Kuala lumpur: The government is considering the introduction of Net Disposable Income (NDI) as a new benchmark for providing assistance, aiming to minimize exclusion risks and ensure a more equitable distribution of aid. Deputy Economy Minister Datuk Mohd Shahar Abdullah shared this development during a session at the Dewan Rakyat.

According to BERNAMA News Agency, the current system of government assistance primarily relies on the Poverty Line Income (PGK) and the classifications of B40, M40, and T20 income brackets. However, the government plans to enhance this framework during the 13th Malaysia Plan (13MP) period, which commences this year. The NDI concept is being considered to provide a fairer approach by accounting for a decent standard of living and variations based on location and household demographics.

Mohd Shahar explained that NDI is calculated by deducting Basic Expenditure for Decent Living (PAKW) from disposable income (DI). DI encompasses a household's total gross income after subtracting contributions to the Employees Provident Fund (EPF), taxes, zakat, and Social Security Organisation (Perkeso) contributions. He noted that the implementation of the NDI concept would require time due to the need for further research and comprehensive household data to ensure its effectiveness.