Review classification of B40, M40, and T20 citizens – Rafizi
Newly elected PKR deputy president Rafizi Ramli has called for a review of the economic classification system of citizens in Malaysia.
He said the review is needed as the government aims to implement targeted subsidies.
“Due to this, it is important for the public to play a role, and to give feedback to set a...
Newly elected PKR deputy president Rafizi Ramli has called for a review of the economic classification system of citizens in Malaysia.
He said the review is needed as the government aims to implement targeted subsidies.
“Due to this, it is important for the public to play a role, and to give feedback to set a benchmark for receiving subsidies in the fairest way possible.
“The current benchmark follows the classification of monthly household income, which is B40 (the bottom 40 percent of people with lower monthly household income), M40 (40 percent middle income earners), and T20 (the top 20 percent with the highest income).
“This method was introduced during the time Najib Abdul Razak was the prime minister, and was a benchmark used when enacting new economic policies,” Rafizi (above) said in a statement today.
This came after Finance Minister Tengku Zafrul Abdul Aziz stated that the government would be looking to speed up the coordination of subsidies to reduce the allocation for it.
“His (Zafrul) statement shows the consistency of the government’s objective to implement targeted subsidies,” Rafizi added.
According to the most recent Household Income Survey in 2019, B40 households only get 16 percent of the country’s income, with the M40 getting 37.2 percent, and the T20 receiving 46.8 percent.
Rafizi said despite the simplicity of applying the classification when handing out subsidies, there are several weaknesses to it.
“The classification is based purely on income and does not account for other factors such as cost of living when determining the economic level of a family.
“The cost of living of a person should be included in a total household income,” he added.
Get rakyat’s input
The former Pandan MP also stated that the income limit should not be used as a reflection of a family’s economic struggles.
“The income limit, which is determined purely by statistics, should not be used as a measuring tool for situations involving families and their economic struggles.
“On the other hand, it increases the unfairness of the distribution of income that is occurring,” Rafizi explained.
He called on Zafrul to explain whether the same approach (using B40, M40 and T20 classification) would be used when implementing targeted subsidies.
“The decision to set a proper criterion for receiving subsidies is a national decision that should be made and has to be presented and dissected for the rakyat to approve.
“It should not be the decision of a few officials in a meeting room,” he added.
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