PETALING JAYA: Malaysia’s middle-income earners (M40) say Budget 2026 offers limited relief as they continue to be squeezed by rising living costs, stagnant wages and shrinking disposable income, trapped between aid for the poor and the privileges of the rich.
While some welcomed targeted measures such as Budi95 and tax breaks, many said the focus remains heavily on the B40, leaving middle-income families struggling to keep up.
Tina Abdullah, 50, a logistics manager, said while a few initiatives were helpful, many M40 households fall just outside the eligibility bracket for most assistance schemes.
“Some are suitable, but some are not. Apart from the Sumbangan Asas Rahmah and Budi95 programmes, many M40 families are no longer eligible for other forms of subsidies or cash aid.
“It is somewhat unfair because some people end up paying more than usual. Under Budi95, for instance, those who use more than the subsidised limit have to pay RM2.60 per litre for the rest.”
She said the government’s focus on the lower-income group was understandable but left others behind.
“The B40 need help, yes, but middle-income families also face financial pressures and do not see much direct benefit from the Budget.”
Nuraida Mohd Ramlee, 42, a mother of three, said the strain on working parents is worsening.
“Some parts are okay, such as tax relief for child education and the continuation of Budi95, but overall, it is still not enough for the M40.
With three kids, childcare, groceries and school fees take up a huge part of our income. We are not poor enough to get aid, but not rich enough to cope easily.”
She said even modest support could go a long way.
“Even small help with childcare, housing or daily costs would make things a bit easier for working parents.
“The gap between the B40 and lower M40 is narrowing. Many of us are struggling in cities, especially those with young children. The focus should be more balanced.”
Desmond (not his real name), 30, a site engineer, said while targeted relief is welcome, structural issues remain unresolved.
“Honestly, it feels quite unfair at times. We do not earn enough to feel secure but we also do not qualify for most forms of aid.
“Prices for groceries, rent and transport keep rising, so many of us feel left out.”
He urged the government to consider practical support mechanisms instead of
blanket rebates.
“I would propose flexible tax deductions or rebates tied to essential spending such as education, healthcare and transport, not handouts but practical relief that acknowledges the squeeze we are feeling.”
He said many others in his income bracket have seen no improvement in financial stability compared with last year.
“Everything costs more, but our pay has not changed.
“While Budget 2026 helps lower-income groups, its impact on middle-income families is limited. It feels like we are quietly slipping through the cracks.”
