Government to revise income group classification to give out targeted aid

KUALA LUMPUR - The Economy Ministry is reviewing all income group classifications to give out targeted assistance in the 12th Malaysia Plan (RMK12).

Its minister Rafizi Ramli said the review will take consideration into the changes in income and expenditure, cost of living, purchasing power, demographics and the location of household.

He said the new household income classifications will strengthen policy formulation and service delivery.

"Going forward the government will move out of subsidising as a whole from the approach based on B40, M40 and T20 income towards a more streamlined approach.

"This would take into account disposable income matched with the current cost of living based on the demographics of family members and locality.

"Currently the Economy Ministry through the Malaysian Statistics Department is developing the appropriate data infrastructure to assist in the formulation of evidence-based policies," he said at the Minister's Question Time (MQT) at the Dewan Rakyat on Tuesday,

He was replying to a question from Datuk Seri Jalauddin Alias (BN-Jelebu) who ask on the breakdown of the current Malaysian income line and measures the government is taking to aid the M40 group.

Rafizi said the Malaysian Statistics Department is finalising the 2022 income findings, Expenditure and Basic Facilities Survey involving 92,000 households starting from January 2022 to December 2022.

The income limit for each group will be updated once the study which is expected to be published in mid-2023.