Malaysia is reviewing how to define target groups for aid, including using disposable income, as median incomes for B40 and M40 groups rise
KUALA LUMPUR: The government is reviewing more suitable methods to identify target groups for assistance, including approaches based on disposable income.
Deputy Minister of Economy Datuk Hanifah Hajar Taib said the process requires time and careful study to ensure effectiveness and accuracy.
She noted the government currently maintains income classifications such as B40, M40 and T20.
“However, under the 13th Malaysia Plan, the determination of target groups for social assistance and subsidies will be improved,” she told the Dewan Rakyat.
Hanifah Hajar was responding to a question on progress in using disposable income to replace gross income measures for government aid.
She explained current aid is generally based on the poverty line income threshold, which considers household basic needs.
The median income of the B40 group rose by an average of 5.2% to RM3,815 in 2024, up from RM3,440 in 2022.
The M40 group’s median income also increased from RM7,694 in 2022 to RM8,999 in 2024, an average rise of 5.6%.
The T20 group saw an average increase of 2%, from RM15,867 in 2022 to RM16,517 in 2024.
Hanifah Hajar said these increases reflect four main sources: salary income, self-employment, property and investment, and current transfers.
She was responding to a supplementary question on the current household income thresholds used to determine socio-economic categories. – Bernama
