Recent discussions regarding the government’s possible adjustment of the RON95 fuel subsidy have attracted significant public attention, particularly on whether the T15 and T20 groups may lose certain subsidy benefits.
However, many people still misunderstand how income classifications are determined.
The government primarily refers to household monthly income, rather than individual salary.
What Are B40, M40, T20 and T15?
B40 Lower-Income Group
B40 refers to lower-income households and is generally considered the main target group for government assistance and subsidy programmes. Based on current expectations, this group is likely to continue receiving most subsidies and financial aid.
M40 Middle-Income Group
M40 represents middle-income households, including professionals, salaried employees, and small business owners. Certain subsidies or cash assistance mechanisms may be adjusted in the future.
T20 Higher-Income Group
T20 refers to higher-income households. As the government moves towards a targeted subsidy approach, this group may potentially experience reductions or removal of certain subsidies.
T15 Upper Higher-Income Group
T15 refers to the higher-earning segment within the T20 category. Based on current discussions, this group is considered one of the most likely to be affected first by potential RON95 subsidy adjustments.
No Final Decision Has Been Announced Yet
As of now, the government has not officially confirmed the final implementation details, including:
- Which income groups will be affected
- How household income will be calculated
- Whether M40 households will be included
- How eligibility and verification will be conducted
Therefore, all current discussions remain subject to official government announcements and policy updates.
The Bigger Debate Goes Beyond Subsidies
Beyond the issue of subsidy removal, more Malaysians are now discussing a broader and more realistic concern:
In today’s rising cost-of-living environment, can a household earning RM13,000 to RM14,000 per month still truly be considered “high income”?
With increasing expenses such as housing loans, education costs, medical expenses, and daily living costs, many families are beginning to rethink what “high income” actually means in today’s economy.
Further details on the government’s targeted subsidy policy are expected to be announced in the future. The public is encouraged to stay updated through official announcements and verified sources.
**Data Updated on 14.05.2026
(201706002678 & AF 002133)