KUALA LUMPUR – The government aims to double the income of the bottom 40 per cent household income group (B40) by 2020 while expecting a spillover effect on the M40 group, says the Finance Ministry.
The Economic Report 2015/2016 defines the B40 group as comprising households with a monthly income of up to RM3,855, with those in the M40 (middle 40 per cent income) group earning between RM3,860 and RM8,319.
Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah said the government provides assistance primarily to minimum wage earners followed by the B40 and M40 target groups, as stated in the Budget 2016.
“The government intends to uplift the standard of living of the lower income earners and the higher income earners will follow suit as there will be a chain reaction.
“We (the government) want to raise the level of prosperity among Malaysians, as that is our focus.
“We are currently providing assistance to the B40 target group and will commence with the M40 target group this year,” he told reporters on his working visit to Perbadanan Nasional Bhd here today.
Husni said more incentives will be provided in future, with the bulk of the allocation for the newly-created M40 group in the form of tax incentives.
On moving up the income ladder, he said Malaysians should not be complacent but should continuously improve themselves.
“They should not entirely depend on the government, as the responsibility falls on their own shoulders,” Husni said, pointing out that the government provides training to enable Malaysians to increase their knowledge and skillÂ levels in order to uplift their standard of living.
Husni added the government is not focusing on vision 2020 alone, but also on what happens after 2020.- BERNAMA