A STUDY ON THE CLASSIFICATION OF HOUSEHOLD INCOME AND GRADUAL REMOVAL OF SUBSIDIES

Abstract

Categorizing household income is not an easy task as it can easily generates dispute. The announcement by the Prime Minister of Malaysia, Datuk Seri Anwar Ibrahim's concerning the T15 subgroup for household classification is an example. The announcement has generated significant discussion among Malaysians. Questions have centred on: What is the meaning of T15 —the top income group? Will such removal create a fairer distribution of the economic pie? If implemented, will the removal benefit our economy? Thus, this research aims to (1) explore public opinion on the minimum household income required to classify a household into the decent, comfortable, and luxury categories; (2) finding out public feedback regarding the recent decision by the government to remove subsidies from the T15 group. A survey conducted among 514 respondents found that defining T15 solely based on income is insufficient, as other factors ought to determine the classification, such as the cost of living, location, household size, age group, ethnicity, and marital status. Furthermore, respondents believed that vague explanations about the subsidy removal were a concern that led to their opposition to this decision. Although the intention behind the move is clear, questions persist regarding the precise mechanics of its implementation. This research hopes to convey public concerns about implementing the T15 and the subsidy removal, enabling policymakers to establish a more comprehensive and inclusive mechanism to tailor an economic policy that benefits all Malaysians equally.