KUALA LUMPUR, Feb 5 — Bagan MP Lim Guan Eng has urged the government to introduce additional tax reliefs and enforce local procurement requirements to ease economic pressures on Malaysia’s struggling middle class and small businesses. Speaking in Parliament today, he warned that rising living costs, economic uncertainty, and global trade tensions are “pushing the M40 group and SMEs to the brink.” Among his proposals is an additional RM10,000 tax relief for SMEs and RM5,000 for individual taxpayers, which he says will help ease financial burdens and stimulate growth.
“We need to ensure that economic gains are shared fairly, not just concentrated among the few,” he said while debating the King’s speech in the Dewan Rakyat, pointing out that while Malaysia’s foreign investments and GDP figures may look strong, many middle-class families are struggling with housing, healthcare, and education costs. “A combination of competition from countries selling below market prices, product dumping, technological advancements, the restructuring of traditional and digital markets, and shifting trade patterns has widened the wealth gap and put increasing pressure on the middle class. “The threat of renewed US tariffs under Donald Trump’s presidency will further strain Malaysia’s economy, exacerbating the two-tier economic divide.
” Lim highlighted Malaysia’s two-tier economy, where high-performing industries benefit from government incentives while traditional sector.