
Fomca calls for major policy shift
Fomca chief operating officer Nur Asyikin Aminuddin said while public aid and subsidies are typically directed at the B40 group, the M40 – those earning between RM5,000 and RM10,000 monthly – are increasingly caught in a financial bind. The middle class is battling inflation, rising living costs and fading financial safety nets.
'They're too 'rich' for aid but not rich enough to withstand economic shocks. Their commitments – housing loans, education, insurance and care for ageing parents aren't factored into current income-based assessments. They're trapped in survival mode.'
Nur Asyikin said Fomca has received more complaints from M40 households, especially since the Sales and Service Tax (SST) was raised to 8%.
She said it has driven up service costs in logistics, repairs and professional fees – putting further pressure on household budgets.
'M40 families are facing higher prices on essentials like food, transport and utilities. Maintaining a decent standard of living in urban areas is increasingly difficult.'
One alarming trend, she noted, is the rising number of families surrendering or letting health insurance policies lapse.
'Premiums have become unaffordable as basic needs take precedence. Any emergency – illness, retrenchment – leads to cost-cutting and insurance is often the first to go. With private healthcare costs rising, insurance is no longer a luxury but a necessity. Yet, many are underinsured or uninsured, forced to rely entirely on the overstretched public system.'
Childcare and housing, she added, are critical pressure points.
'In urban areas, early education and daycare can consume 30% to 40% of household income. Some parents cut working hours or rely on unregulated caregivers, affecting both income and child development.'
As for housing, many so-called 'affordable' homes fall short, said Nur Asyikin.
'People think they're buying stability, but end up in buildings with broken lifts or overcrowding. Home ownership should come with dignity and safety, not just a roof.'
Fomca is calling for a major policy shift – away from rigid income categories like B40, M40 and T20 – to a more nuanced, needs-based framework.
Specifically, it urges the adoption of the Reasonable Basic Living Expenses (Perbelanjaan Asas Kehidupan Wajar or PAKW) tool, developed by the Statistics Department.
'PAKW calculates household well-being based on actual spending needed for a dignified life, including food, housing, healthcare, transport and childcare, not just income.
'It adjusts for location, family size and life stage, offering a clearer picture of who truly needs support.'
Nur Asyikin said wider PAKW adoption across ministries could make social programmes more effective, especially for urban, middle-income households.
Fomca also recommends breaking down the M40 into lower and upper tiers and publishing regional PAKW data for more localised policymaking.
'There is a growing class of 'invisible poor' within the M40 who don't show up in statistics simply because their income sits just above the cut-off.
'The government must realise that well-being isn't just about surviving, it's about helping families live with dignity.'
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Daily Express
a few seconds ago
- Daily Express
RM5k aid for Tambunan small traders
Published on: Monday, July 28, 2025 Published on: Mon, Jul 28, 2025 By: Gerry Lewis Text Size: Dr Jeffrey presenting aid to recipients. TAMBUNAN: A total of RM275,000 was distributed to 55 licensed small stall traders in Tambunan through a one-off special aid of RM5,000 each. The assistance was presented by Datuk Seri Dr Jeffrey G. Kitingan at the Tambunan District Community Hall. The initiative is part of the 'Bantuan Untukmu' program aimed at easing the operational costs of traders, improving their business infrastructure, and boosting grassroots entrepreneurship. In his speech, Dr Jeffrey expressed pride in the achievements of the Tambunan community, noting that the district has nearly eradicated hardcore poverty. However, he acknowledged that there remain segments of the population living in poverty who require targeted strategic support tailored to current needs. He stressed the importance of continued support and new initiatives to ensure no citizen is left behind in the development process. Dr Jeffrey also reminded the people of Tambunan to stay alert to the various forms of assistance available, not only from the State Government but also from the Federal Government. He emphasized that such aid is not meant to foster dependency but to serve as a stepping stone toward self-reliance and long-term well-being. The federal government, through the Sabah Ministry of Agriculture, Fisheries, and Food Industries (Maffi), has also intensified efforts in rural development with allocations exceeding RM33.59 million for agri-food projects across Sabah. These projects include the rehabilitation of 534.55 hectares of abandoned paddy fields, the construction of 23 agricultural produce collection centres, and the implementation of integrated cash crop and livestock initiatives. These efforts not only generate economic output but also empower the local agricultural sector. He also highlighted the Agropreneur Muda program, which offers opportunities for youth aged 18 to 45 to become agricultural entrepreneurs. The program provides grants, fertilizer assistance, access to productive land, and technical training. He noted that the initiative is particularly relevant for young people in Tambunan who possess idle land with development potential. He advised the RM5,000 aid recipients to use the funds wisely, whether to improve their stall structures, upgrade business equipment, or increase inventory. The assistance is expected to boost their daily income and stimulate the local economy through higher-quality services and products. Furthermore, he encouraged traders to view the aid as a catalyst toward achieving more stable and sustainable income streams. In closing, he congratulated all recipients and expressed hope that their businesses would continue to grow and benefit their families and communities. He also called on the people of Tambunan to continue supporting his leadership as the Tambunan assemblyman, assuring that all assistance distributed is based on accurate data and genuine community needs. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia


New Straits Times
an hour ago
- New Straits Times
Dewan Rakyat to debate SST in construction, foreign-run businesses
KUALA LUMPUR: The government's efforts to ensure ongoing construction projects remain unaffected by the Sales and Services Tax (SST), along with the policy allowing foreign nationals to operate businesses in Malaysia, are among the key issues highlighted in today's Dewan Rakyat sitting. According to the Order Paper published on the official Parliament website, Yusuf Abd Wahab (GPS–Tanjong Manis) is set to question the Works Minister on the categories of construction projects exempted from the SST. He is also seeking clarification on the measures the ministry is taking to ensure that ongoing construction projects remain unaffected by the tax. Yusuf is further expected to ask whether the Madani government will consider introducing a grace period before fully implementing SST in the construction sector. Meanwhile, Mohd Hasnizan Harun (PN–Hulu Selangor) will raise a question to the Minister of Housing and Local Government regarding the current policy that allows foreign nationals to operate businesses in Malaysia, particularly in the retail sector. He is also requesting clarification on enforcement action taken against premises registered under Malaysian citizens' names — but which are fully operated by foreign nationals — including cases involving the use of a citizen wife's name to register the business. Also drawing attention today is a question on the abuse of stray animals, posed by Wong Chen (PH–Subang) to the Minister of Agriculture and Food Security. Wong seeks to know whether the ministry intends to introduce a comprehensive national framework to address the abuse of stray animals. He is also asking whether the ministry will collaborate with non-governmental organisations (NGOs), local authorities, and animal welfare experts to implement an integrated and holistic approach. Following the Q&A session, the Dewan Rakyat is scheduled to proceed with the tabling of two bills for first reading: the Cross-Border Insolvency Bill 2025 and the Education (Amendment) Bill 2025. The sitting will then continue with the second reading of three bills: the Fees (Pengkalan Kubor Ferry) (Validation) Bill 2025, the Poisons (Amendment) Bill 2025, and the Offenders Compulsory Attendance (Amendment) Bill 2025. The Second Meeting of the Fourth Session of the 15th Parliament is scheduled to run for 24 days, concluding on Aug 28. - BERNAMA


The Star
2 hours ago
- The Star
SST in construction industry among Dewan Rakyat's focus today
KUALA LUMPUR: The government's move to ensure ongoing construction projects are not affected by the Sales and Services Tax (SST) is among the highlights of the Dewan Rakyat sitting on Monday (July 28). According to the Order Paper on the official Parliament website, Yusuf Abd Wahab (GPS-Tanjong Manis) has asked the Works Minister to state the categories of construction projects exempted from SST and what measures the ministry is taking to ensure the tax does not impact ongoing construction projects. He also wanted to know whether the Madani government would consider granting a grace period before imposing the SST on the construction sector. At the same session, Mohd Hasnizan Harun (PN-Hulu Selangor) will ask the Minister of Housing and Local Government about the current policy on the freedom of foreign nationals to operate businesses in Malaysia, especially in the retail sector. He has also requested clarification on the action taken against premises registered under a citizen's name but fully operated by foreign nationals, including cases involving the use of a wife's name who is a citizen. Also to draw attention is a question on the abuse of stray animals, raised by Wong Chen (PH-Subang) to the Minister of Agriculture and Food Security. Wong wishes to know whether the ministry will introduce a comprehensive national framework to address stray animal abuse and whether it will collaborate with non-governmental organisations, local authorities and animal welfare experts to implement an integrated and holistic approach. Following the Q&A session, the Dewan Rakyat sitting is scheduled to proceed with the tabling of two bills for first reading, namely the Cross-Border Insolvency Bill 2025 and the Education (Amendment) Bill 2025. The sitting then continues with the second reading of the Fees (Pengkalan Kubor Ferry) (Validation) Bill 2025, the Poisons (Amendment) Bill 2025 and the Offenders Compulsory Attendance (Amendment) Bill 2025. The Second Meeting of the Fourth Session of the 15th Parliament will be held for 24 days until Aug 28. - Bernama