Middle-class Malaysians spend nearly three quarters of income on basics
Deputy Economy Minister Datuk Mohd Shahar Abdullah told parliament that about 70% of M40 household earnings go to essential costs, leaving little left after other expenses.
During a session of the Dewan Rakyat, Deputy Economy Minister Datuk Mohd Shahar Abdullah highlighted that the M40 segment allocates almost 70% of its earnings to basic necessities such as food, housing, utilities and transport. He explained that once education and healthcare costs are deducted, the disposable income at month-end is very limited, a situation he described as the "middle-class squeeze." The 2024 Household Income Survey shows the M40 income bracket has been adjusted upward compared with the 2022 figures, and the average monthly gross income for this group is now higher.
The survey, conducted twice each Malaysia Plan, will be repeated in 2027 with findings to be released the year after. Shahar emphasized the pressure this places on middle-income families.
Why it matters
It reveals the financial strain on Malaysia's middle class, affecting consumer spending and social stability.
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