T20 Classification Does Not Reflect Malaysia’s True Economic Reality, Says Minister
KUALA LUMPUR: Akmal Nasrullah Mohd Nasir said income classifications such as T20 no longer accurately reflect the true economic reality faced by Malaysians because household financial conditions are influenced by multiple factors beyond income alone.
According to the Economy Minister, the government does not rely on overly rigid classifications such as T20, M40 or B40 when formulating subsidy and assistance policies.
He explained that a broader and more holistic approach is needed to understand the real financial situation of households, including living costs, basic commitments and daily expenses.
“The Economy Ministry avoids using rigid classifications such as T20 because household income alone does not accurately reflect the actual economic reality faced by society.
“From the ministry’s perspective, it is more relevant to examine the overall financial condition of individuals, including essential expenditures and other related factors,” he told reporters in Kuala Lumpur today.
Akmal Nasrullah Mohd Nasir said subsidy rationalisation remains part of the government’s broader economic restructuring agenda aimed at ensuring assistance is distributed more effectively to groups genuinely in need.
According to him, the matter continues to be evaluated through long-term national planning initiatives including the Rancangan Malaysia Ke-13 (RMK13), as well as short-term measures introduced to address current economic challenges.
He said the government aims to build a more sustainable and resilient economy through appropriate reform initiatives.
“From the perspective of the Economy Ministry, what we are trying to achieve through RMK13 and other policies is to restructure the economy towards a stronger and more sustainable future,” he said.
Commenting further on targeted subsidies, he said discussions are constantly being held to ensure government assistance programmes genuinely reach the intended recipients.
However, he acknowledged that one of the main challenges remains determining the most suitable criteria and mechanisms for identifying those truly eligible for assistance.
“Discussions on targeted subsidies are ongoing because we want government aid and programmes to reach the right groups.
“The main challenge is determining the most appropriate limits and criteria to be used,” he said.
He added that the government needs to consider multiple aspects of household economics before implementing subsidy-related policies to ensure a fairer and more effective approach.
-wilayah.com.my
