The M40 have very different needs, say experts

PETALING JAYA: Consumer groups state that critical areas must be addressed in order to empower the middle-income group or M40 in the upcoming 2024 Budget. Consumers Association of Penang (CAP) president Mohideen Abdul Kader emphasizes that the M40 group should not be treated as a homogeneous category. He explains that the M40 group comprises individuals at various income levels, from well-off to marginal, and as such, targeted assistance is necessary. Mohideen also emphasizes that geographical area and family size must be taken into consideration while providing assistance. He gives the example that M40 individuals living in Kuala Lumpur have different needs compared to those living in Arau, Perlis.

Mohideen stresses the need for the government to provide more affordable homes, especially in big cities where the prices of houses are beyond the reach of the M40 group. He suggests that the government can achieve this by offering affordable loans and regulating house prices. He also highlights the importance of quality education for M40 children, advocating for at least tertiary education opportunities. Additionally, he recommends introducing targeted subsidies and cash transfers for the M40 group. Mohideen proposes building an income database based on family size to calculate the needs of an average family and suggests providing monthly cash transfers to families with inadequate income.

Datuk Dr Paul Selvaraj, the secretary-general of Federation of Malaysian Consumers Associations (Fomca), points out that the M40 group faces difficulties in meeting their basic needs. He emphasizes the need to focus on national food security and affordability, given Malaysia’s dependence on imported food items. Selvaraj highlights that the cost of living continues to rise while salaries remain stagnant. He also stresses the need for improvements in the healthcare system to relieve the financial burden on the M40 group, particularly concerning high medical costs at private hospitals. Selvaraj suggests that the government should invest in financial educational programs to empower Malaysians and protect them.