Refocus on needs, less on income categories

Free Malaysia Today

Subsidy rationalisation must benefit those who need it most, whether or not they are earning a high income, says economist.   Read More:  https://www.freemalaysiatoday.com/category/nation/2024/11/27/refocus-on-needs-less-on-income-categories/   Laporan Lanjut:  https://www.freemalaysiatoday.com/category/bahasa/tempatan/2024/11/27/fokus-semula-pada-keperluan-kurangkan-kategori-pendapatan/   Free Malaysia Today is an independent, bi-lingual news portal with a focus on Malaysian current affairs.    Subscribe to our channel - http://bit.ly/2Qo08ry   ------------------------------------------------------------------------------------------------------------------------------------------------------  Check us out at https://www.freemalaysiatoday.com  Follow FMT on Facebook: https://bit.ly/49JJoo5  Follow FMT on Dailymotion: https://bit.ly/2WGITHM  Follow FMT on X: https://bit.ly/48zARSW  Follow FMT on Instagram: https://bit.ly/48Cq76h  Follow FMT on TikTok : https://bit.ly/3uKuQFp  Follow FMT Berita on TikTok: https://bit.ly/48vpnQG  Follow FMT Telegram - https://bit.ly/42VyzMX  Follow FMT LinkedIn - https://bit.ly/42YytEb  Follow FMT Lifestyle on Instagram: https://bit.ly/42WrsUj  Follow FMT on WhatsApp: https://bit.ly/49GMbxW  ------------------------------------------------------------------------------------------------------------------------------------------------------  Download FMT News App:  Google Play – http://bit.ly/2YSuV46  App Store – https://apple.co/2HNH7gZ  Huawei AppGallery - https://bit.ly/2D2OpNP   #FMTNews #Subsidy #Income #Madani

Transcript

00:00The government should turn its focus back to a needs-based subsidy program

00:06rather than distributing aid based on one's income level, say several experts.

00:11Economist Jeffrey Williams said there are many instances where families in the top 10 to 15%

00:17of earners may need help. For example, he said a household with a disabled family member who

00:23requires 24-hour care would need healthcare subsidies even if they fall under the T15

00:28category. Similarly, the Federation of Malaysian Consumer Associations said a needs-based subsidy

00:36program promotes equity by prioritizing households with heavier financial burdens.

00:42Its CEO, T. Sarabanan, said this framework ensures that subsidies reach those who need them the most

00:48regardless of their income levels, rather than lumping households into generic income categories.

00:54He pointed out that two households with the same monthly income may have vastly different

00:58situations, with one supporting elderly parents or footing high medical expenses,

01:03and the other not burdened by such costs. When tabling the 2025 budget in October,

01:09Prime Minister Anwar Ibrahim had announced that several subsidies would be withdrawn for the T15

01:14group. This month, however, the government launched the Basic Expenditure of Decent Living

01:19Classification System, aimed at replacing the traditional B40, M40, and T20 segmentations.

01:27Natasha Biest, FMT News

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