By the year 2024, the Malaysian Government has launched the PADU initiative where it can help the government to know the classification and categories of society based on total household income.
In addition, it also facilitates the distribution of targeted subsidies to the B40 and Extreme Poor in this country.
Before that, what is meant by B40, M40, T20 and Hard Poor? Which category are you in?
Maybe we are quite familiar with this word on social media and news, it is intended to categorize every household based on the income of Malaysians every month.
In general, this is what the classification clearly means:
B40
– Known as the Bottom 40 is the lowest group of households.
- 40% of Malaysia's population consists of this group.
- Household income with a monthly average below RM4,850.
M40
– Known as the Middle 40 is the middle group of households.
- 40% of Malaysia's population consists of this group.
- Household income with an average monthly income between RM4,851 to RM10,970.
T20
– Known as the Top 20 is the highest group of households.
- 20% of Malaysia's population consists of this group.
- Household income with an average monthly income of RM10,971 and above.
The Hardy Poor on the other hand is the monthly household income below RM1,198 which previously decreased by 0.2% to 18,445 households compared to 0.4% in 2019 in Malaysia.
Based on the Household Income and Expenditure Report in 2022, it is stated that the income categories for B40, M40 and T20 are further broken down into several small groups.
B40 is divided into two groups namely:
– B1 : RM2,500 and below
– B2 : RM2,501 – RM3,170
– B3 : RM3,171 – RM3,970
– B4 RM3,971 – RM4,850
M40 is also broken down into four groups:
– M1 : RM4,851 – RM5,880
– M2 : RM5,881 – RM7100
– M3 : RM7,101 – RM8,700
– M4 : RM 8,701 – RM10,970
As for T20 income, it is divided into two namely:
– T1 : RM10,971 – RM15400
– T2 : RM15,041 and above
The poor are tough refers to individuals whose monthly household income is less than the Poverty Line Income (PGK). The poverty rate in the PGK currently used is RM2,208 per household and for the extreme poor RM1,169 per household.
The extreme poor can also be included in vulnerable groups consisting of women, the elderly, people with disabilities (OKU), the poor and the youth.
With this partnership, you can determine the household category according to the household's monthly income and make it easier for you to submit an application for aid announced by the government.
