New approach to ensure more focused distribution of subsidies - Rafizi

A household net disposable income metrics approach will be implemented in January next year (2024).

The move is an economic structuring measure for a more focused distribution of targeted subsidies, said Economy Minister Rafizi Ramli.

He said the approach now, which focuses on B40, M40 and T20 income, does not provide an accurate picture of household disposable income.

This involves household disposable income compared from one household to another, covering the number of dependent children and individual location.

Rafizi said this new approach will be integrated with the socioeconomic database Pangkalan Data Utama (PADU), announced by Prime Minister Anwar Ibrahim recently.

The integration move is an effort to combine socioeconomic information for every household in the country to streamline the implementation of targeted subsidies, he said.

“Once we get to that level (household net disposable income), we will get a clearer picture of the net disposable income’s comparability for households.

“This will allow us to refine any government programmes and target subsidies accordingly," he said in a press conference in Putrajaya today.

He adds that the government will focus on the electricity and diesel subsidy components that have been announced and monitor their effectiveness before announcing any decision on the RON95 subsidy.

“When we start switching to RON95, of course, the consideration is bigger, involving more people and families from each household.

“That's why we will ensure PADU is available by 2024, and any decision on how to target RON95 can be made easily," he said.

Rafizi said the Economy Ministry will coordinate with other ministries and agencies to accelerate the implementation of small, people-friendly projects nationwide to help the country's economic growth.

“One step we will take is to ensure that the government spending will continue and to focus on small projects where the procurement and approval process can be simplified and expedited,” he said.

- Bernama

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