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Income loss? Apply for aid review any day, says Deputy Finance Minister

Malaysians in the M40 group who have fallen on hard times can immediately apply to reassess their eligibility for government aid, as Putrajaya sets its sights on expanding the middle class beyond the B40 majority

12:19 PM MYT

 

KUALA LUMPUR – Middle-income (M40) earners hit by job losses or sudden financial setbacks do not have to wait to seek government support, as the appeals mechanism for targeted assistance is open daily based on current financial realities rather than historical tax records.

Deputy Finance Minister Liew Chin Tong assured the Dewan Rakyat today that the government’s aid infrastructure accommodates real-time financial changes, ensuring safety nets remain accessible when middle-class households slide into distress.

“Appeals are open every day, including for those who have become unemployed. Anyone whose financial circumstances have changed can submit an appeal,” Liew said during Question Time.

He was responding to a supplementary question from Datuk Adnan Abu Hassan (BN-Kuala Pilah), who pressed the ministry on how M40 households crippled by sudden income reductions could re-establish eligibility for targeted federal aid.

Liew underscored that Putrajaya’s broader economic policy is focused on restructuring the nation’s socioeconomic landscape to lift the middle class into a decisive majority over the bottom 40 per cent (B40) demographic.

“One of our country’s challenges is that the middle-income group is smaller than the lower-income group. Our aspiration is to build a middle class that is larger than the B40 group,” he said.

Acknowledging the persistent squeeze on squeezed middle-income budgets, Liew highlighted key relief measures under Budget 2027 designed to cushion cost-of-living pressures.

Among the cornerstone initiatives is the long-overdue revision of individual income tax relief—raised from RM9,000 to RM12,000—marking the first increase of its kind since 2010.

Furthermore, medical tax reliefs have been widened to incorporate postnatal care services, while education-related exemptions have been broadened to encompass all academic disciplines alongside children’s tuition expenses. – October 19, 2026

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