Marketing Insights

High Spenders in Malaysia

To understand where the high spenders in Malaysia are, you must first know a few things. For starters, there are 3 categories of income groups as specified by the Household Income and Basic Amenities survey carried out by the Department of Statistics.

Income Group Categories

Malaysia has a healthy mix of people in various income groups which is calculated based on the household income. However, when it comes to the geographical setup, the division of income is more erratic with some states having a large group of high income and vice versa. Generally, Malaysians are in either one of the following groups:

  • T20 – Top 20%
  • M40 – Middle 40%
  • B40 – Bottom 40%

The suffice to say, each state has its own makeup of the 3 categories mentioned with some having more or less of each.

High spenders in major cities

Naturally, the major cities in Malaysia like Kuala Lumpur, Johor Bahru and Georgetown will have the highest population of the T20 group. Based on the statistics of 2016, the average size in a household in Malaysia is 4.1 persons. In Kuala Lumpur which has the most high income suburbs, most of the T20 households reside around areas such as Ampang, Bangsar, Damansara and Subang, among others. For reference, the Median income for the groups are as follow:

  • B40 – RM3,000
  • M40 – RM6,275
  • T20 – RM13,148

Which state is the richest?

In terms of state, the people in Kuala Lumpur remains the richest with the most T20 people. The Median income based on state is as below:

  • Kuala Lumpur – RM9,073
  • Putrajaya – RM8,275
  • Selangor – RM7,225
  • Labuan – RM5,928
  • Johor – RM5,652
  • Malacca – RM5,588
  • Penang – RM5,409
  • Terengganu – RM4,694
  • Negeri Sembilan – RM4,579
  • Perlis – RM4,204
  • Sarawak – RM4,163
  • Sabah – RM4,110
  • Perak – RM4,006
  • Pahang – RM3,979
  • Kedah – RM3,881
  • Kelantan – RM3,079

Based on the list above, it must be noted that many states’ median income does not match that of the B40.

Sepang is the richest district in Malaysia

While the states have its own median income, if broken down into districts, Sepang come out tops. This is because of the disparity between the high- and low-income groups. The latest records of median income among districts are:

  1. Sepang - RM8,174
  2. Petaling Jaya - RM7,904
  3. Gombak - RM7,903
  4. Hulu Langat - RM7,851
  5. Klang - RM6,724
  6. Johor Bahru - RM6,518
  7. Kulai - RM6,114
  8. Terengganu - RM4,694
  9. Bintulu - RM5,966
  10. Timur Laut (Pulau Pinang) - RM5,964
  11. Melaka Tengah- RM 5,877
  12. Barat Daya (Pulau Pinang) - RM 5,844
  13. Kota Kinabalu - RM5,683
  14. Batu Pahat - RM5,516
  15. Hulu Selangor - RM5,421
  16. Muar- RM 5,371
  17. Kemaman - RM5,355
  18. Kuala Langat - RM5,293
  19. Penampang - RM5,211
  20. Miri - RM 5,208
  21. Sungai Petani Tengah - RM5,172