KUALA LUMPUR: The localised data from the Basic Expenditure for Decent Living (PAKW) will enable more precise targeting of government assistance, including RON95 petrol subsidies.
Chief Statistician Datuk Seri Sri Dr. Mohd Uzir Mahidin, explained that unlike the B40 and M40 classifications, which are based on household and individual income, PAKW data takes into account factors, such as location and the number of dependents, making it a more comprehensive approach.
"The development of this indicator is a significant milestone for the Department of Statistics Malaysia after 75 years, as it allows the country to advance by providing assessments that can be used to guide targeted assistance programmes,” he said.
The data can also be used by non-governmental organisations and zakat centres to assist the asnaf community (those eligible to receive zakat or tithe) or to address national food security issues, based on evaluations of agricultural management and productivity, he added.
He was speaking to reporters after the PAKW and Gross Domestic Product (GDP) Town Hall session organised by the department on Thursday (Nov 14)
Launched last week, PAKW is part of the 2023 Cost of Living Indicator (KSH), alongside the Cost of Living Index (IKSH).
It represents the monthly expenditure required for a household or individual to maintain a decent standard of living that meets their needs, desires, and ability to engage in social activities.
According to Mohd Uzir, PAKW differs for each household based on their needs and family composition.
For example, in Kuala Lumpur, the average PAKW is projected at RM2,233 for a one-person household, RM3,771 for two, RM5,157 for three, RM6,536 for four, RM7,873 for five, and RM9,864 for six or more persons.
"We hope these projections will not be misused by employers to offer low wages simply because the PAKW in a particular area is low,” he added.- Bernama
