Malaysia’s Middleclass Losers The middleclass is under stress By Murray Hunter

Murray Hunter : Malaysia’s middleclass is being financially squeezed. The middle class is categorized as the M40 group (middle 40% of income earners, roughly RM4,850–RM10,960 per month).

This group is facing financial pressure in 2025 due to a combination of economic reforms. While Malaysians are being told they are better off financially, their feelings are contrary. Rising costs, policies and structural challenges are diminishing middleclass spending ability and turning them into financial slaves of society, locked into this by their work and lifestyles they have grown accustomed to after so many decades of growing national prosperity.

Targeted Subsidy Reforms have put many within the middleclass out of range of subsidies their livelihoods were based upon. The government has shifted from blanket subsidies to targeted ones, particularly for fuel (e.g., RON95 petrol subsidies phased out for the T15 group, earning above RM13,000/month) and electricity. Middle-class households, especially those in urban areas like Kuala Lumpur, often fall just outside subsidy eligibility, facing higher costs for essentials. For instance, the removal of petrol subsidies could add RM1,000–RM2,000 monthly to household expenses for some families.

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