KUCHING: Lower middle-income households may remain vulnerable even as Sarawak rolls out wider cost-of-living relief.
Universiti Malaysia Sarawak (UNIMAS) Faculty of Economics and Business’ senior lecturer, Dr Afiza Abu Bakar, said the RM876.2 million package was welcome news for Sarawakians as households continued to face rising living costs driven by global uncertainties.
She said the measures, comprising the SKAS enhancement of RM680 million, a 25 per cent electricity bill discount worth RM188.1 million, and 50 per cent rental discounts for markets, stalls and selected business premises amounting to RM8.1 million, directly eased financial pressure on households and small businesses.
“Beyond the immediate relief, she said the government’s longer-term approach under the reduction in diesel consumption policy also strengthened economic resilience.
“This included rural electrification via solar energy under the Sarawak Alternative Rural Electrification Scheme (SARES), the replacement of ferry services with toll-free bridges, and the reinvestment of diesel savings into rakyat-focused initiatives,” she told Sarawak Tribune.
On whether the package was sufficient to protect lower and middle-income households, she said the measures were timely and brought relief to many families facing higher daily expenses.
She said the increase in SKAS assistance and the electricity discount might appear small individually, but together it provided meaningful support that helped families better manage their monthly budgets.
“For many households, even a reduction in utility bills could free up funds for groceries, school expenses or transport.”
At the same time, she described the package as an important short-term cushion in the face of global uncertainties that were beyond local control.
Still, she said rising costs of food, transport and other essentials continued to affect households, and no single measure could fully offset these pressures.
She added that middle-income households, in particular, still faced the challenge of managing multiple commitments at once, from housing loans to children’s education.
“Overall, the package might not solve every challenge, but it represented a strong response that helped reduce immediate financial strain.
“The combination of direct assistance and cost-saving measures created a buffer that allowed families to better cope with current conditions.”
On the groups still most exposed, Afiza said lower middle-income households remained vulnerable because they might not qualify for higher levels of assistance despite carrying significant financial commitments such as housing, education and transportation.
She added that workers in informal sectors or gig economy jobs could also remain under pressure because of unstable income flows.
She said small traders and micro-business operators not directly benefiting from rental discounts might still face rising supply and logistics costs.
“Rural households, particularly those dependent on purchased food, could also continue to feel the effects of higher transportation and distribution costs.
These conditions showed that while broad-based support was important, some groups required more targeted attention, she said, adding that identifying and supporting the more vulnerable would be important to ensure no one was left behind.
If price pressures persisted, Afiza said the next response should strike a balance between direct household support and broader measures to address the cost of doing business.
She said direct assistance such as SKAS played a crucial role in helping families cope with rising expenses in the short term by ensuring daily needs could still be met despite higher prices.
“However, focusing only on direct aid would not be sufficient if the underlying causes of rising prices were not addressed. Businesses were also facing higher transportation, raw material and operating costs, which were eventually passed on to consumers.”
In the longer term, she said a stronger emphasis on reducing business costs would benefit both businesses and households, as greater efficiency could be passed down through more stable prices.
“A balanced approach combining immediate support with structural improvements would therefore be more effective in protecting the well-being of the rakyat in a more consistent and lasting way.
“While government assistance was available, households should also remain mindful of their own financial management.
“Ongoing geopolitical developments could continue to affect prices in ways that were difficult to predict, both in duration and severity.”
