Govt studying net disposable income as basis for aid
KUALA LUMPUR: The government is studying the use of net disposable income as a basis for distributing assistance to ensure aid is allocated more fairly and reaches those who need it most.
KUALA LUMPUR: The Malaysian government is exploring the use of households' net disposable income as a basis for providing aid, in order to ensure a fairer distribution of assistance. Deputy Economy Minister Datuk Seri Mohd Shahar Abdullah explained that this approach is more practical than the current method that bases aid on gross income, as it factors in essential expenditure commitments, demographic factors, and the actual place of residence for each household.
The ministry is currently engaging with relevant agencies to conduct a pilot project that will evaluate the proposed approach and its potential effects on the nation's fiscal position. As the new measurement mechanism is finalized, the government is maintaining its efforts to alleviate the cost-of-living burden for Malaysians through various measures included in the 2027 Budget.
These include RM200 Early Schooling Assistance for every student, irrespective of their parents' income, and a RM3,000 increase in individual tax relief from RM9,000 to RM12,000. In response to a question from Datuk Seri Jalaluddin Alias (BN-Jelebu) about the government's assessment of the financial situation of the middle-income group, Shahar stated that the measures would cater to all segments of Malaysian society, not just lower-income households.
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