Income classification in Malaysia are classified into 3 groups – Bottom 40% (B40), Medium 40% (M40), and Top 20% (T20). This is based on the Department of Statistics’ (DOSM) Household Income and Basic Amenities (HIS/BA) survey of 2019.
How Do B40, M40, and T20 Being Classified?
Bear in mind that the income group definitions are not fixed. The names (B40, M40, and T20), it represent the percentages of the country’s population of Bottom 40%, Middle 40%, and Top 20% respectively. The values depending on the country's GDP, it may go up or go down year-to-year, that's why the median household income is used as the determinant instead.
Income by State
Here’s the median income level for each state, therefore, you can check if you and your family are above or below the median standard.
Median Household Income By States in Malaysia
Income differences between each state are quite significant based on the report above. Although the income levels for each group has improved over the past 3 years, but should not ignore the escalating costs of living resulting from inflation and slower wage growth - Malaysia to start RM1,500 minimum wage from 1st May 2022.
Now you know about the median income in different states in Malaysia, you should find out if your financial position is positive or negative than the average Malaysians. Making financial decisions are not easy, so remember to find out the best way or investments to generate more income.
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