KUALA LUMPUR – In the heart of Malaysia, middle-class citizens or the M40, have been grappling with the relentless burden saddled upon them by the high cost of living in the country’s urban areas.
As the nation anticipates the upcoming 2024 budget, the M40 seem united in their hope and call for the government to open their eyes to their never-ending financial struggles.
Echoing a plea for compassion and meaningful change, and not just lip service from the government, many hope the budget will provide help that they need in running their lives.
The M40, while not classified as low-income, find themselves increasingly trapped in a financial web.
Their monthly earnings, ranging between RM5,000 and RM12,000, barely suffice to sustain a reasonable quality of life, especially those with larger families.
The Vibes spoke to several individuals from diverse backgrounds and professions as they shed light on their daily battles against financial insecurity.
Beyond cash aid
IT professional Chong Wei Lam resides in the bustling heart of Kuala Lumpur.
He finds his career, which was supposed to be his gateway to financial stability, was nothing like what he expected.
The 32-year-old finds himself trapped in a reality that challenges his dreams of a beautiful life for his family of four.
His voice filled with passion, Chong said: “My monthly income is RM10,000, which, on paper, seems a lot and promising for many.”
However, the truth is that, after paying rent, utilities, and other basic expenses, I barely have enough left to save or invest for the future,” he said.
“The rising cost of living is slowly but surely strangling my family’s budget, leaving us with little financial security.
“We have been cutting down on so-called luxuries such as movies and eating out, as every bit counts.
“I hope some form of change is introduced. We, the M40s, are not looking for cash assistance...what we need from the government is some sort of programme that will eventually help city dwellers lead a sustainable life.”
‘Real challenge’
Siti Fatimah Kassim, a 48-year-old lecturer, once embarked on her teaching career with enthusiasm and a dream of nurturing young minds.
But today, she faces an emotional battle as her income of RM6,000 falls short in a world of escalating expenses.
Her voice tinged with sadness, she expressed her concerns on leading a family life in the notoriously expensive Johor Baru.
“As a lecturer, I am passionate about educating the future generation.
“However, my income of RM6,000 is insufficient to cope with inflation. The prices of essential items like groceries and healthcare keep soaring.
“It’s becoming a real challenge to provide a good life for my family.
I have five children, and even with my husband’s income of about RM7,000, we are barely managing.
“Sure, we get some assistance from the government for kids’ education and healthcare, but is that enough to settle our issues?”
She hoped the 2024 Budget will allocate resources for better and affordable education, including college and university fees.
Moreover, Siti said measures to stabilise prices of essential goods and services would greatly relieve the financial stress on families like hers.
Financial rollercoaster
As a small business owner, Ravindran Kumar knows the highs and lows of entrepreneurship intimately.
Yet, despite his dedication and hard work, the 40-year-old Penangite is confronted with the uncertainty of the future and a financial rollercoaster.
With determination in his eyes, he highlighted his concerns.
“Running a small business is tough in today’s economy. Despite my hard work, my earnings often fluctuate, and the uncertainty of the future is a constant worry.
“The government should provide more support to entrepreneurs like me who are trying to make ends meet.
“People’s buying power seems to have been going down, and this has affected my business slowly over the years.
Many times, I have thought of just closing down my florist business and maybe going back to work in a factory.
“I was a supervisor in an electronics factory before starting my business. I wanted financial freedom but it looks like all such freedom is slowly zapping away.”
For the 2024 budget, Ravindran hopes for initiatives that promote job security and stimulate economic growth, as well as policies that encourage business growth and expansion, especially for small and medium-sized enterprises.
Most importantly, he said any initiatives should actually reach the target group and not just “disappear” along the way.
“This seems to be a ‘Malaysian’ way. Big announcements are made in fanciful events, but in the end it’s always “kosong” for us.”
More scholarships, please
48-year-old Aminah Rashid painted a picture of Malaysians’ resilience against the onslaught of economic hardship.
Bearing the weight of her family’s future on her shoulders with an income of RM7,500, she faces daily struggles but remains determined to provide for her three children.
Her voice filled with resilience, the single mother from Kota Damansara said: “Being a single mother, I have to juggle my job and take care of my children. It's a daily struggle to provide for my family.”
“Even with my income as a human resources manager, it’s tough to ensure a decent life for my kids, and I worry about their future.
Education is vital, especially for my college-bound children. The rising costs of higher education are a constant concern, and I often have to sacrifice my own needs to fund their dreams.
“Life is not cheap in the cities. Children also have a lot of expectations now, and everything needs money now.
“When I say no to them, I feel so lousy, as though I am being stingy. But this is what I need to sacrifice if we are to survive here.”
Aminah expressed her expectations, saying she hoped to see substantial allocations for scholarships and financial aid for college-going students, as well as initiatives that ease the financial burden on single-parent households like hers.
“We the M40 seem to be a forgotten lot. Many think we have big salaries, so we live comfortably. Nothing can be further than the truth.”
Flexible work, affordable housing
Although the government's current initiatives primarily target the B40 group, middle-income earners need more help in improving their financial situations, especially in urban areas.
While the Madani economy framework seeks to address this through the progressive wage policies, there is not much that is now in place to help them.
Among the suggestions that have been floated to ease their burden is that the 2024 budget should push for flexible working arrangements.
This will allow for second incomes and it will go a long way in alleviating their situations.
The private sector should get better incentives to encourage flexible working arrangements such as working from home and freelance jobs.
Many may be able to venture into gig economy jobs and small businesses to help people supplement their incomes.
The government should also invest more in affordable housing projects to ensure that urban residents have access to decent, affordable homes.
These programmes should prioritise middle-income earners, helping them secure stable housing without the burden of high mortgage payments or rent.
Healthcare accessibility
There is also an urgent need for better healthcare accessibility by implementing policies that make healthcare more affordable, especially in private hospitals.
For the time being, the 2024 budget can include measures like expanding public healthcare services such as government clinics that operate until night.
A visit to such clinics showed that many patients are indeed from the M40 group, as they are unable to afford the cost of private clinics.
The government should also look at providing more subsidies for essential medications, and introducing health insurance schemes that also cater to middle-income earners.
On education support, there is always the need to increase funding for scholarships, grants, and financial aid programs to assist middle-class families.
Many scholarships are now tailored only to B40 children and this places M40 kids in a limbo. They are unable to pursue private education yet do not get help to do so.
As the nation eagerly awaits the unveiling of the 2024 budget, the voices of the M40 serve as a reminder that addressing the financial struggles of the middle class is crucial for achieving economic stability and prosperity in Malaysia.
The government now faces the monumental challenge of crafting policies that will genuinely alleviate the hardships faced by this vital segment of society, whose passion for a better life remains unwavering.
The M40’s expectations are high, but their dreams are even higher: they seek not just temporary relief but long-term solutions that can secure their financial well-being, ensure quality healthcare, provide accessible education for their children, and offer job security. – The Vibes, October 8, 2023
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