LETTER | The continued practice of categorically classifying all T20 households as “high income” and subsequently reducing or denying subsidies is unfair and disconnected from the actual economic realities faced by many.

While the T20 category was originally intended to identify the nation’s top earners, the reality is that not every T20 household enjoys financial comfort or economic security, especially amid rising living costs and economic slowdown.

A family earning between RM11,000 and RM13,000 a month in an urban area may technically fall under the T20 classification, but this does not automatically make them wealthy.

Many of these households are burdened by high housing and mortgage commitments, childcare and education expenses, vehicle loan repayments, rising food and utility costs, increasing healthcare expenses, stagnant wages, as well as higher taxes and mandatory contributions.

After deducting these commitments, their actual disposable income and purchasing power may not be significantly different from those of middle-income households.

Unjust move

Therefore, it is unjust for the government to continue relying on a broad and simplistic T20 classification as the sole basis for subsidy rationalisation and financial assistance policies.

Such an approach fails to reflect the different financial realities faced by Malaysians, particularly those living in urban centres where the cost of living is substantially higher.

Economic hardship today is no longer confined to one category alone, as many ordinary working families within the lower T20 segment are also struggling to cope with inflationary pressures and declining purchasing power.

People’s Progressive Party Malaysia urges the government to adopt a more dynamic, fair, and realistic classification system that takes into account disposable household income, household size, number of dependents, urban versus rural cost of living, debt burden, and actual spending power.

A more targeted and data-driven approach would ensure that assistance reaches those who genuinely require support while avoiding the unfair penalisation of hardworking Malaysians.

Subsidy reforms must be implemented with fairness, compassion, and a clear understanding of the realities on the ground.

The government must move beyond outdated blanket classifications and introduce policies that truly reflect the economic conditions faced by the rakyat today, ensuring that no struggling family is left behind simply because they are categorised under a broad income group label.

Writer is the president of People’s Progressive Party Malaysia.

The views expressed here are those of the author/contributor and do not necessarily represent the views of Malaysiakini.