The government’s plan to gradually phase out the classification of B40, M40, and T20 categories starting next year has been announced by Minister of Economy, Rafizi Ramli. The transition from comprehensive subsidies to a new approach aims to minimize errors and ensure effective implementation.
Government phasing out B40, M40 and T20 classifications
The government will assess existing infrastructure and conduct pilot tests to determine the appropriate income threshold for providing aid. The process will involve discussions at the Economic Action Council (MTEN) level to simulate different scenarios and determine the approach for distributing assistance.
Collaboration between various agencies through the Main Data Repository (PADU) will play a crucial role in implementing social assistance programs based on net disposable household income. This shift in socioeconomic policy is scheduled to commence in January 2024, with the aim of improving the targeting and effectiveness of government subsidies.
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