KUALA LUMPUR: The government is reviewing a more refined way to identify target groups for government aid, including the possible use of disposable income as a fairer benchmark.
Deputy Economy Minister Datuk Hanifah Hajar Taib (pic) said the proposal requires further study before implementation, as any new method must be workable and effective.
“For now, most assistance is determined using the Poverty Line Income (PGK), which covers basic household needs such as food, non-food items, housing, healthcare and education.
“In general, income group classifications help the government shape social policies and deliver support to the intended groups.
“The method uses statistical modelling; this sorts households from lowest to highest income into equal-sized groups or based on their relative position within the income distribution,” she told the Dewan Rakyat yesterday.
Hanifah said aid distribution currently remains focused on the B40 group, with eligibility determined by gross household income.
She was responding to Besut MP Datuk Che Mohamad Zulkifly Jusoh who asked for an update on the government’s plan to shift from gross household income to disposable income as the basis for determining aid and subsidies.
To a supplementary question from Betong MP Datuk Dr Richard Rapu on the latest income thresholds used to categorise the B40, M40 and T20 groups, Hanifah said they were based on the Household Income and Expenditure Survey (HIES) 2024.
She said all three groups recorded income growth driven by wages, self-employment earnings, returns on assets and investments, as well as informal transfers.
“For B40 households, median income rose from RM3,440 in 2022 to RM3,815 in 2024, an annual average increase of 5.2%,” said Hanifah.
“The median income for the middle 40 climbed from RM7,694 in 2022 to RM8,599 in 2024, or 5.6% annually.
“As for the T20, median income increased from RM15,867 in 2022 to RM16,517 in 2024, reflecting a 2% annual rise.”
