Malaysia

Abolish B40, M40, T20 classification for clearer poverty line: experts

Net income, spending power need to be considered, one says

Updated 3 years ago · Published on 16 Jun 2023 10:42PM

Abolish B40, M40, T20 classification for clearer poverty line: experts
Economy Minister Rafizi Ramli had on Wednesday stressed that the government is trying to minimise errors in subsidy exemptions that could occur because of salary category classification, and everyone would see a transition away from blanket subsidies, while the B40, M40 and T20 classifications would be done away with in stages by 2024. – SAIRIEN NAFIS/The Vibes file pic, June 16, 2023

KUALA LUMPUR – The unity government would be able to channel aid in the future to those who really qualify if the current B40, M40 and T20 classifications were done away with in stages by next year, experts said.

Universiti Teknologi Mara Sabah Management and Business Faculty senior lecturer Jain Yassin said the current method used by the government to determine the poverty line is based on the total income of a household without looking at commitments borne by Malaysians.

Various factors, including net income and spending power, need to be considered when determining the poverty line as those with high income might not necessarily have high spending power.

“For instance, if an individual is categorised as M40, he could actually be in B40 if their spending power or net income is low after considering their commitments, such as home and car payments.

“Similarly, for the B40 group. There are those in rural areas who have more than one business to supplement their income while those working in the government for instance, would find it hard to have their own business.

“So, it’s wrong to say that all B40 qualify and M40 don’t qualify for government aid...it’s a wrong perception. That needs to change to be just to everyone,” he said.

Economy Minister Rafizi Ramli had on Wednesday stressed that the government is trying to minimise errors in subsidy exemptions that could occur because of salary category classification, and everyone would see a transition away from blanket subsidies, while the B40, M40 and T20 classifications would be done away with in stages by 2024.

No cookie-cutter approach

Meanwhile, Universiti Malaysia Sabah social science and humanities faculty, sociology and social anthropology programme lecturer, Pauline Yong said whatever approach the government intends to use to determine who qualifies for aid and subsidy, it should not be one-size-fits-all.

“If we look at previous poverty eradication efforts, some succeed while others did not...why?

“(It’s) because our policies were too much of ‘one size fits all’ while people don’t become poor because of one particular issue,” she said, adding that she hoped the government would collect input from everyone when crafting its strategies and policies against poverty. – Bernama, June 16, 2023

Related News

Malaysia / 3w

PH offers more comprehensive manifesto, benefits all groups

Opinion / 2mth

Should petrol subsidies be removed and the savings redistributed to the poor?

Malaysia / 2mth

Income of RM7,000 in Kelantan, Kedah makes one part of T20 group

Sports & Fitness / 4mth

If this is true … then Malaysian cricket is entering dangerous territory!

Malaysia / 5mth

Madani government – Focus on difficult, but essential economic reforms

Malaysia / 6mth

MOT mulls mandatory defensive driving courses for high-risk drivers

Spotlight

Malaysia

Najib raises objections to 80% of ex-1MDB CEO’s witness statement over hearsay

Malaysia

Tun Dr Mahathir, Siti Hasmah create ASEAN record

By Alfian Z.M. Tahir

Malaysia

Nanta Linggi to leave Parliament after five terms, may contest new Sarawak state seat

World

Typhoon Dolphin’s remnants swamp Beijing as China braces for more extreme rainfall

Malaysia

Anwar expected to leave hospital today after successful treatment

Malaysia

Husband and wife face death penalty for drug trafficking

Malaysia

Former Subang MP, Wong Chen joins Bersama

Malaysia

Malaysian dies while transiting in Bangkok to Japan (video)

You may be interested

Malaysia

PN walkout over Tabung Haji debate a political misstep, says analyst

By Alfian Z.M. Tahir

Malaysia

Immigration immediately stops issuing passports with validity periods exceeding 10 years

By Alfian Z.M. Tahir

Malaysia

Selangor yet to finalise funding for RM3 billion Shah Alam Stadium redevelopment

By Alfian Z.M. Tahir

Malaysia

Muhyiddin urges end to political appointments in Tabung Haji leadership

Malaysia

Malaysian dies while transiting in Bangkok to Japan (video)

Malaysia

Anwar to meet Brunei Sultan next week after successful medical procedure

Malaysia

EC: No by-election for Subang parliamentary seat

Malaysia

Grandmother charged with murdering step-granddaughter