KUALA LUMPUR: Pilot projects are being explored to test a new way of classifying household income, including net disposable income (NDI) as part of efforts to better target social assistance, says Akmal Nasrullah Mohd Nasir (pic).
The Economy Minister said the proposed review of income classification requires further study and comprehensive household data.
“This will ensure it can be effectively implemented in determining eligibility for social assistance under the 13th Malaysia Plan 2026-2030.
“At present, we are in discussions with relevant ministries and agencies to explore suitable pilot projects,” he said in a parliamentary written reply in response to a question from Tenom MP Riduan Rubin at the Dewan Rakyat.
Riduan had asked the Economy Ministry to state whether the government intends to replace the traditional B40, M40 and T20 classification with a more targeted new mechanism such as NDI, location of residence, number of household dependents and local cost of living to ensure subsidies truly reach those in need.
Akmal Nasrullah said the current social assistance and poverty support programmes are based on the national poverty line income (PLI), which is RM2,705 in 2024.
“The PLI already takes into account basic household needs covering food and non-food items including housing, health and education.
“Assistance is also targeted at the B40 group, based on income eligibility thresholds, which are determined by gross household income,” he said.
The government, he added, is currently studying several more appropriate measurement methods in order to determine target groups, including the use of NDI.
