MELAKA: The definition of the T15 category is expected to be based on location and net disposable household income.
Economy Minister Rafizi Ramli said the details, anticipated to be completed in a month, are being finalised in collaboration with the Finance Ministry before being presented to the Cabinet for approval.
He said these details are necessary to provide a more accurate framework for the T15 group, which will be determined based on locality rather than national definitions, as seen in previous policies.
“It (T15) will not be a simple line (of definition) for the entire country because expenses vary, and living standards differ by area.
“If we apply a blanket definition for the whole country, that’s where injustice occurs.
“Someone earning RM15,000 in Kuala Lumpur, which is in an expensive area, may not be considered as wealthy as someone earning RM15,000 in Gua Musang... so the determination (of T15) will likely be based on location,” he said.
He said this after attending a stakeholder engagement session with the Melaka government over the 13th Malaysia Plan, which was also attended by Chief Minister Datuk Seri Ab Rauf Yusoh yesterday.
Rafizi added that the basis for the definition of the T15 will also be guided by the net disposable income of a household, with the measure of dependents based on the basic cost of a decent living, Bernama reported.
“This means that for each family of a certain size, what is the minimum amount needed to lead a decent life.
“A decent life is defined not just by having a good home and access to food and drink, but also includes expenses for participating in social activities, entertainment, and so on... with health being well taken care of,” he said.
Prime Minister Datuk Seri Anwar Ibrahim, when tabling Budget 2025 on Oct 18, said that several subsidies will be reduced for the T15 group and this has drawn attention from various parties who are urging the government to reassess the classification of household income to prevent the exclusion of aid and fuel subsidies.
Anwar also criticised the actions of some who defended subsidies for the T15 group, despite their incomes reaching RM100,000 to RM1mil.