Economy Minister Rafizi Ramli said that proposals relating to the definition and classification of the T15 income group are being refined and will be decided by the Government Cabinet soon.
He added that several proposals are being discussed and if the T15 concept and classification are agreed upon by the government, then the classification will be used for the provision of government assistance and subsidies.
The approach shifts from the gross income used previously, namely B40, M40 and T20, to the net disposable income method to ensure more inclusive and equitable measurement and targeting.
He said this in response to Senator Baharuddin Ahmad who asked for the government’s details regarding the T15 group which will see the withdrawal of fuel, education and health subsidies as announced by Prime Minister Datuk Seri Anwar Ibrahim in the 2025 Budget presentation.
Rafizi said that the definition and classification mechanism of the T15 group based on net disposable income can be prepared using information in the Padu system by taking into account an element called Reasonable Living Expenses (PAKW).
Apart from that, Rafizi said PAKW can also explain the cost of living in different areas between states, be an indicator in socio-economic planning and development, determine fairer wages and help individuals and families plan household expenses and financial management.
He hoped that through better household financial information, the government could expand to other implementations including hajj subsidies which could use data and a fairer classification of citizens.
