I found this guy in a bag of junk at an estate sale today.
With the help of the Vintage Monster Toys Facebook group, I was able to identify him as a "Funny Fringe" character named "Twinge".
Funny Fringes were manufactured by Australian company Rosenhain & Lipmann (R&L) for inserts into Kelloggs Froot Loops cereal around 1970.
R&L were prolific producers of cereal insert premiums for Kellogg's from the 1960's through the 1980's. For a full list of their premiums, see here.