KUALA LUMPUR: The classification of the T15 income group will not be based solely on basic household income, as it will also factor in other variables, said Economy Minister Rafizi Ramli.
The government, Rafizi said, is currently developing an approach that considers various factors, including locality and government obligations, to ensure a fairer distribution of subsidies.
"When the prime minister (Datuk Seri Anwar Ibrahim) mentioned T15 (during the tabling of the 2025 Budget), it refers to the methods that will be announced later.
"So, if you ask me what the income for T15 is, we need to go through a process (to determine it) because we want it to be fairer.
"But, suffice it to say for the time being, it is not just based on basic household income.
"It will take into account many other factors and not like what is being viral on social media, claiming if your salary is this much… you will not get (subsidies)," he told reporters after attending the 2024 National Statistics Day celebration and the pre-launch of Laman Statistik here today.
Rafizi said the existing measurements based solely on basic household income are limited and unfair.
"We want to make it fairer than before, and it will not simply be based on household income like it was in the past.
"We have to consider many variables and not treat everyone the same.
"The problem now is that I know the media and social media (users) want to know everything (about the classification).
"But, we are looking at 30 million population in the country. So we need to determine how many variables we should use to ensure fairness."
Previously, many groups have urged the government to clarify the T15 income group definition, which will not be eligible for government subsidies under the 2025 Budget.
During the tabling of the 2025 Budget on Friday (Oct 20), Anwar had announced that subsidies will be gradually reduced for the T15 group, with savings be used to improve infrastructure for boarding schools and public universities.
He also announced that a targeted subsidy plan for RON95 fuel will be introduced in the middle of next year.
He said the savings generated by the government will be reinvested for the benefit of the public.
Anwar, who is the Finance Minister, had said that foreigners and the 15 per cent wealthiest of the population have also been enjoying the current 40 per cent subsidy meant for RON95.
Anwar had also said the RM8 billion in subsidies would be better allocated to improving education, healthcare and public transport.
Last year, the government subsidised RON95 by up to RM20 billion.