Income Group Classification In Malaysia

The number shifts based on gdp of the country every year.

Income group classification in malaysia. While attention has been cast on the bottom 40 or the group known as b40 as they make up the lowest earners the middle class the middle 40 or m40 shouldn t be forgotten either. The latest definition of t20 m40 and b40 are based on the department of statistics in malaysia dosm in october 2017. Analysts often suggest looking at the mean average or median middle value of the group to give you a better idea of where you stand in the income classification. Infographic by department of statistics malaysia.

The m40 group recorded the highest annual growth rate of 6 9 per cent from rm5 662 in 2014 to rm6 502 in 2016. To be in the t20 group a household needs to earn at least rm13 148 while m40 and b40 groups have moved their bars up to rm6 275 and rm3 000 respectively. Top 20 t20 middle 40 and bottom 40 b40. In malaysia today there are three different income groups.

The b40 m40 t20 exist to classify household income to the top 20 middle 40 and bottom 40. In terms of growth median income in malaysia grew by 3 9 per cent per year in 2019 as compared to 6 6 per cent in 2016. Mean monthly household income by state malaysia 2014 and 2016. In 2019 mean income in malaysia was rm7 901 while malaysia s median income recorded at rm5 873.

The names b40 m40 and t20 represent percentages of the country s population of bottom 40 middle 40 and top 20 respectively. Throughout the years the level of income for every group has increased and its also signs of economic growth. Keep in mind that the income group definitions are not fixed. To recap the department of statistics malaysia has released a report named household income and basic amenities survey 2016.

While malaysians are largely familiar with the classification and income threshold for b40 m40 t20 households the statistics department has released the latest figures that paint a more realistic picture. Moreover mean income rose at 4 2 per cent in 2019. The income range for the classification isn t actually set in stone it s more of a guideline.