KUALA LUMPUR, January 14 – Economy Minister Rafizi Ramli has announced that Malaysia will phase out its current B40, M40, and T20 income classifications, transitioning instead to a disposable income metric for subsidy allocation. This shift, aimed at ensuring subsidies reach those most in need, is expected to be finalized within weeks.
Under the new system, approximately 85% of households will benefit from targeted subsidies for RON95 petrol. The government plans to use the comprehensive Padu database, which includes data on 21 million Malaysians, to identify eligible recipients. Rafizi emphasized that the move will reduce financial aid leakage and optimize government spending.
In a related development, Rafizi also shared plans to lease additional rolling stocks to enhance train capacity along the Padang Besar–Johor Bahru route by 50% by 2030. This initiative aligns with efforts to support the Johor-Singapore Special Economic Zone and improve transportation infrastructure nationwide.
