B40, M40 & T20 – The New Figures In 2020

The B40,M40 & T20 distinction has always been a topic of discussion in Malaysia, especially when it comes to receiving aid during the Covid-19 pandemic.

While Malaysians are largely familiar with the classification and income threshold for B40,M40 & T20 households, the Statistics Department has released the latest figures that paint a more realistic picture.

Measuring your wealth

The B40,M40 & T20 exist to classify household income to the top 20%, middle 40% and bottom 40%.

Household Income and Basic Amenities Survey Report 2019.
(Credit: Department of Statistics Malaysia)

The figures are the total income for a household – which is calculated by adding up the income of every member of a household.

This can either be one single person or a group of people (related and unrelated) who live together and make common provisions for food and other living expenses.

Based on the Household Income and Basic Amenities Survey Report 2019, this includes income from paid employment, self-employment, property & investment as well as current transfer received.

The new categories

While the B40, M40 &T20 classification remain, the Statistics Department expanded this classification of households into 10 categories based on 10 percentiles.

Income threshold for T20, M40 & B40.
(Credit: TRP)

To be considered living in poverty, the household income is RM 2,208 per month.

Chief Statistician Datuk Seri Dr Mohd Uzir Mahidin said the Household Income and Basic Amenities Survey Report 2019 showed that B40 group comprised 2.91 million households, while the M40 group consisted of 2.91 million households and the T20 group 1.46 million households.

Based on these latest figures, the median household income is RM5,873 but almost 30.3% of Malaysian households earn below RM4,000 a month.

Household Income and Basic Amenities Survey Report 2019.
(Credit: Department of Statistics Malaysia)

Interestingly enough, despite having the smallest number, T20 households account for a whopping 46.8% of the national income – which highlights the worsening income inequality in Malaysia.

So if you’ve ever wondered why you’re feeling poor lately, now you know.

BY : KIRAT KAUR – TRP

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s