Malaysia’s M40 households spend almost 70 per cent of income on essentials
The 2024 household survey placed the group’s monthly gross income between RM5,860 and RM12,679, with an average of RM8,744.
Basic necessities absorb almost 70 per cent of income among Malaysia’s M40 households, Deputy Economy Minister Datuk Mohd Shahar Abdullah told the Dewan Rakyat, citing Statistics Department figures.
Food accounted for 34.1 per cent of their income, while 22.7 per cent was spent on housing and utilities and 10.6 per cent on transport. Shahar said education and medical costs left households with only a small amount at month-end, describing the situation as a squeeze on the middle class.
He said the 2024 Household Income Survey defined M40 as income deciles D5 to D8. Its monthly gross income range was RM5,860–RM12,679, compared with RM5,250–RM11,819 in 2022. Average monthly gross income for the group was RM8,744.
The thresholds are updated using the Household Income and Expenditure Survey, which takes place twice in each Malaysia Plan period, Shahar said. Another survey is scheduled for 2027, and its findings are due for publication the following year.
