KUALA LUMPUR: The government is studying the use of net disposable income as a basis for distributing assistance to ensure aid is allocated more fairly and reaches those who need it most.
Deputy Economy Minister Datuk Seri Mohd Shahar Abdullah said the approach was considered more realistic than the existing gross income-based method as it takes into account households' essential expenditure commitments, demographic factors and actual place of residence.
He said the ministry was in discussions with relevant agencies to implement a pilot project to assess the impact of the proposed approach and its potential impact on the country's fiscal position.
"While the new measurement mechanism is being finalised, the government continues to implement various measures under the 2027 Budget to ease the people's cost-of-living burden.
"These include the RM200 Early Schooling Assistance for every student, regardless of their parents' income and an increase in individual tax relief to RM12,000 from RM9,000 among others," he said in response to Datuk Seri Jalaluddin Alias (BN-Jelebu) in the Dewan Rakyat.
Jalaluddin had asked about the government's assessment of the financial circumstances of the middle-income group, which faces rising costs for housing, education, healthcare and family commitments.
Shahar said the government would ensure that its measures took into account not only lower-income households but also all segments of Malaysian society.
© New Straits Times Press (M) Bhd