Deputy economy minister Shahar Abdullah said that assistance is currently largely determined based on the poverty line income, and the B40, M40 and T20 income classifications, Bernama reported.

However, the government plans to improve the assistance framework under the 13th Malaysia Plan (13MP), which begins this year.

“The government believes that the NDI concept can be introduced as a basis for providing assistance to reduce the risk of exclusion and ensure a fairer approach by taking into account the requirements of a decent standard of living, as well as variations based on location and household demographics,” he was quoted as saying during a question-and-answer session at the Dewan Rakyat.

Shahar was responding to Isam Isa (BN-Tampin) who asked about the timeline and current status of implementing NDI-based assistance, taking into consideration the Basic Expenditure for Decent Living (PAKW).

He explained that NDI is calculated by deducting total PAKW from disposable income (DI).

DI refers to a household’s total gross income after deductions for EPF contributions, taxes, zakat and Perkeso contributions.

Shahar added that implementing the NDI concept would take time, as it requires further research as well as the availability of comprehensive household data to ensure its effectiveness.