Economy Minister Rafizi Ramli says the current government’s approach is different from the previous administration, including when it comes to aid or subsidies.
Rafizi said the government needed to ensure that all infrastructure was available and conduct pilot tests before deciding the income level that would qualify for assistance.
He said the government was trying to minimise subsidy exemption errors due to the classification of salary categories, but it needed to be carried out in stages.
“At the government level, on the part of the National Economic Action Council (MTEN), for example, we have started discussing the simulation this week – who should get what, what approach will be given, will there be universal child support, will there be increased income value and so on.
“Everything has been discussed. I think next year, you will see a shift away from blanket subsidies and the T20, B40, M40 classifications will slowly be phased out.
“We will launch one after another, integrated social assistance based on household net spendable income,” he said.
Rafizi further explained that the matter could be realised with the cooperation of various agencies through partnership in the Main Database (Padu), thus ensuring the effectiveness of the implementation of the government’s subsidy program.
In May, Rafizi said that the government would begin to implement the transition of socioeconomic policy from an approach based on B40, M40 and T20 income to one based on households’ net spendable income, starting in January 2024.
