KUALA LUMPUR – The government is reviewing more suitable disaggregation methods to identify target groups for aid, including approaches based on disposable income, said Deputy Economy Minister Datuk Hanifah Hajar Taib.
She said that although income classifications such as B40, M40 and T20 remain in use, there is a need to improve how the government determines eligibility for social assistance under the 13th Malaysia Plan.
Responding in the Dewan Rakyat to Che Zulkifly Jusoh (PN-Besut), who asked whether disposable income would replace gross income for classifying aid recipients, Hanifah said current assistance still relies on the poverty line income (PLI) threshold.
“The PLI considers household basic needs, including food and non-food items such as health and education,” she said.
Hanifah also highlighted that median incomes have risen across all major household groups.
“The B40 median income rose by an average of 5.2% to RM3,815 in 2024, from RM3,440 in 2022.
“The M40 median income also increased from RM7,694 in 2022 to RM8,999 in 2024, an average rise of 5.6%, while the T20 group saw an average increase of 2%, 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 when replying to a supplementary question from Richard Rapu @ Aman Begri (GPS-Betong) on the income thresholds used to define socio-economic groups. – December 3, 2025