While the T20 bracket is intended to represent the nation’s top earners, not all households within this category enjoy financial comfort or security, particularly amid inflation and economic slowdown.
PETALING JAYA: As rising living costs blur traditional income boundaries, Malaysia’s continued use of the T20 income classification as a blanket indicator of “high income” households is increasingly outdated and unfair, says People’s Progressive Party (PPP) Malaysia president Datuk Dr Loga Bala Mohan.
He said the current system of categorising all T20 households as high-income earners has led to policies that reduce or remove subsidies without adequately considering the real financial pressures faced by many families within the group.
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He added that while the T20 bracket is intended to represent the nation’s top earners, not all households within this category enjoy financial comfort or security, particularly amid inflation and economic slowdown.
“A family earning between RM11,000 and RM13,000 a month in urban areas may technically fall under the T20 category but that does not automatically make them wealthy.” He said many such households are burdened by housing loans, childcare and education expenses, vehicle repayments, rising food and utility bills, healthcare costs, stagnant wages as well as taxes and mandatory contributions.
He added that after accounting for these commitments, disposable income and actual purchasing power often differ little from those of middleincome households.
Loga Bala said it is therefore unjust for the government to continue relying solely on broad income categories when determining subsidy rationalisation and financial assistance policies.
He said the current framework fails to reflect the diverse economic realities faced by Malaysians, especially those living in urban centres where the cost of living is significantly higher.
“Economic hardship today is no longer confined to a single income group. Many households in the lower T20 segment are also struggling due to inflationary pressures and declining purchasing power,” he said.
PPP Malaysia has urged the government to adopt a more dynamic classification system that considers disposable income, household size, number of dependents, location based living costs, debt levels and actual spending power.
Loga Bala said such a data-driven approach would ensure that financial assistance is better targeted, while preventing the unfair exclusion of households that are still under economic strain.
He stressed that subsidy reforms must be implemented with fairness and compassion.
“The government must move beyond rigid income labels and ensure that no struggling family is left behind simply because of how they are categorised,” he said.
