b40, m40, t20


What is the B40, M40, T20 Group in Malaysia?

In Malaysia today, there are three different income groups. Top 20% ( T20) Middle 40% and Bottom 40% (B40). Throughout the years, the level of income for every group has increased and its also signs of economic growth. The latest definition of T20, M40 and B40 are based on the Department of Statistics in Malaysia ( DoSM) in October 2017.

The T20 is defined as the class of citizens whom have a median household income of at least RM13,148 while the M40 and the B40 groups median household are those whom have a median household income of RM 6,725 and RM3,000 respectively, according to the Household  Income and Basic Amenity Survey 2019 research findings from DoSM. In the report, it stated that median household income for T20, M40 and B40 showing compound annual growth rate of ( CAGR) of more than 6%.

On top of that, the Malaysian household median monthly income is now above RM5,000 for the very first time in 2016, with M40 households registering the greatest growth in median income according to the Department.

New Median Income of T20, M40 and B40

Eventhough the income levels of each group improved significantly over the last few years, there are more worrying factors that we should take into account such as the rising cost of living due to inflation and slower wage group. and the falling value of Malaysian Ringgit.

The average monthly income of employees, based on the 2016 Salaries and Wages Survey Report by Department of Statistics, increased 6.5% to RM 2,643. In 2015, it rose to 5.4% to RM2,312.


Median income for a household in different states in Malaysia
State Median Income 2016 (RM) Median Income 2014 (RM)
W.P. Kuala Lumpur 9,073 7,620
W.P.Putrajaya 8,275 7,512
Selangor 7,225 6,214
W.P. Labuan 5,928 5,684
Johor 5,652 5,197
Melaka 5,588 5,029
Pulau Pinang 5,409 4,702
Terengganu 4,694 3,777
Negeri Sembilan 4,579 4,128
Perlis 4,204 3,500
Sarawak 4,163 3,778
Sabah 4,110 3,745
Perak 4,006 3,451
Pahang 3,979 3,389
Kedah 3,811 3,451
Kelantan 3,079 2,716

Source: comparehero

Pulau Pinang’s median income level is being placed in the middle among its peers despite being the second highest performing state in the country with GDP per capita of RM47,332 after Kuala Lumpur of 101,420.

Apart from Kuala Lumpur, Selangor and Putrajaya; Pulau Pinang ( Penang) and its remaining states median income level did not exceed the median income level for the M40 group.

Now that you have a clearer picture here about the median income household from different states and districts, you should find out if your financial position is better or worse than the other states around Malaysia and look for other opportunities around states with higher median household income and start earning higher.

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