PETALING JAYA: Middle-income Malaysians are hoping for more tax relief and for subsidies to be maintained for certain essentials in Budget 2025, which will be tabled today.

They said Budget 2025 should not be merely about taxing the rich and aiding the poor but about making things affordable.

Media practitioner Adrian Lai said the middle class is often squeezed the hardest in terms of paying taxes.

“When subsidies are reduced or taken away, it hits our wallets too. I think measures such as more tax reliefs and subsidies would help us (deal) with housing, education and healthcare expenses that will make a significant difference in our everyday lives,” the 36-year-old said.

Economists had expected that Budget 2025 would introduce further subsidy cuts and new taxes.

The move, they said, would strengthen the country’s fiscal position amid expectations of falling government revenue.

Lai said if more subsidies are taken away, everyday expenses like fuel, groceries and even electricity could go up in price.

“It might not seem like much at first but these costs can quickly add up and stretch our budget, especially when salaries are not increasing at the same pace.”

A private sector employee, Laili Ismail, 36, said it is already tough living in urban areas with the high cost of living, which greatly affects the middle-income group.

She said targeted financial assistance like tax relief, housing schemes and loan subsidies as well as efforts to improve financial literacy can make a huge difference in people’s quality of life.

“Over the past decade, I’ve seen living costs rise significantly, especially after the Covid-19 pandemic and in urban areas like Kuala Lumpur.

“For those of us in the middle-income bracket, it has been tough to maintain financial stability when wages aren’t keeping up with inflation,” Laili said.

If the government were to remove subsidies on essential goods, she is worried that the costs would add up significantly.

“It would leave us with less money for savings or emergencies, which is a matter of concern for long-term financial stability,” Laili said.

She also said the government could increase the minimum wage, adding it must be implemented gradually and provide support to businesses that would be most affected.

“With the right approach, we can ensure that a higher minimum wage benefits everyone, without causing undue hardship,” she added.

Entrepreneur M. Ravindran, 38, said any measures by the government to remove subsidies should be done in stages to avoid a significant increase in the prices of goods and services.

“There should be a soft landing and not done all at once. We need to adjust our finances too.”

He said there should be more assistance for middle-income groups as their purchasing power would be affected if prices are increased.

“This will help them spend more instead of being forced to choose which goods or services to spend on,” Ravindran added.

Prime Minister Datuk Seri Anwar Ibrahim will table Budget 2025 at 4pm today in Parliament.

https://www.thestar.com.my/news/nation/2024/10/18/high-hopes-for-lower-taxes