Malaysia

Subsidies won’t be based on household income alone: Rafizi

Other factors include expense pattern, family size, location

Updated 3 years ago · Published on 14 Feb 2023 2:32PM

Subsidies won’t be based on household income alone: Rafizi
Economy Minister Rafizi Ramli says that the government will consider other factors besides an individual’s income level in its subsidy distribution plan. – Malaysian Information Department pic, February 14, 2023

by Qistina Nadia Dzulqarnain

KUALA LUMPUR – Putrajaya has plans to distribute subsidies based on factors outside of an individual’s income level, said Economy Minister Rafizi Ramli (Pandan-PH). 

The government will look at other factors such as a household’s expenditure and income structure, cost of living, purchasing power as well as its demography and location, he told the Dewan Rakyat today.

“Moving forward, the government intends to move on from the blanket subsidies implemented now based (only) on household income, to a more targeted approach that considers the disposable income of a family matched with the cost of living in specific localities. 

“Regardless of their income, a household will be given assistance to live a reasonable life based on information regarding not only their income but also their family size and location,” he said during the Minister’s Question Time today. 

His ministry is working with the Statistics Department to produce an updated survey on the income groups in Malaysia, Rafizi said, adding that the compiled data will aid the government in carrying out its goals for citizen welfare. 

“Instead of handing out assistance based only on whether households are from the B40, M40 or T20 (income group), the new approach will use an index that considers household data and current economic burdens. 

“The process is being arranged. Once we have consolidated all the data, it will be easier for the government to ensure that aid reaches those in need while identifying households that are exposed to certain conditions. 

“We will hasten (the revised aid distribution approach) and are looking at an implementation period,” he said. 

Besides that, he said that the government is open to considering providing incentives to employers to encourage affording workers who are also carers in their families flexibility in their work schedule. 

“We want to make sure that our work sector is more open to accepting employees who are in charge of caring for their families, which can either be a full-time or occasional task. 

“Employers should be more open so that these workers’ productivity is not impacted and they continue contributing to the economy,” he said, adding that the social security net for full-time carers will also be reformed to a more comprehensive one. – The Vibes, February 14, 2023 

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