THE Ministry of Finance (MOF) has announced a raft of targeted fiscal measures to support the country’s middle-income group (M40), as part of its broader commitment to social protection under the MADANI Economic Framework.
The initiatives aim to address mounting cost-of-living pressures, with particular focus on housing, education and healthcare.
In a written parliamentary reply to Senator Datuk Prof Emeritus Dr Mohammad Redzuan Othman during the Dewan Negara sitting on Tuesday, Finance Minister II Datuk Seri Amir Hamzah Azizan reaffirmed the government’s dual focus on inclusive support and fiscal responsibility.
“The government remains committed to ensuring that no citizen is left behind amid rising living costs,” he said.
“A suite of comprehensive aid measures is being implemented to support households, especially those in the M40 group, who are also key contributors to national tax revenue.”
A core feature of the announcement is the expanded allocation for the Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA) programmes, now increased to RM15 billion from RM10 billion the previous year.
This includes a one-off RM2 billion SARA Appreciation credit announced by the Prime Minister on 23 July 2025. Amir told the Upper House.
An additional RM1 billion has been set aside to tackle wider cost-of-living issues, with RM600 million allocated under the Payung RAHMAH programme to subsidise essentials such as rice and cooking oil. The nationwide RAHMAH Sales campaign will also be extended to all state assembly constituencies to improve access to affordable goods.
Subsidies will continue through the Cooking Oil Stabilisation Scheme (COSS), as well as targeted assistance for diesel and electricity.
Cash transfers under the BUDI MADANI programme will also remain in place.
Amir said MOF affirmed that most Malaysians would still benefit from subsidised fuel, despite the gradual rationalisation of RON95 subsidies.
In terms of non-cash assistance, RM791 million will go towards the 2025 Early Schooling Aid Programme (BAP), supporting families across all income brackets in preparing children for the school year. The My50 public transport pass will also remain available to ease commuting costs.
“M40 households will see additional tax relief, including deductions for child-related expenses, medical costs, lifestyle spending, EPF and PERKESO contributions, and childcare fees.
“Under Budget 2025, new mortgage interest relief was introduced, offering up to RM7,000 for first-time buyers of homes priced below RM500,000, and RM5,000 for those purchasing properties between RM500,000 and RM750,000,” the Minster said.
He also highlighted structural reforms aimed at increasing household disposable income. These include the revised minimum wage, the Progressive Wage Policy, and the soon-to-be-implemented Public Service Remuneration System (SSPA).
Amir added that the government’s long-term development objectives would be driven by the 13th Malaysia Plan (RMK13), which underpins a vision of inclusive, balanced and sustainable national growth. - Sept 2, 2025
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