A household income that places a family among the top earners in one state may still be considered low income in another, highlighting Malaysia’s wide regional income gap.
Reported by Ekonomi Rakyat MY, data from the Department of Statistics Malaysia (DOSM) shows that the income thresholds used to classify households into the B40, M40 and T20 groups differ significantly from state to state.
T20 in Kelantan starts at a household income of RM7,000
In Kelantan, the T20 category begins at a monthly household income of around RM7,000. In contrast, Kuala Lumpur applies much higher benchmarks, with B40 defined as households earning below RM9,630 a month, while T20 refers to those earning more than RM17,000.
This means a household earning RM8,000 per month would already be classified as T20 in Kelantan. However, the same income level in Kuala Lumpur would still place the household in the B40 group.
The disparity reflects structural differences in wages and income across regions.
More developed areas such as Kuala Lumpur, Selangor and Putrajaya generally record higher salary levels, which in turn raise average household incomes and push classification thresholds upward.
On the other hand, less developed states like Kelantan, Kedah and Sabah continue to rely heavily on primary sectors such as agriculture. These sectors typically offer lower wages, resulting in lower overall household income levels and significantly different income classifications compared to urban centres.
