The T20, M40 And B40 Income Classifications in Malaysia

Malaysians are categorised into three different income groups: Top 20% (T20), Middle 40% (M40), and Bottom 40% (B40). Over the years, the bar for each group’s income level has increased and this is one of the indicators of economic growth. Here’s the latest definition for T20, M40 and B40 based on the findings from the Department of Statistics Malaysia in October 2017.

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.

To recap, the Department of Statistics Malaysia has released a report named Household Income And Basic Amenities Survey 2016. In the report, it stated that the median household income for T20, M40 and B40 has shown a compound annual growth rate (CAGR) of more than 6%.

On top of that, Malaysia’s household median monthly income crossed the RM5,000 mark for the first time last year, with M40 households registering the highest growth in median income, according to the Department.

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