KUALA LUMPUR: Almost 70 per cent of M40 household income is spent on basic necessities, the Dewan Rakyat was told.
Deputy Economy Minister Datuk Mohd Shahar Abdullah said Statistics Department data showed that 34.1 per cent of M40 income went towards food, followed by housing and utilities at 22.7 per cent and transport at 10.6 per cent.
"After deducting education and medical expenses, the balance of income at the end of the month is very small.
"This is the 'middle-class squeeze' phenomenon," he said.
Shahar said the 2024 Household Income Survey put the M40 group, comprising income deciles D5 to D8, at a monthly gross income of between RM5,860 and RM12,679, with an average of RM8,744.
He said the income thresholds were revised based on the Household Income and Expenditure Survey, which is conducted twice during each Malaysia Plan period.
The M40 income range rose from RM5,250–RM11,819 in 2022 to RM5,860–RM12,679 in 2024, he said.
The next survey is scheduled for 2027, with the results to be published the following year.
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