From B40/M40/T20 to PAKW — a quantum leap in aid programme - video Dailymotion

Free Malaysia Today

PAKW, which determines the basic cost of living by location and other factors, is the Madani government’s strategy to ensure a decent standard of living for all Malaysians.    Free Malaysia Today is an independent, bi-lingual news portal with a focus on Malaysian current affairs.    Subscribe to our channel - http://bit.ly/2Qo08ry   ------------------------------------------------------------------------------------------------------------------------------------------------------  Check us out at https://www.freemalaysiatoday.com  Follow FMT on Facebook: https://bit.ly/49JJoo5  Follow FMT on Dailymotion: https://bit.ly/2WGITHM  Follow FMT on X: https://bit.ly/48zARSW  Follow FMT on Instagram: https://bit.ly/48Cq76h  Follow FMT on TikTok : https://bit.ly/3uKuQFp  Follow FMT Berita on TikTok: https://bit.ly/48vpnQG  Follow FMT Telegram - https://bit.ly/42VyzMX  Follow FMT LinkedIn - https://bit.ly/42YytEb  Follow FMT Lifestyle on Instagram: https://bit.ly/42WrsUj  Follow FMT on WhatsApp: https://bit.ly/49GMbxW  ------------------------------------------------------------------------------------------------------------------------------------------------------  Download FMT News App:  Google Play – http://bit.ly/2YSuV46  App Store – https://apple.co/2HNH7gZ  Huawei AppGallery - https://bit.ly/2D2OpNP   #FMTNews #RafiziRamli #PAKW #PayungRahmah

Transcript

00:00For decades, the government has categorized Malaysian households into three income groups

00:08– B40, M40, and T20.

00:12The metric has traditionally been used to deliver aid to the masses in the form of subsidies,

00:17tax reliefs, and cash handouts like initiatives under Payang Rahma.

00:22But it is not without flaws.

00:29Economy Minister Rafizieh Ramlee said this approach, which relies solely on a household's

00:34gross monthly income, fails to consider important factors such as demographics, number of dependents,

00:40and area of residence.

00:42For example, a family of four with a gross income of 10,000 ringgit can live comfortably

00:48in Kelantan, but may struggle to do so in Kuala Lumpur due to the higher cost of living

00:53there.

00:54It's clear that a more comprehensive measure is needed.

00:57The economy ministry has proposed a review of the existing household categories to allow

01:02more targeted assistance.

01:03The government's previous measures were based on B40, M40, and T20, and they were not fair

01:12because they did not take into account other factors.

01:16That's why the government has shifted towards net disposable income.

01:21That means we look at how much income we have, and then we take into account all the

01:28other factors.

01:29For example, how many children do we have, how many dependents, and where do we work.

01:33Beginning November 2nd, the government will adopt a new and improved classification system

01:38called Basic Expenditure of Decent Living.

01:41The introduction of PAKW also comes with a new definition of what is considered a decent

01:46standard of living.

01:47To lead a meaningful life, Putrajaya has determined that a household must be able to

01:51afford three things, essentials such as food, personal desires such as entertainment, and

01:58opportunities to participate in community activities.

02:01By leveraging existing data from the ministry's central database hub, PAKW will not only be

02:06able to calculate the cost of living for individual households, but also the average across all

02:11households in a given area.

02:13What's more, this tailor-made approach will be used to guide and shape future government

02:17policies, with a focus on identifying vulnerable communities while reducing assistance for

02:23families who require less support.

02:25As Malaysia aims to become a high-income nation by 2028, the government is committed to improving

02:30living standards through PAKW, ensuring that people have sufficient funds not only to meet

02:36their basic needs, but also to lead comfortable lives.

02:41Dhanushwa Dureza, FMT News.

02:43For more information, visit www.fmt.gov.au

From B40/M40/T20 to PAKW — a quantum leap in aid programme

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