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Does T20, M40, B40 Classification Reflect Reality?

Dr Geoffrey Williams, Economist, Malaysia University of Science and Technology

15-Jun-23 15:00

Does T20, M40, B40 Classification Reflect Reality?

We’ve all probably come across the term T20, M40 and B40. We’ve probably said “T20” in reference to the rich. But does this classification system accurately reflect financial realities on the ground and the imagination of the masses? Does it help the government provide subsidies to the right groups? The short answer is, not quite.  

This is one of the reasons why Minister of Economy, Rafizi Ramli has announced the government’s intention to move away from the current classification system of household income towards ‘household net disposable income’. 

We discuss this with Dr Geoffrey Williams, Economist, Malaysia University of Science and Technology.

Produced by: Dashran Yohan

Presented by: Dashran Yohan


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Categories:  governmenteconomy

Tags:  income classificationt20household incomedisposable incometax the rich





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