Aid eligibility to use net disposable income from 2027
The assessment will consider household liabilities and demographic factors alongside income, Deputy Economy Minister Datuk Seri Mohd Shahar Abdullah said.
Malaysia will adopt net disposable income (NDI) to assess eligibility for government aid in 2027, Deputy Economy Minister Datuk Seri Mohd Shahar Abdullah told the Dewan Rakyat. The approach will account for basic spending, liabilities and socio-demographic circumstances rather than income alone.
Mohd Shahar said the Economy Ministry was discussing a pilot project with relevant agencies to examine how adopting NDI would affect the country’s fiscal position. He was responding to questions from Datuk Seri Jalaluddin Alias (Barisan Nasional-Jelebu) about the financial position of middle-class households and measures to support them.
Citing the Department of Statistics Malaysia’s 2024 household income survey, he said households in the middle 40% income group (M40) recorded monthly gross income of RM5,860 to RM12,679. Their monthly average was RM8,744.
He said nearly 70% of M40 income went towards basic expenses. Housing and utilities accounted for 22.7%, food for 34.1% and transportation for 10.6%. Medical protection commitments left households with little income at month-end, he added.
Pending completion of the new methodology, Mohd Shahar said Budget 2027 included support covering housing, education, healthcare, taxation and wages. He also cited Budi5 and early schooling assistance as examples of aid with broader coverage that includes the middle class.
Income-group thresholds are revised using household income and expenditure surveys, he said. The next survey is scheduled for 2027, with findings due in 2028.
