Budget 2015: Cost of living and employment are top issues

The rising cost of living and concern over job availability are at the forefront of Malaysian's concerns ahead of the Budget 2015, which is to be tabled tomorrow.

According to poll on Prime Minister Datuk Seri Najib Razak's microsite, the cost of living category received the most votes (over 36,000) as being a top concern, followed by employment, housing and urban life, education and social welfare.

The poll has been gathering votes and recommendations from the public since August, and also highlights feedback on a number of cost of living and employment issues many Malaysians are currently facing.

It's perhaps not a surprise that cost of living and employment are heading locals' worries. An estimated two million families in Malaysia are living on less than RM3,000 (SGD 1,171) per month - with many living on less than that - Datuk Seri Abdul Whid Omar, a Minister in the Prime Minister's Department told The Star.

This is despite average household incomes rising by around 10% in the last five years.

"Although we believe that we are on track, the situation is not comfortable yet," he said.

ALSO READ: Malaysians not financially ready for retirement

In Budget 2014, financial assistance of RM250 was made available to pensioners, while households with a monthly income of less than RM3,000 were entitled to a one-off payment of RM650 under the BR1M scheme. This scheme is set to continue in Budget 2015, although many reports expect the scheme will increase to cover households earning up to RM4,000 per month.

Alongside cash handouts, it's also expected the minimum wage may be raised, which would likely be accompanied by measures to boost productivity across the nation.

READ MORE: 60,000 workers yet to receive minimum wage

A Reuters article also stated Kenanga Research found corporate taxes may be lowered by more than the 1% cut announced for 2016, as the country's tax rates are still higher than its regional peers.

Alliance DBS stated new tax reliefs for households could also be announced to further help Malaysians cope with the rising costs of living.

Image: Shutterstock