KUALA LUMPUR: The government is considering the use of net disposable income (NDI) as a new benchmark to provide assistance, aimed at reducing exclusion risks and ensuring a fairer distribution of aid.
Deputy Economy Minister Datuk Mohd Shahar Abdullah said that government assistance is currently largely determined based on the Poverty Line Income (PGK) as well as the B40, M40 and T20 income classifications. However, enhancements to the assistance framework will be implemented during the 13th Malaysia Plan (13MP) period, which begins this year.
"The government believes that the NDI concept can be introduced as a basis for providing assistance to reduce the risk of exclusion and ensure a fairer approach, by taking into account the requirements of a decent standard of living, as well as variations based on location and household demographics," he said during a question-and-answer session at the Dewan Rakyat on Thursday (Jan 22).
He was responding to a question from Datuk Mohd Isam Mohd Isa (BN-Tampin) regarding the current status and the proposed timeline for the implementation of assistance based on NDI, taking into consideration basic expenditure for decent living (PAKW).
Mohd Shahar said that, in principle, NDI is calculated by deducting total PAKW from disposable income (DI).
He explained that DI refers to a household's total gross income after deductions for Employees Provident Fund (EPF) contributions, taxes, zakat and Social Security Organisation (Perkeso) contributions.
He added that the implementation of the NDI concept would take time, as it requires further research as well as the availability of comprehensive household data to ensure its effectiveness. - Bernama
