KUALA LUMPUR: The government will continue using the B40, M40 and T20 income classifications for statistical analysis and social assistance programmes.
Economy Minister Datuk Seri Akmal Nasrullah Mohd Nasir said eligibility for social assistance and poverty-related programmes remains based on the national Poverty Line Income (PLI), which was set at RM2,705 in 2024.
However, he said the government is exploring a more inclusive and equitable framework to identify aid recipients under the 13th Malaysia Plan (13MP) for 2026-2030.
"This is intended to complement the current income-based classification, which does not fully capture the financial burden faced by households due to differences in locality, demographics, spending patterns and cost of living," he said in a written parliamentary reply yesterday.
He was responding to Datuk Dr Ku Abdul Rahman Ku Ismail (PN–Kubang Pasu) regarding a new socio-economic classification system to replace the B40, M40 and T20 categories.
Akmal said one of the approaches being examined is the Net Disposable Income (NDI) framework.
He said the NDI approach goes beyond gross income by taking into account mandatory deductions such as the Employees Provident Fund, Social Security Organisation contributions, income tax and zakat.
"The framework would also incorporate the Basic Expenditure for Decent Living, which considers locality, demographics, household spending patterns and the prices of goods and services.
Akmal said PAKW currently serves as a localised financial literacy guide to help households plan their spending according to their needs and circumstances.
On the implementation timeline, he said any review of the income classification system would require further study and comprehensive household data, as outlined under the 13MP, to ensure its effectiveness. - NST
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