KUALA LUMPUR: The government plans to phase out the B40, M40, and T20 income classifications next year, said Economy Minister Rafizi Ramli.
He said instead of the current classification based on fixed income, the focus would shift towards net household disposable income.
"Several initiatives and policies implemented by the current government differ from the previous administration's approach, especially in matters concerning aid or subsidies.
"The government needs to ensure that all necessary infrastructure is in place and conduct pilot tests before determining the income threshold for eligibility," he said at the People's Income Initiative (IPR) vending machine pilot project at Universiti Malaya Medical Centre on Wednesday.
He said the government aimed to minimise errors in subsidy exemptions caused by salary category classifications, but emphasised the need to transition in stages.
"At the level of the National Economic Action Council, we have initiated discussions on the types of aid to be provided under the new targeted subsidies approach.
"We will gradually implement integrated social assistance programmes based on household net spendable income.
"This can be achieved through the collaboration of various agencies, ensuring the effectiveness of the government's subsidy programme," he added.