KUALA LUMPUR: In the latest episode of Beyond the Headlines, hosts Amalina Kamal and Hazween Hassan expand the discussion on Malaysia's 2025 Budget, focusing on wealth distribution and changes in income classification.
They discuss the impact of the Madani government's budget plan, particularly the targeted approach to support the bottom 85 per cent of income earners while the top 15 per cent, dubbed the 'T15,' will face changes, such as the removal of petrol subsidies.
A key aspect discussed is the shift from using gross household income to net income, which takes into account what families actually take home after deductions.
This approach, proposed by Economy Minister Rafizi Ramli, aims to offer a more realistic understanding of Malaysians' financial well-being.
The government's plan to refine the classification system to better define groups like the B40, M40, and T15 is still in progress, raising concerns on the clarity of the T15 policy.
The episode also touched on the expansion of the middle class, which is seen as essential to Malaysia's goal of becoming a high-income country.
Economists believe the 2025 Budget has the potential to reshape Malaysia's income pyramid into a more balanced "diamond" shape, strengthening the middle-income group.
However, challenges remain particularly with wage stagnation and the gig economy's impact on workers.
The show also touched on the importance of bridging the perception gap and ensuring policies translate into real financial benefits for everyday citizens.
Insights from the show's guest, economist Professor Dr Yeah Kim Leng, highlight that financial health goes beyond income figures, involving factors like household size, geographical disparities, and lifestyle habits.
Separately, the episode probed on alternative ways to measure financial well-being, geographical cost-of-living variations, and how cash transfers like the STR (Sumbangan Tunai Rahmah) can address immediate financial needs while ensuring long-term economic stability.
Watch the latest episode of Beyond the Headlines on NST Online's YouTube channel.