Consider This: Who Is Middle Class, Really?

For years, Malaysia has relied on the B40, M40, and T20 income classifications to shape policies and understand the nation’s economic strata. But recent debate sparked Budget 2025’s reference to ‘the T15’— said the wealthiest segment of the population— has exposed fault lines in our framework of economic stratification. A recent working paper from the Khazanah Research Institute, titled Searching for the ‘Poor’ and ‘Middle Class’ in Malaysia, challenges the very foundation of these categories and proposes new classifications to better reflect Malaysians economic realities. If the middle class isn’t what we thought it was, what does that mean for subsidy rationalisation and targeted benefits? On this episode of #ConsiderThis Melisa Idris speaks with Dr Suraya Ismail, Director of Research at Khazanah Research Institute and Gregory Ho, Research Associate, Khazanah Research Institute.