Government to replace B40, M40, T20 classification with a net disposable income approach

The Malaysian government will soon replace the B40, M40, and T20 income classifications with a system based on net disposable income which reflects earnings after taxes, deductions, and essential expenses. Economy Minister Rafizi Ramli says the move is to improve subsidy targeting, particularly for items like RON95 fuel. The change addresses flaws in the outdated classification system, which critics, such as Khazanah Research Institute, argue misrepresents the middle class. By utilising advanced data systems like PADU, the government plans to implement a more precise, individual-based approach to income assessment.Read more: https://www.nst.com.my/business/economy/2025/01/1158618/government-replace-b40-m40-t20-classification-net-disposable-income ----------------------------------#NST #NSTTVvisit us at http://www.nst.com.my our Facebook http://www.facebook.com/nstonlinemore news at http://www.twitter.com/NST_Online Instagram http://www.instagram.com/nstonlineand also Tiktok https://www.tiktok.com/@nstonline