Income Classification in Malaysia 2014 and 2016

Official data classifies Malaysians into three income groups:

·       Top 20% (T20);

·       Middle (M40); and

·       Bottom 40% (B40)

The median monthly household income is classified as follows:

Median Monthly Income By Household Group
Household Group	Median Income 2016 (RM)	Median Income 2014 (RM)	CAGR (%)
T20	13,148	11,610	6.2
M40	6,275	5,465	6.9
B40	3,000	2,629	6.6

The above does not account for inflation and/or slower wage growth. The median income level for each state is as follows:-

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

Penang is in the middle among its peers despite being second highest in terms of per capita income after Kuala Lumpur. The above data is useful for bankers, developers, retailers in mapping-out strategies for their products.

Reference:

1.         The T20, M40 and B40 income classifications in Malaysia, Ooi Chia Shen, 7 Nov 2018