13/12/2025

SATURDAY | DEC 13, 2025

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Experts supportive of shift in wages classification

Ministry ready to ensure goods reach remote areas KUALA LUMPUR: The Domestic Trade and Cost of Living Ministry is prepared to add new control posts to ensure the supply of essential and subsidised goods reaches remote areas that continue to face accessibility issues. Its deputy minister Datuk Dr Fuziah Salleh said under the Essential Goods Distribution Programme, the opening of new control posts could be considered if an area is more than 15km from an existing post and the price of controlled goods sold exceeds 50% of the controlled price due to high logistical costs. “(The ministry) is open to discussing with MPs and local representatives to examine areas that require additional control posts,” she said when winding up the debate on the Supply Bill (Budget 2026) for the ministry in the Dewan Negara on Thursday. She was responding to Senators Michael Mujah Lihan and Norhasmimi Abdul Ghani, who had previously raised the issue of the programme in remote areas that are difficult to access, leading to rising logistical costs. She added that the government has allocated RM250 million to the programme, covering 120 distribution zones, 559 areas and 820 points of sale nationwide, including remote areas in Sabah, Sarawak and Pahang. She also said high costs, including boat transport to the interior regions of Sabah and Sarawak, would cause the prices of controlled goods such as LPG, wheat flour, sugar and subsidised cooking oil to skyrocket without government intervention through the programme. Addressing the concerns of some senators regarding the difficulty faced by the public in obtaining subsidised cooking oil for wedding feasts or bulk use by small traders, Fuziah said the daily production contract for the oil has been set at 60,000 cartons per day and cannot be arbitrarily increased. However, she said the ministry is prepared to consider the views put forward to ensure the needs of the public could be considered without compromising the integrity of the subsidy system. Meanwhile, Housing and Local Government Deputy Minister Datuk Aiman Athirah Sabu said the ministry, through PLANMalaysia, would expand the development of the Malaysia Urban Observatory analytical dashboard for flood disaster risk area detection to other states, starting next year. She added that so far, the development of the dashboard has been completed for Perak and Selangor. “The dashboard analytics allows for the detection of areas prone to floods and flash floods by identifying land use types such as construction areas, residential areas and commercial areas as a mitigation measure in collaboration with the authorities, state governments and the federal government.” – Bernama

o Disposable-income model could lead to broader eligibility for fiscal aid: Academic

Ramli in June 2023 was a sound policy idea that could improve subsidy targeting. “I think the initiative better reflects (how) individuals should be categorised and helps the government target subsidies more effectively, especially for assistance such as RON95 fuel subsidies and the Rahmah Cash Contribution. “Sometimes an M40 individual (could have) many commitments to cover and fall into the B40 category after accounting for net spending and what is left from their income. “At the same time, a B40 individual may live comfortably because of lower commitments and spending habits,” he told theSun . However, he added that discussion about the policy slowed following Rafizi’s resignation. He also said the Central Database Hub, introduced in 2024, was expected to support such classifications. “Before he resigned, there was an

commitments require data from various institutions, including banks and insurance companies,” he said, adding that the database hub could be used to centralise updated financial disclosures. Universiti Teknologi Mara economist Dr Mohamad Idham Md Razak said disposable income provides a fairer reflection of living conditions as it accounts for realistic household obligations. He also said such findings could attribute to a more practical review of graduate starting salaries and wage policies, but cautioned that any adjustments must be carefully calibrated to avoid excessive pressure on employers. “On findings that single individuals aged 25 to 30 earning between RM3,000 and RM4,000 lose nearly half of their income to monthly commitments, there is an economic basis for the government to reassess graduate starting salaries. “While the minimum wage cannot be raised abruptly without affecting business operating costs, the government could consider graduate pay policies that are better aligned with the cost of living in major urban centres. “Measures such as hiring incentives, tax credits for employers and industry-based upskilling programmes could help raise graduates’ effective wages without placing excessive pressure on businesses.” Williams Business Consultancy director Prof Geoffrey Williams was more cautious, saying true disposable income is difficult to measure. “A clearer and more practical measure would be net income after statutory deductions such as EPF and income tax, which is already collected by the Inland Revenue Board, but only for those in formal employment. “(Another) simpler approach would be to use a reverse income tax, in which those earning below a threshold such as the median wage would receive a tax credit, or a monthly assistance for those who are not employed.”

announcement about a (second phase) of the (database hub). If the initiative is to proceed, it should be based on past household income research, particularly those by Khazanah.” Putra Business School MBA and DBA director Prof Dr Ahmed Razman Abdul Latiff said a shift to disposable income classification could lead to broader eligibility for fiscal assistance. “There is a possibility that the government would allocate more fiscal aid to certain groups because segments of the M40 may not have disposable income due to factors such as (more) household dependants, urban living and high debt burdens.” On implementation, he said financial commitments are more complex to obtain. “Salary information could be obtained from the Employees Provident Fund (EPF) and Inland Revenue Board, but financial

Ű BY FAIZ RUZMAN newsdesk@thesundaily.com

PETALING JAYA: Experts support the notion of a shift from Malaysia’s income classification of B40 (bottom 40%), M40 (middle 40%) and T20 (top 20%) categorisation to a disposable income model which could provide a more accurate picture of household financial pressure. However, they say data integrity and feasibility remain its key challenges. Socio-Economic Research Centre executive director Lee Heng Guie said the proposal previously raised by then Economy minister Datuk Seri Rafizi

Mohamad Idham said disposable income provides a fairer reflection of living conditions as it accounts for realistic household obligations. – AMIRUL SYAFIQ/THESUN

M’sians express preference for updated earnings framework PETALING JAYA: Young adults and urban families have spoken to theSun about the continued strain of rising living costs and expressed their preference for a disposable-income classification model to replace the current categories. existing income groups with a disposable-income framework. “Some M40 might fall into (the B40 group) after paying off (large) commitments, while some B40 may be comfortable because of their living arrangements. Disposable income is a better way to assess a household’s situation.” monthly balance affects my financial decisions. “With such a small amount left, it definitely feels tight. A lot of things have to be postponed and saving is difficult.” He expressed hope that any future policy reflects household pressure realistically.

income is still enough, rising prices for basic goods and services mean I have to be more careful with my budget.” She added that she remains cautious despite being able to save. “I hope the government could stabilise living costs and provide more targeted support so people could plan their finances with more confidence.” Human resource executive Safwan Adlan, 25, who lives in Mutiara Damansara and earns RM4,000, said his basic monthly expenses come to about RM1,500, leaving him with about RM2,000. However, food and education related debt remain his main concerns. “Food prices vary a lot by location and my workplace does not have cheaper alternatives. My (student) loan payment is also ongoing.” He supported the idea of replacing

Environmental executive Syaza Lina, 33, who lives in Subang Jaya and earns above RM6,000, said her monthly essential expenses of car-related commitments, housing maintenance and utilities, food and transport come to about RM3,800. “The biggest (source of) pressure each month is my car loan since I don’t have a housing loan yet. My mother has paid for my apartment, so I will only have to pay for utilities and maintenance. “However, food and daily expenses in Kuala Lumpur, where I work, are quite high. Although my remaining

“I hope the government could provide more accurate, needs-based assistance based on disposable income, ease housing and childcare costs and control essential prices. That would help a lot.” The gathered responses indicate that fixed commitments and rising daily expenses are constraining disposable incomes, prompting renewed scrutiny of whether current income classifications capture the reality of financial strain. – By Faiz Ruzman

Adib Yahya, 34, a photographer based in Petaling Jaya who earns RM2,500 and is supporting a family of three, said rising costs leave him with minimal room each month. He said his essential expenses, covering rent, food, utilities, fuel and his four-year-old child’s needs, come to (about) RM2,200, leaving only about RM300. “The most stressful parts are rent and child-related costs. Prices keep going up and as children grow, expenses increase quickly. The limited