PETALING JAYA: The M40 and T20 groups are disappointed at being “left out” of Budget 2025 incentives, says the Federation of Malaysian Consumers Associations (Fomca).
Its chief executive officer Saravanan Thambirajah (pic) said many M40 families have been struggling and feeling the strain due to stagnant incomes and increased financial obligations.
“While the tax exemption for first-time home purchases might provide some relief, the amount is relatively small.
“This is because most housing units in urban areas already exceed the RM750,000 price range,” he said when contacted.
Saravanan was commenting on the announcement of up to RM7,000 tax relief for first-time home buyers who purchase residential properties priced below RM500,000, and up to RM5,000 relief for properties priced between RM500,000 and RM750,000.
He said the M40 had hoped for more support from the government in Budget 2025.
“For example, higher tax relief for home loans, downpayment subsidies or reduced stamp duties for homes priced above RM750,000,” he said, proposing a more inclusive approach to tax relief thresholds and housing assistance for the M40.
For the long term, Saravanan suggested rent-to-own schemes to encourage home ownership and urged the government to continually monitor the cost of living for middle-income earners.
Contractor Frankie Foo, 33, said he had hoped for an increase in the RM9,000 individual tax relief to RM12,000 due to the rising cost of living.
“As expenses continue to rise, this adjustment will offer more cash in hand,” he said, adding that this would particularly help the B40 and M40 groups amid inflationary pressures.
Foo said relief for unmarried individuals should be increased, adding that economic concerns were a major factor deterring many from settling down.
Financial planner Cecillia Han, 42, praised the proposed exemption for dividend income from government funds such as EPF, unit trusts under Permodalan Nasional Bhd and foreign dividend incomes.
“This will encourage high-income earners to save for their retirement, which is crucial as Malaysia is becoming an ageing nation,” she said.
Han said increasing the personal income tax relief was also good, suggesting that it begin at RM12,000 in the next federal budget and gradually increase.
Lamenting the impact of the high cost of living and the move to rationalise subsidies and impose more taxes, she said greater support should be extended to those in the middle-income bracket.
