Is B40-M40-T20 Classification Obsolete? Research Agency Weighs In
A recent study by Khazanah Research Institute (KRI) has sparked debate on the traditional B40-M40-T20 classification system, suggesting that it may no longer be an effective way to categorize income groups. The research proposes an alternative division based on the bottom 20% (B20), middle 50% (M50), and top 30% (T30) categories. This new approach aims to provide a more accurate representation of the economic landscape, taking into account the changing demographics and socioeconomic trends in Malaysia. With the rising income inequality and shifting economic dynamics, it is essential to reassess the existing classification system to ensure that policies and initiatives are targeted effectively. The study's findings have significant implications for policymakers, economists, and researchers, highlighting the need for a more nuanced understanding of income distribution and socioeconomic disparities. Key terms such as income inequality, socioeconomic trends, and economic dynamics are crucial in understanding the complexities of the issue. By reassessing the B40-M40-T20 classification, Malaysia can work towards creating a more equitable and sustainable economy.