SHAH ALAM - The middle-income group (M40) is facing economic challenges as they compete with the low-income group (B40) for government-provided facilities.
Universiti Sains Islam Malaysia Faculty of Economics senior lecturer, Dr Mohd Faisol Ibrahim clarified that this group existed between the B40 and the high-income group (T20).
"Although the classification of groups in Malaysia into B40, M40, and T20 was merely a tool for measuring the economy and formulating policies, the presence of the M40 group often received less attention.
"This middle group had to sacrifice between the range of facilities provided for the B40 and those not extended to the T20," he told Sinar when contacted.
According to Faisol, the income bracket for M40, ranging from RM5,000 to RM11,000, placed pressure on this group.
He described that when considering the detailed basic expenses of the M40, they could often be categorised within the B40 group.
"M40 individuals could be classified as low-income earners when living in urban areas or states with a high cost of living, as the B40 was usually prioritised in any assistance.
"This situation forced them to use their existing income to obtain services from private entities, which charged high fees," he said.
For example, in terms of preschool and kindergarten facilities, Faisol stated that many M40 individuals did not have the opportunity to send their children to these centres.
"The reality was that some of their income lay just above the threshold between M40 and B40," he said.