FOMCA: HIGHER DISPOSABLE INCOME TO SPUR ECONOMY
Having extra money will address cost of living issue, ease burden, says president
TASNIM LOKMAN KUALA LUMPUR news@nst.com.my
THE 2018 Budget will spur economic growth by increasing people’s purchasing power. Federation of Malaysian Consumers Associations (Fomca) president Datuk N. Marimuthu said incentives in the budget allowed many Malaysians to have more disposable income.
This, he said, would address the cost of living issue.
“Those in tax relief groups and those receiving incentives will have extra money.
“This will ease their burden.
“It will help the economy grow because when the people have money, they will spend it in certain economic areas and sectors,” he told the New Straits Times.
Marimuthu, however, advised those benefiting from the incentives to save money. farmers’ yield.”
The couple lauded the increase in 1Malaysia People’s Aid (BR1M), from RM1,050 this year to RM1,200 annually.
“With the incentive and BR1M, I can better manage the increasing cost of living. I thank the government for helping us improve our livelihood. There is hope for my children,” Zuraidah said.
In George Town, technician Tan Lai Guan, 47, described the two per cent income tax relief as a cost-saving opportunity.
He said his household’s income was less than RM5,000 and barely
He said the cost of living was defined by three elements — transportation, shelter and food — and whether these were affordable to consumers.
He commended the government’s move to build affordable homes and expand the reach of public transport.
“The government needs to ensure the three elements are affordable, then the incentives will be of great help.”
Among those who will be receiving incentives next year are padi farmers (RM200 monthly assistance for three months while enough to make ends meet.
“I have a wife and two schoolgoing children, aged 8 and 14. The income tax relief is great news. I can save the extra money for rainy days.
“I’ve always wanted to do something extra for my family, but have not been able to due to financial constraints,” he said at his home in Air Itam.
He said the move to zero-rate the Goods and Services Tax for reading materials, such as comics and magazines, would allow him to buy more books for his children.
Social media was abuzz with waiting for the harvesting season), pensioners in the lowest rate category (increased to RM1,000 monthly) and civil servants (a RM1,500 special payment).
Malaysians seeking to hire foreign domestic helpers will also have more disposable income as they can now hire maids directly from nine countries without going through agents.
Prime Minister Datuk Seri Najib Razak said the government was aware of the high cost incurred by households in hiring helpers, in some cases costing RM12,000 to RM18,000.
As a result, he said, the government would review the cost of hiring foreign helpers, with a view of reducing the cost in future. praise for the socio-economic thrusts outlined in the budget.
Twitter user @sharmineishak was overjoyed by the abolishment of several toll plazas in Selangor.
“Toll collection to be abolished at Batu Tiga, Shah Alam (among other locations) from Jan 1, 2018. Yay, no more traffic jam. #Bajet2018.”
Twitter user @MohamadArib, said the budget was “the best budget for (the) rakyat. It is a budget that could help the development of the country. Thanks to PM & BN!”