SHAH ALAM – The classification of income groups such as the top 20 per cent (T20) and middle 40 per cent (M40) must be interpreted carefully, taking into account the real cost of living and financial responsibilities faced by each household.
Majlis Amanah Rakyat (Mara) chairman Datuk Dr Asyraf Wajdi Dusuki said a household income of RM13,000 does not necessarily mean a family is financially comfortable – especially for those living in major cities with many children still in school or higher education.
He noted that some families technically classified as T20 may, in reality, fall into the M40 or even lower-income (B40) category once monthly commitments are taken into account.
“Be cautious when interpreting T20 or M40 categories. A household earning RM13,000 and living in a city like Kuala Lumpur with five children – some in school and others in university – could fall into the M40 or even B40 group.
“Mara considers all these factors before approving financing,” he said in a Facebook post on Tuesday.
Asyraf also gave the example of a married couple, both working as teachers and earning about RM6,500 each per month.
“When combined, their household income becomes RM13,000. Living in major cities, with three children in university or college and another three still in school – just imagine their expenses,” he added.