‘T15’ Classification Set To Account Locality, Disposable Income

Economy Minister Rafizi Ramli announced earlier today that details for the T15 group classification exempt from receiving subsidies such as RON95 fuel subsidy are being finalised in collaboration with the Ministry of Finance and will be presented to the Cabinet for approval.

The framework, expected to be completed within a month, will define the T15 group based on locality rather than applying a national definition, as done in previous policies.

Rafizi explained that living standards and expenses vary significantly by area, hence a blanket definition of T15 for the whole country is unjust. He went on to say, "For example, someone earning RM15,000 in Kuala Lumpur may not be considered as wealthy as someone earning RM15,000 in Gua Musang."

Speaking to reporters after a stakeholder engagement session for the 13th Malaysia Plan (RMK13) in Melaka, Rafizi added that the T15 classification will be guided by household net disposable income and will also take into account the number of dependents and the basic cost of a decent living.

He further went on to define that, "a decent life is not just about having a home and access to food and drink but also includes the ability to participate in social activities, entertainment, and maintaining good health."

Could this mean that the usage of the PADU database still remains in the picture as Anwar had not touched on this of late.

The debate with regards to T15 generalised classification has over the recent week kicked off quite a storm after Prime Minister Anwar Ibrahim announced it during the tabling of the 2025 Budget cited it as an example without providing proper clarification.

This had led to backlash from multiple parties with some calling for a reassessment of household income classifications to ensure that those in need are not excluded from aid and, critically, the impending rationalised RON95 fuel subsidies.

Anwar had recently also criticised individuals advocating for subsidies for the T15 group, despite incomes ranging from RM100,000 to RM1 million.