Economy Ministry to finalise T15 definition in a month

MELAKA: The Economy Ministry is finalising the details of the T15 group category in collaboration with the Finance Ministry before tabling it to the Cabinet for approval, said Minister Rafizi Ramli.

He said that these details, expected to be completed in a month, are necessary to provide a more accurate framework for the T15 group, which will be determined based on locality, rather than national definitions as in previous policies.

"It (T15) will not be a simple line (of definition) for the entire country because expenses vary, and living standards differ by area.

"If we apply a blanket definition for the whole country, that is where injustice occurs. Someone earning RM15,000 in Kuala Lumpur, which is in an expensive area, may not be considered as wealthy as someone earning RM15,000 in Gua Musang... so the determination (of T15) will likely be based on location.”

Rafizi said this to reporters after attending a stakeholder engagement session for the 13th Malaysia Plan (RMK13) with the Melaka government, which was also attended by Chief Minister Datuk Seri Ab Rauf Yusoh today.

The minister said that the basis for the definition of T15 will also be guided by the net disposable income of a household, with the measure of dependents based on the basic cost of a decent living.

"This means that for each family of a certain size, what is the minimum amount needed to lead a decent life.

"A decent life is defined not just by having a good home and access to food and drink, but also includes expenses for participating in social activities, entertainment, and so on... with health being well taken care of,” he said.

Prime Minister Datuk Seri Anwar Ibrahim, when tabling the 2025 Budget on Oct 18, said that several subsidies will be reduced for the T15 group and this matter has drawn attention from various parties who are urging the government to reassess the classification of household income to prevent the exclusion of aid and fuel subsidies.

Anwar also criticised the actions of some who defend subsidies for the T15 group, despite their incomes reaching RM100,000 to RM1mil.