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Household income Malaysia. How much do T20, M40 and B40 actually earn per month?

Household income Malaysia. How much do T20, M40 and B40 actually earn per month?

There has been report saying that some M40 households have dropped to the B40 category in terms of income because of the Covid-19 pandemic. Thus, it’s B50 instead of B40.

Let’s hope this is temporary and more B50 will be in M40 instead of the other way round. How much do the top 10% households in Malaysia earn every month? According to the latest numbers from the Rancangan Malaysia 12, the top 10% households in Malaysia should be earning an income which is higher than RM15,040 per month.

The M40 households earn an income between RM4,850 to RM10,960. The B40 households earn a monthly income of RM2,208 to RM4,850. Truth is, if they are staying in the Klang Valley, this income is hardly enough to pay for the cost of living. So, hopefully more could be done to assist them alleviate some of their financial burdens.

Image below shows the household income for Malaysian households.

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household income

Hardcore poor comprises 6% of the total households

The income earned by these households are above the minimum pay for Malaysia which is RM1,200 and this tells us that the current minimum pay is really very minimum. No one should continue to earn these minimum pay as it will cause financial hardships to these households. In fact, if the companies continue to earn profits, I do not see any reason for them to pay such a low salary to the employees they have no matter what they do in the company.

No property means continuous poverty

We must help the hardcore poor have a roof over their head. Else, they would be spending a huge portion of their salary on just accommodation and this will cause them to remain poor forever. This is why property ownership or even access to cheap housing must be the main strategy to help these poor households. Remember yeah, even if it’s just RM300 rental per month, paying this for 30 years will be a substantial amount and the money should belong to the households and not “given” to someone else.

Let’s hope the household income numbers would be higher in 2022 since 2021 is still very much affected by Covid-19 lockdowns.

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Header Photo by Tima Miroshnichenko from Pexels

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Charles Tan The Founder The Writer Kopiandproperty
Charles Tan

Charles is Founder of He writes from his investment experience for the the past 20 years in investments including property, stock, unit trust and more as well as readings and conversations with many property gurus in the industry. is an independent property blog which is not affiliated to any media company, property developer or even real estate agencies.


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