We would argue that the urban middle-income households (M40) are struggling too (maybe even more so) — many are being forced to take up more and more debt just to maintain their lifestyles — and are too often neglected. Is it not time that these middle-income households receive more attention — and a helping hand? After all, this new government is championing inclusiveness. The middle-income class plays a very important role in the future economic growth potential of the country and in advancing democratic idealism. More on this later.
Mention cost of living and we bet everybody has something to say about it, most likely to complain that the price of almost everything is rising at a dizzying speed. The government of Prime Minister Datuk Seri Anwar Ibrahim has made tackling the rising cost of living its immediate priority. Too often though, discussions on lowering living costs, inevitably, centre on helping the lower-income households, the B40. We are not disputing that the poor require help. But as we wrote last week, these households are already receiving substantial cash transfers and aid benefits from various assistance programmes, public and private. Many of their necessities or staples are currently being subsidised or under price control. They likely do not pay any taxes. Additionally, a good percentage of them live in states where the cost of living is lower, compared with that in major urban cities and towns (see Chart 1).
