Man Breaks Down Why One T20 Family Has RM10,000 Left A Month While Another Only Has RM300
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A LinkedIn post questioning how Malaysia defines "wealthy" households has gone viral, striking a chord with many Malaysians worried about targeted subsidies and rising living costs
In the post, Yie Hahn Hwong argues that the T20 label, often used to describe the country's top 20% of income earners, hides major differences in how families actually live and spend."T20 sounds rich. Until you realise how wide the bracket actually is," he wrote.To illustrate his point, Yie created a presentation titled 'Inside One Label', comparing three hypothetical households living in Kuala Lumpur.One family earns RM11,820 a month, another earns RM16,793, while a third earns RM54,274.Although all three households fall under higher-income categories, Yie argues that income alone does not reveal how much financial breathing room a family actually has.According to the examples in his presentation, the first family is left with just RM300 in monthly savings after covering housing, transport, food, education, healthcare, and other expenses.The second family retains RM600.The third family, meanwhile, has RM10,000 left over each month.
Image via Yie Hahn Hwong (LinkedIn
"The real difference is not just salary," Yie wrote
"It is the cushion. The ability to absorb a bad month. The ability to handle an emergency. The ability to keep moving without everything becoming stressful," he added.One of the examples in the presentation imagines all three families facing an unexpected RM5,000 expense, such as a hospital bill, vehicle breakdown, or urgent home repair.In the illustration, both Family A and Family B would need to rely on borrowing or debt to cover the cost, while Family C is able to absorb the expense using part of their monthly savings.
His post arrives at a time when Malaysia is actively rethinking how income groups are classified and how subsidies should be distributed
Currently, the Department of Statistics Malaysia (DOSM) classifies T20 households as those earning RM12,680 or more per month.However, the government has increasingly acknowledged that traditional B40, M40, and T20 categories can be too broad to accurately reflect a household's financial situation.As part of its economic reforms, the MADANI government is considering a system that focuses on Net Disposable Income (NDI) rather than gross household earnings.Under the approach, household income will be assessed alongside factors such as location, family size, and living costs to determine actual purchasing power.The system is expected to be powered by PADU, Malaysia's Central Database Hub, which will be used to help calculate a household's financial position after accounting for Basic Expenditure for Decent Living.
The debate has become particularly relevant as Putrajaya prepares to implement targeted RON95 fuel subsidies
The Ministry of Finance is currently refining mechanisms that would allow eligible Malaysians to continue purchasing RON95 at subsidised prices while gradually removing blanket subsidies for higher-income groups.Part of the challenge has been defining exactly who belongs in those higher-income groups.The government's introduction of the "T15" category, referring to the top 15% of earners, has sparked concern among many middle-class households, who worry that broad classifications could lump them together with significantly wealthier Malaysians.That concern is precisely what Yie's post attempts to highlight.
One example in his presentation examines the impact of an additional RM406 monthly expense, reflecting a potential increase in fuel costs
In his illustration, the added cost pushes the lowest-earning household's monthly savings into negative territory, nearly wipes out the second family's buffer, and has little effect on the highest-earning household."Maybe the conversation should not be: 'T20 are Malaysia's top 20 richest and don't need help,'" Yie wrote.
"Maybe it should be: Which T20 are we actually talking about?"
His conclusion mirrors a debate already taking place within policymaking circles: whether income alone is enough to determine who needs assistance, or whether a more nuanced approach is required.As Malaysia moves towards targeted subsidies and more detailed household assessments, the question raised by the viral post is becoming increasingly relevant: can millions of households really be grouped under a single label and treated the same way?
Image via Yie Hahn Hwong (LinkedIn)
