Uzir said the classifications are based on detailed survey data capturing income distribution across different population segments.
In justifying the methodology used to determine the classifications, he said the framework derives from regularly conducted household income surveys, which map income distribution and establish percentile rankings of households.
He said household income is assessed in context, taking into account differing financial obligations across households.
“The key measure is to look at probability and the surrounding circumstances, particularly the commitment characteristics of household income or net disposable income,” he said at a press conference here today.
Based on the latest thresholds, households earning less than RM5,860 a month fall under the B40 category, while those earning between RM5,860 to RM12,679 are considered M40.
Households earning more than RM12,680 are categorised as T20.
The classifications have come under renewed scrutiny following growing debate over whether the long-standing B40, M40 and T20 categories reflect Malaysia’s economic realities.
The debate has also intensified amid discussions on targeted fuel subsidies.
On Sunday, Prime Minister Anwar Ibrahim was reported as saying the government would finalise a proposal to review petrol subsidies for high-income earners, subject to further study.
Umno secretary-general Asyraf Wajdi Dusuki urged the government to exercise caution in implementing targeted petrol subsidies, saying gross household income alone is no longer a sufficient indicator of a family’s actual financial capacity, particularly in major cities.
Earlier today, Indera Mahkota MP Saifuddin Abdullah said the reclassification of household income groups under the B40, M40, and T20 categories, which have become a subject of debate in determining the distribution of subsidies, will be a key focus under the “new national consensus” vision.
Uzir said the statistics department’s surveys also highlight the percentile income estimates not only at the national level, but also at the state and district levels.
“Some households may earn a certain level of income, for example, at the city level, but their financial commitments vary depending on whether they live in urban or rural areas, as well as on factors such as the number of children and dependents they have,” he said.