KUALA LUMPUR: The government is reviewing more suitable disaggregation methods to identify target groups, including considering approaches based on disposable income, Deputy Minister of Economy Datuk Hanifah Hajar Taib said.
She noted that the process would require time and careful study before implementation to ensure effectiveness and accuracy.
“The government currently maintains income classifications such as B40 (bottom 40 per cent), M40 (middle 40 per cent) and T20 (top 20 per cent).
“However, under the 13th Malaysia Plan, the determination of target groups for social assistance and subsidies will be improved,” she said during a question-and-answer session in the Dewan Rakyat yesterday.
Hanifah Hajar was responding to Datuk Che Mohamad Zulkifly Jusoh (PN-Besut), who asked about progress on using disposable income classifications to replace gross income measures in the provision of government aid and subsidies.
She explained that current aid is generally based on the poverty line income threshold which considers household basic needs, including both food and non-food items such as health and education.
She also noted that the median income of the B40 group rose by an average of 5.2 per cent to RM3,815 in 2024, up from RM3,440 in 2022.
“The median income of the M40 group also increased, from RM7,694 in 2022 to RM8,999 in 2024, an average rise of 5.6 per cent, while the T20 group saw an average increase of two per cent, from RM15,867 in 2022 to RM16,517 in 2024.
“These increases reflect four main sources: salary income, self-employment, property and investment, and current transfers,” she said.
Hanifah Hajar made the remarks in response to a supplementary question from Datuk Dr Richard Rapu (GPS-Betong) regarding the current household income thresholds used by the government to determine socio-economic categories such as B40, M40 and T20. – BERNAMA
