The T20 group is defined with the median household income of at least RM13,148 while the M40 and B40 groups’ median household income have moved their bars up to RM6,275 and RM3,000 respectively, according to the Household Income And Basic Amenities Survey 2019 research findings from DoSM. 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 in 2016, with M40 households registering the highest growth in median income, according to the Department.
Keep in mind that the income group definitions are not fixed. The names, B40, M40, and T20, represent percentages of the countries’ population of Bottom 40%, Middle 40%, and Top 20% respectively. The values may increase or decrease year-to-year, depending on the country’s GDP, which is why the median household income is used as the determinant instead.