According to official statistics, inequality in Malaysia worsened between 2016 and 2019, and the B40 community, in particular, has been the hardest hit.

The pandemic in 2020 and last year has only served to exacerbate the situation for this group. As a result, they have had to spend a bigger percentage of their already limited earnings on basic necessities, making them even more vulnerable.

The following is a list of items most needed by the B40 group, generally classified as households with an income of under RM4,800 a month. The information is compiled using data from the Depart of Statistic Malaysia’s Household Income and Expenditure Survey 2019.

1. Housing and amenities

Housing, water, electricity, gas, and other fuels make up the top expense borne by B40 households, on which they fork out RM610 per month or about 26.1% of total spending.

Housing is an especially pertinent issue as most B40 households rent property. Even if they owned their own homes, interest payments are likely to be very high in relation to their income.

Regardless of their ownership status, they would still need basic utilities such as water, electricity, and gas. Unfortunately, with prices rising worldwide, these costs are only going to get higher.

2. Food away from home

You might wonder why B40 households are spending money on eating out when they should be cooking at home to save money. Unfortunately, it isn’t always enough for one parent to work and support the family.

With both parents out of the house, it is unlikely they have time to cook. Some might even work multiple jobs to make ends meet.

As such, expenses on food eaten away from home amount to RM246 a month on average, or about 10% of total spending.

3. Transport

For the B40 community, transportation is crucial as it allows them to travel for work. Transport costs amount to RM242 a month or 10.3% of total spending.

As most of this group live farther away from urban areas that have more job opportunities, they need to channel a significant portion of their income to commuting. Fortunately, the My50 programme by RapidKL has helped to lower travel costs.

Still, given today’s high oil and gas prices, transport is expected to become even pricier for those who have to use a car or motorcycle to get to work.

4. Fish and seafood

When it comes to food, B40 households actually spend the most on fish and seafood items, amounting to about RM125 per month or 5.3% of total spending.

With increased prices of chicken and beef due to higher feed and fertiliser costs, not to mention supply issues, fish has become important as an alternative source of protein.

5. Rice, bread and other cereals

These staple foods are an affordable source of carbohydrates for B40 families, costing them RM109 a month or about 4.7% of total spending.

Rice continues to be the main food item holding up families in Malaysia, as it is heavily subsidised and supported by the government. Bread prices are a bit more volatile as they ultimately depend on wheat prices, which have been affected by the Russia-Ukraine conflict.

6. Fruits and veg

B40 households spend about RM107 a month on vegetables and fruits, or 4.6% of total spending.

Apart from being an important source of nutrients, vegetables are widely available and can even be planted at home, allowing families to lower their costs and potentially even earn money by selling produce.

7. Communications

Spending on mobile and internet services is becoming more and more of a basic necessity, especially for the B40 group, allowing them to upskill themselves through remote courses and find jobs that are posted online.

Spending on communications comes to about RM100 per month, or 4.3% of total spending. Most B40 households probably take up the lowest internet speed, which costs RM89 per month on average, and use prepaid mobile plans.

How to help

If you belong to an M40 or T20 household and would like to give back to society, consider helping those in the B40 group. You could directly help households in need, or work with the following organisations to give aid to where it is needed the most:

• Housing: Epic Homes, Happy Family Homes Malaysia
• Food: Lost Food Project, Yayasan Food Bank Malaysia
• Others: Yayasan Chow Kit, United Nations

This article was written by Su-Wei Ho for MyPF. To simplify and grow your personal finances, follow MyPF on Facebook and Instagram.