Government urged to review income groups

by | Jun 6, 2023 | NATIONAL, NEWS | 0 comments

Next year onwards a new approach using household net disposable income metrics would be implemented as an economic structuring measure for a more focused and appropriate distribution of targeted subsidies.

This move by the government has been well received by economic experts who say that many Malaysians are affected by the economic instability and about 70 percent of households are potentially earning below the decent living wage.

Several years ago it was Bank Negara Malaysia who introduced the concept of “living wage” which is the minimum income needed for a household to participate in society, personal and family development while being free from severe financial stress.

The government’s move to review the income classification is timely but the authorities must expedite the data gathering of household income in order to come up with a better socioeconomic classification system.

Economic experts contend that this is important and vital as it would help address the welfare issues faced by needy groups. Currently, the Malaysian population is classified into three groups which are B40, M40 and T20.

The government’s formation of PADU or Pangkalan Data Utama which is an integrated database is also seen as a timely move by experts for welfare protection and support at an individual level and so there should be no more delays in assisting the needy.