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10 million households could qualify for new T15 classification - Rafizi

MELAKA: The Economy Ministry and the Finance Ministry are finalising details of the T15 group category, with plans to present it to the Cabinet for approval within a month.

Economy Minister Rafizi Ramli said that this timeframe is needed to create a more precise framework for the T15 group, which will be based on local conditions instead of a national-level definition as used in previous policies.

High-income individuals, known as T15, will be classified according to their net disposable income and place of residence.

Rafizi said that assessing net disposable income must consider the Basic Living Expenditure (PAKW) specific to each locality.

He noted that about 10 million households nationwide could potentially qualify for the T15 classification, but careful evaluation is necessary using various databases, including the Main Database System (PADU).

Rafizi was speaking after attending the Engagement Session for the 13th Malaysia Plan at Hatten Hotel, Banda Hilir, which was officiated by Melaka Chief Minister Datuk Seri Ab Rauf Yusoh.

"If we use a uniform definition for the entire country, that's where injustice occurs," he said. "For instance, a person earning RM15,000 in Kuala Lumpur may not be considered wealthy compared to someone with the same income in Gua Musang."

The T15 definition will also consider net disposable income per household, taking into account dependents and the basic cost of living necessary for a decent lifestyle.

Rafizi defined a decent life as one that includes not just housing and food, but also spending on social activities, entertainment, and healthcare.

During the presentation of the 2025 Budget on Oct 18, Prime Minister Datuk Seri Anwar Ibrahim announced that some subsidies would be reduced for the T15 group.

This has led various groups to urge the government to review household income classifications to ensure that assistance and fuel subsidies are not excluded.

Anwar also criticised those defending subsidies for the T15 group, even when their incomes range from RM100,000 to RM1 million.

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