MARA chairman Datuk Dr Asyraf Wajdi Dusuki has cautioned against making broad assumptions about income groups such as the top 20 per cent (T20) and middle 40 per cent (M40), stressing that household earnings alone do not always reflect a family’s actual financial situation.
He said income classifications should be interpreted carefully by taking into account the rising cost of living, number of dependants and long-term financial commitments faced by families, particularly those living in major cities.
According to Asyraf Wajdi, a household income of RM13,000 may appear high on paper, but many families are still struggling to cope with expenses, especially if they have several children pursuing education.
“Be careful when interpreting T20 or M40 categories. A household income of RM13,000 in cities like Kuala Lumpur with five children still schooling or studying at university can fall into the M40 category, or even B40 after taking into account commitments,” he said in a Facebook post on Tuesday.
He added that MARA considers these realities before approving any form of financial assistance or education funding.
Asyraf Wajdi also shared the example of a married couple who both work as teachers and earn around RM6,500 each monthly.
“When combined, their household income becomes RM13,000. But if they live in a major city, have three children in university or college and another three still in school, try calculating their monthly expenses,” he said.
He noted that many urban middle-income families continue to face financial pressure despite technically being classified under higher income groups, highlighting the growing gap between income statistics and actual living conditions.
