowered to 18%, while income from RM100,001 to RM150,000 is taxed at 24%. Expanded reliefs now include postnatal care, caregiving expenses for parents and grandparents, sports shoes, children’s tuition fees, and subscriptions to artificial intelligence services.
Liew further outlined assistance programs such as the Sara Madani cash transfer, which will provide RM100 twice annually—before Hari Raya Aidilfitri and Malaysia’s 70th Merdeka Day celebrations—benefiting up to 13 million Malaysians, including many from the M40.
Electricity subsidy protection will be extended to households consuming up to 800 kilowatt-hours monthly, covering approximately 90% of domestic users. Public transit initiatives include the continuation of the My50 monthly pass for 300,000 Klang Valley bus and rail commuters and the introduction of the MyKomuter50 pass for 40,000 KTM Komuter users.
Additional allocations include RM750 million for the Jualan Rahmah Madani and Jualan Agro Madani sales programs, with some 35,000 planned sales events. The Bantuan Awal Persekolahan school aid will increase from RM150 to RM200 per pupil to further support household expenses.