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Govt urged to carefully classify household income so that those in need would not be left out of aid and subsidies — Backbenchers Club

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Publish date: Mon, 21 Oct 2024, 09:35 PM

KUALA LUMPUR (Oct 21): The government has been told to re-examine the classification of household income so that those who really need aid and petrol subsidies would not be left out, said the Backbenchers Club on Monday.

Its chairman Datuk Mohd Shahar Abdullah said there is a possibility of the needy missing out and there will be some confusion if the classification is still based on the old income class model.

"I urge the government not to use the approach of classifying household income according to the old model because it will cause those who should receive assistance and petrol subsidies to miss out," he told Bernama in Dewan Rakyat on Monday when asked about the people questioning the definition of the T15 household category that will not receive subsidy benefits next year.

He explained that the people's complaints about the T15 household income classification voiced on all platforms, especially social media, will be given attention through the people's representatives in Parliament.

Elaborating on the implementation method, Mohd Shahar said various sources such as studies made by the Institutes of Higher Learning can also be used as guidelines in addition to looking at the multidimensional poverty index.

"Multidimensional poverty also needs to be taken into account because we can't just base it on salary, as responsibilities also need to be taken into account as no one should be left out of government assistance.

"It is a good intention to give to those who are eligible based on social conditions, but the implementation is what we need to discuss and refine so that those who are eligible to receive subsidies and social assistance are not left out," he said.

He added that equitable economic distribution also needs to be taken into account to bridge the economic gap of Malaysians.

"The current issue is that the economic data is quite beautiful (such as) in terms of inflation, the growth of Gross Domestic Product and the national debt, but in reality the distribution of wealth has been disputed.

"Many studies have shown that subordinate workers receive little compensation compared to the top management group. That is why the Madani Economy wants to improve the economic distribution of all levels with taxes," said Mohd Shahar.

On Sunday, Economy Minister Rafizi Ramli said the classification of the T15 category, which will not receive subsidy benefits next year, as stated in Budget 2025 is being refined to ensure that subsidy targeting is done more fairly.

 

https://www.theedgemarkets.com/node/730971

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