KUALA LUMPUR, December 18 – Economy Minister Rafizi Ramli announced that the Cabinet will soon finalize the definition and classification of the T15 income group, which is set to replace the previous B40, M40, and T20 categories. Speaking in the Dewan Negara, Rafizi explained that the classification would shift from a gross income-based approach to a more inclusive net disposable income method.
This change is aimed at ensuring a fairer and more accurate measurement of households’ financial situations, which will be used for the targeted distribution of government aid and subsidies. Rafizi also discussed the concept of “reasonable basic living expenses” (PAKW), which will play a key role in determining eligibility for aid.
PAKW considers household expenditures necessary for a reasonable standard of living, accounting for both needs and wants, and is designed to reflect the varying cost of living across states. The minister emphasized that the new system would improve targeting and reduce errors in aid distribution, ensuring that the most deserving households benefit.
