Malaysian Government Will Transition Out of T20, M40, B40 Classifications in 2024

There are certain things that the government is currently working on to differentiate themselves from the approach taken by the previous administration, especially when it comes to aid and subsidies.

According to a report by Astro Awani, the Minister of Economy Rafizi Ramli shared that the government must ensure that all infrastructures are available and conduct pilot tests, before deciding what level of income qualifies for assistance.

He added that the government is trying to minimise subsidy exemption errors that occur due to the classification of salary categories, but it needs to be carried out in stages.

“At the government’s level, on the part of the Economic Action Council (MTEN), for example, this week we have started discussing the simulation, who should get what, what approach will be taken, is there universal child support, will there be increased income value and so on,”

“Everything has been discussed. I think next year, you will see a shift away from blanket subsidies and the T20, B40, M40 classifications will slowly be phased out. We will launch one after the other, integrated social assistance based on household net spendable income,” he said.

Prior to this, Rafizi had informed that the government will begin to implement the transition of socioeconomic policy from the approached based on B40, M40 and T20 incomes to one based on household net spendable income, starting in January 2024.

Considering we’ve only known the B40, M40 and T20 classifications for the longest time, we can’t wait to see what the government has in store for us in 2024 with their new approach.

What do you think about this? Do feel free to share your thoughts in the comment section. 

Also read: The Ultra Rich Population in M’sia Increased by 9.4% in 2022, Despite Global Decline of 3.8%!