Income classification | Definition | Details |
B40 |
Bottom 40% |
|
M40 |
Middle 40% |
|
T20 |
Top 20% |
|
In terms of earning power, the social classes in Malaysia are classified into three different income classifications – B40, M40, and T20. This article will discuss both household income Malaysia and Malaysia median income.

The Malaysian population is estimated to be around 32.7 million people. This is based on the Demographic Statistics First Quarter 2021 (Malaysia) that was released by the Department of Statistics Malaysia (DOSM). With so many people living in this country, how do we know if our assistance programmes are targeted to the right group? What about you, which income bracket are you at?
We hear it all the time – B40, M40, T20. However, who exactly are these people? While we are all categorised by income classification, it is also important to understand where we fall in these B40, M40, and T20 categories.

How is household income defined?
According to the DOSM, household income refers to total incomes received (accumulated) by members of households, both in cash or in kinds that occur repeatedly within the reference period (within a year, or more frequently) household income.
What is the average income in Malaysia
As of 2019, the average income in Malaysia is RM7,901.
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What is B40, M40, and T20?
B40, M40, and T20 Malaysia refer to the household income classification in Malaysia. B40 represents the Bottom 40%, M40 represents the middle 40%, whereas T20 represents the top 20% of Malaysian household income. Kindly take note that there’s no update yet for the B40 income range for the year 2023.
Median Income Malaysia / Household Income Malaysia
Below are the latest data for Malaysia median income and it’s based on DOSM 2020. As there’s still no updated data available, the below statistics can still be used as Malaysia’s household income 2022.
Group | Median Household Income (RM) | Average Household Income (RM) | Income Threshold (RM) |
B40 | B1 | 1,929 | 1,849 |
B2 | 2,786 | 2,803 | 2,501 – 3,170 |
B3 | 3,566 | 3,561 | 3,171 – 3,970 |
B4 | 4,387 | 4,395 | 3,970 – 4,850 |
M40 | M1 | 5,336 | 4,851 – 5,880 |
M2 | 6,421 | 6,477 | 5,881 – 7,100 |
M3 | 7,828 | 7,841 | 7,101 – 8,700 |
M4 | 9,695 | 9,730 | 8,701 – 10,970 |
T20 | T1 | 12,586 | 10,971 – 15,040 |
T2 | 19,781 | 24,293 | More than 15,041 |
Whether you are searching for ‘B40 Malaysia 2023’, ‘B40 salary range 2023’, or ‘M40 Malaysia’, the above represents the latest government data.
Discover properties for rentHow is B40 defined?
B40 is the Bottom 40% of the Malaysian household income. They earn less than RM4,850 per month. The COVID-19 pandemic also has pushed many Malaysians to lower-income categories due to income reduction and loss of employment. The B40 group is eligible for the Bantuan Sara Hidup (BSH) or Bantuan Prihatin Rakyat (BPR). There are also government housing schemes especially for B40 groups such as the Program Perumahan Rakyat (PPR) and Program Perumahan Rakyat Termiskin (PPRT) for the hardcore poor.
Group | Median Household Income (RM) | Average Household Income (RM) | Income Threshold (RM) |
B40 | B1 | 1,929 | Less than 2,500 |
B2 | 2,786 | 2,803 | 2,501 – 3,170 |
B3 | 3,566 | 3,561 | 3,171 – 3,970 |
B4 | 4,387 | 4,395 | 3,970 – 4,850 |
Again, if you are googling ‘B40 Malaysia 2023’ or ‘B40 salary range 2023’ the above figures are still valid.
How many B40 households are there in Malaysia?
Based on the Household Income and Basic Survey Amenities Report 2019, the B40 group in 2019 comprised 2.91 million households. In terms of the income distribution, the B40 only constituted only 16% of total household income. In terms of the income distribution, the B40 only constituted only 16% of total household income. Kindly note that while the population of this group could have increased, you can use the above figures for the B40 population in Malaysia 2023 as this is the latest survey that was published (July 2020).
What is considered middle class in Malaysia?
The middle class in Malaysia is the M40 or Middle 40% group. Based on the Household Income and Basic Amenities Survey 2019, the middle class in Malaysia earn between RM4,851 to RM10,970 per month. Also, the M40 group covered 37.2% of the total household income in 2019.
Group | Median Household Income (RM) | Average Household Income (RM) | Income Threshold (RM) |
M40 | M1 | 5,336 | 4,851 – 5,880 |
M2 | 6,421 | 6,477 | 5,881 – 7,100 |
M3 | 7,828 | 7,841 | 7,101 – 8,700 |
M4 | 9,695 | 9,730 | 8,701 – 10,970 |
Source: Department of Statistics Malaysia (DOSM), 2020.
Beginning 2024, the M40 will be able to enjoy an income tax rate cut of up to 2% – Individuals’ income tax rate will be reduced by 2 percentage points for the chargeable income band between RM35,000 to RM100,000. First-time homebuyers who purchase a home valued at RM500,000 and below will also enjoy a full stamp duty exemption until the end of 2025.
Discover properties for saleHow can you tell the difference between M40 and B40?
The B40 and M40 groups differ in income tier, aids, and assistance that they are eligible to apply for.
Who is considered T20 in Malaysia?
The T20 group is the Top 20% of Malaysian household income. They are considered to be high-income earners, exceeding RM10,971 a month. According to Household Income and Basic Amenities Survey 2019, there were 1.49 million households in the T20 Malaysia group and they constituted 46.8% of the total household income.
Group | Median Household Income (RM) | Average Household Income (RM) | Income Threshold (RM) |
T20 | T1 | 12,586 | 10,971 – 15,040 |
T2 | 19,781 | 24,293 | More than 15,041 |
How much money do you need to live comfortably in Malaysia?
According to The Living Wage: Beyond Making Ends Meet that was published in 2018 by Bank Negara Malaysia (BNM) Monetary Policy Department, the provisional estimates of a living wage in Kuala Lumpur range between RM2,700 and RM6,500 per month. This provisional estimate was made by BNM using data from Household Expenditure Surveys 2014 and 2016, the Ministry of Domestic Trade, Co-operatives and Consumerism, and the National Property Information Centre (NAPIC). An individual should be earning a living wage of at least RM2,700 per month, couples without children must be earning RM4,500. In contrast, couples with two children should be earning no less than RM6,500 to live comfortably in Malaysia.
As Malaysia is likely to transition to a high-income nation status between 2024 and 2028, it is hoped that all segments of its citizens’ well-being aren’t neglected. Perhaps, a living wage that’s in tandem with the rise of living costs.
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