Understanding Malaysia’s income classifications is essential for every Malaysian, whether you’re planning your finances, researching property, or simply navigating economic discussions. Terms like B40, M40, T20, and the newer T15 are frequently mentioned, but their precise definitions and implications can sometimes be unclear.

This comprehensive guide from IQI Global will break down what these income groups mean, how they are determined by the Department of Statistics Malaysia (DOSM), and their significance in various aspects of life, especially for property buyers and investors.

You’ll learn the latest income thresholds, key trends, and how these classifications influence housing, financial aid, and economic planning.

TL;DR / Key Takeaways

• Malaysia’s income classifications divide households into B40 (Bottom 40%), M40 (Middle 40%), T20 (Top 20%), and T15 (Top 15% of T20) based on gross monthly household income.
• These classifications are updated by the Department of Statistics Malaysia (DOSM) using nationwide surveys, with the latest data from the 2024 Household Income Survey.
• Income groups significantly influence eligibility for government subsidies, financial aid, and housing schemes, directly impacting household purchasing power.
• Understanding these classifications helps property buyers identify suitable housing options and locations that align with their affordability and lifestyle.
• The government is currently reviewing these classifications to better reflect socio-economic realities and address issues like the informal economy and regional cost-of-living differences.

What Are Malaysia’s Income Classifications?

Malaysia’s income classifications categorise households into distinct groups – B40, M40, T20, and T15 – based on their gross monthly household income. These classifications, determined by the Department of Statistics Malaysia (DOSM), serve as a framework for understanding income distribution across the country, guiding government policy for subsidies, financial aid, and economic planning, and informing market strategies for businesses.

Understanding Malaysia’s Income Classifications

In Malaysia, the government categorises households into different income groups to monitor economic progress, distribute aid, and understand the socio-economic landscape. These classifications are vital in determining eligibility for various government initiatives, influencing everything from subsidies to housing schemes. Let’s delve into the specifics of each group, including the more recent T15 subgroup.

Defining Household and Household Income

Before exploring the income groups, it’s crucial to understand how “household” and “household income” are defined in Malaysia. According to the Department of Statistics Malaysia (DOSM), a household is “a group of related or unrelated individuals who live together and share common expenses for essentials such as food, shelter, and other necessities.” [Source: DOSM, 2024 Household Income Survey Report]

Household income, as defined by DOSM, refers to “the total income received by a household member, whether in cash or in kind, on a regular basis—daily, weekly, monthly, or annually—that is used for living expenses.” This includes wages, salaries, business income, transfers, and any other regular financial inflows. [Source: DOSM, 2024 Household Income Survey Report]

Based on the 2024 Household Income Survey, the average household income in Malaysia is RM9,155, showing an increase of 3.8% from RM8,479 in 2022. [Source: DOSM, 2024 Household Income Survey Report]

The B40 Income Group: Bottom 40%

The B40 income group, representing the “Bottom 40%” of earners, comprises households with the lowest income levels in Malaysia. This group is typically the primary target for various government social safety nets, subsidies, and assistance programs aimed at poverty eradication and improving living standards. Understanding the B40 income range is crucial for policymakers to design effective support systems.

As of the latest data, households in the B40 income range earn up to RM5,249 per month. The median income for the B40 group is RM3,440. [Source: aJobThing, 2025]

The M40 Income Group: Middle 40%

The M40 income group, or the “Middle 40%”, consists of middle-income households. Often referred to as the “middle class”, this group faces unique challenges, including rising cost of living and stagnant wage growth, making them a significant focus for policies aimed at economic stability and growth. The m40 salary range often determines access to affordable housing and financial products.

Households in the M40 income group have a gross monthly income between RM5,250 and RM11,819. The median income for the M40 group stands at RM7,694. [Source: aJobThing, 2025]

The T20 Income Group: Top 20%

The T20 income group represents the “Top 20%” of high-income households in Malaysia. These households typically have higher purchasing power and contribute more significantly to direct taxes. Knowing the t20 salary range helps in understanding the demand for premium goods and services, including higher-end properties.

The T20 income Malaysia threshold starts from RM11,820 per month and above. The median household income for the T20 group is RM15,867, while the average income is RM20,662. [Source: aJobThing, 2025]

The definition of what is T20 in Malaysia is simple: it signifies the wealthiest segment of the population based on their combined household earnings. This group often drives economic growth through consumption and investment.

Introducing the T15 Income Group: The Top Earners

Within the T20 category, a newer subgroup known as T15 (Top 15%) has emerged, specifically representing the wealthiest earners among the high-income households. This sub-classification allows for a more granular understanding of income distribution at the very top. The T15 income Malaysia group highlights the concentration of wealth and high earning potential.

To qualify for the T15 income group, a household typically earns RM13,000 and above per month, with a median income of RM19,781. This specific classification helps to distinguish the highest earners within the broader T20 category. [Source: aJobThing, 2025; J.P. Morgan, 2024]

The Impact of Malaysia’s Income Classifications on Property Decisions

Malaysia’s income classifications are not just abstract economic terms; they have tangible implications for households, particularly when it comes to major financial decisions like buying property. For aspiring homeowners and investors, understanding these groups can provide crucial insights into market dynamics, affordability, and available opportunities.

Eligibility for Government Housing Schemes

One of the most direct impacts of these classifications is on eligibility for government-backed housing schemes. Programs such as PR1MA, RUMAWIP, and other affordable housing initiatives are often specifically targeted at the B40 and M40 income groups. These schemes aim to make homeownership accessible to those who might otherwise struggle to afford it in the open market.

For instance, B40 households typically qualify for the lowest-priced affordable housing units, while M40 households may be eligible for slightly higher-priced options within these schemes. T20 households, by contrast, generally do not qualify for such subsidised housing, as they are considered capable of purchasing properties in the private market.

Understanding Affordability and Market Segments

Income classifications serve as a fundamental guide for understanding what property segments are affordable for different groups. Your income classification directly influences your loan eligibility and the type of property you can realistically afford.

• B40 households generally seek properties in the entry-level segment, focusing on affordability, basic amenities, and proximity to public transport or workplaces.
• M40 households often target mid-range properties, balancing affordability with better locations, amenities, and future growth potential.
• T20 households have the financial capacity to explore higher-end and luxury properties, often prioritising lifestyle, exclusivity, and investment returns.

Property Locations and Types by Income Classification

The choice of property location and type is significantly influenced by a household’s income classification, reflecting varying purchasing power and lifestyle preferences across Malaysia.

• B40 Households: These buyers typically focus on affordable housing options in suburban areas or developing townships, often in states like Perak, Kelantan, or outer districts of major cities. Property types include:
  • Low-cost apartments or flats
  • Terrace houses in less developed areas
  • Affordable housing projects (e.g., PR1MA, RUMAWIP)
  The priority for B40 income households is usually proximity to essential services and public transportation with a lower cost of living.
• M40 Households: The M40 income group often seeks well-located, mid-range properties in established suburbs with good connectivity and amenities. These are typically found in the outskirts of Kuala Lumpur, Selangor, Penang, or within growth corridors of other major cities. Property types include:
  • Mid-tier condominiums or apartments
  • Terrace houses in mature neighbourhoods
  • Newer townships with community facilities
  M40 salary range buyers balance affordability with a desire for a comfortable lifestyle and potential property appreciation.
• T20 Households: T20 income Malaysia households are generally able to afford premium properties in prime urban centres and exclusive townships. They seek properties that offer luxury, exclusivity, and strong investment potential. Popular locations include central Kuala Lumpur, affluent parts of Selangor (e.g., Damansara, Mont Kiara), and prime areas of Penang and Johor Bahru. Property types include:
  • Luxury high-rise condominiums
  • Semi-detached or bungalow homes in gated communities
  • Serviced residences in central business districts
  The t20 salary allows for choices that prioritise prestige, advanced facilities, and a high-quality living environment.

It’s also important to note that living standards and property values vary greatly across Malaysia. A household considered M40 in a state with lower living costs like Perak might fall into the B40 category if they were to live in a high-cost urban centre like Kuala Lumpur. [Source: aJobThing, 2025]

Impact on Lending and Loan Approvals

Lenders use income classifications, among other factors, to assess a borrower’s creditworthiness and determine loan eligibility. A higher household income generally translates to a stronger ability to secure larger loans with more favourable terms. Conversely, B40 households might face more stringent lending criteria or be limited to lower loan amounts, necessitating government intervention or specific financial products designed for them.

Ready to explore property options that align with your income classification? Connect with an IQI Global property expert today for personalized advice and listings.

Data & Market Insight: Malaysia’s Income Thresholds (Updated 2024)

The Department of Statistics Malaysia (DOSM) regularly updates these income thresholds to reflect changes in the economy and cost of living. Here’s a summary of the latest classifications:

[Source: aJobThing, 2025]

The average household income in Malaysia as of 2024 is RM9,155. [Source: DOSM, 2024 Household Income Survey Report]

Comparison Table: Property Considerations by Income Group

This table illustrates typical property characteristics and considerations for each income group in Malaysia.

Navigating Income Mobility and Future Trends

Malaysia’s income classifications are not static; households can experience income mobility, moving between classifications over time. Additionally, the government consistently reviews these categories to ensure they accurately reflect the nation’s socio-economic landscape and address contemporary challenges.

Shifting Tiers: Income Mobility in Malaysia

Income mobility refers to the movement of individuals or households up or down the income ladder. Factors such as career progression, education, entrepreneurship, and changes in household composition (e.g., dual-income vs. single-income families) can all contribute to a household moving from B40 to M40, or M40 to T20.

For example, a young couple starting their careers may initially fall into the M40 salary range. With career advancement and increased earnings, they may eventually transition into the T20 income Malaysia group. Conversely, economic downturns, job losses, or health crises can lead to downward mobility. This dynamic nature means that classifications like “t20 income” and “b40 income” are not fixed destinies but rather snapshots in time.

The Ongoing Review of Income Classifications (Updated 2026)

The Malaysian government has recognised the need to continually reassess and potentially redefine its income classifications. Discussions are underway to review the B40, M40, and T20 categories, especially in light of the informal economy and regional disparities in the cost of living. [Source: Free Malaysia Today, 2026]

Indera Mahkota MP Saifuddin Abdullah highlighted that a “new national consensus” is focusing on these reclassifications to ensure equitable prosperity and address issues like modern-day slavery and informal labour not captured in current data. Prime Minister Anwar Ibrahim also indicated that a proposal to review petrol subsidies for high-income earners is being finalised, underscoring the importance of accurate income classifications for targeted assistance. [Source: Free Malaysia Today, 2026]

These reviews are crucial to ensure that government policies, including targeted subsidies and financial aid, are directed to those who genuinely need them. The outcome of these discussions could lead to updated definitions and possibly new subgroups beyond T15, potentially impacting how “t20 income Malaysia 2026” and other classifications are understood in the near future.

Local Expert Insight

“Understanding Malaysia’s income classifications is foundational for any property decision. For B40 and M40 households, it’s about navigating government schemes and finding value. For T20 and T15, it’s about identifying premium investment opportunities and lifestyle properties. Our role at IQI is to bridge this understanding with real market opportunities, ensuring every client finds a property that not only fits their budget but also aligns with their long-term financial goals.”— IQI’s research team

“The cost of living varies dramatically across Malaysia. What constitutes a comfortable M40 income in a smaller state might barely cover basic necessities in Kuala Lumpur. This regional difference is vital for property buyers, as it dictates realistic housing budgets and available options. We advise our clients to consider not just their income bracket, but also the specific local economic context when looking to buy.”— A senior IQI property consultant

FAQ

Ready to make your next property move with confidence? Contact an IQI agent today for expert guidance tailored to your financial profile.

Continue Reading

• Guide to Affordable Housing Schemes in Malaysia
• Understanding Property Taxes in Malaysia
• Best Locations for Property Investment in Greater Kuala Lumpur
• The Future of Real Estate in Malaysia: Trends and Forecasts

Sources

1. Department of Statistics Malaysia (DOSM). (2024). Household Income Survey Report, Malaysia, 2024. Retrieved from https://www.dosm.gov.my/portal-main/release-content/household-income-survey-report–malaysia–states-2024
2. aJobThing. (2025). B40, M40, and T20 in Malaysia: Income Groups & Classification (2025). Retrieved from https://www.ajobthing.com/resources/blog/b40-m40-t20-malaysia-income-classification
3. Free Malaysia Today. (2026, May 15). New national consensus to review B40, M40, T20 classifications, says Saifuddin. Retrieved from https://www.freemalaysiatoday.com/category/nation/2026/05/15/new-national-consensus-to-review-b40-m40-t20-classifications-says-saifuddin

The post Malaysia’s Income Classifications: B40, M40, T20, and B50 Explained (Updated) appeared first on IQI Blog.

Last update: 13/08/2026

Choosing the right career after university or even considering a career shift can be a risk that’s highly rewarding.

Especially after the announcement of Budget 2025 presented by Prime Minister Datuk Seri Anwar Ibrahim on October 18th, 2024, the minimum wage will be raised to RM1,700 from RM1,500, starting on February 1, 2025.

That said, choosing the right job is crucial for individuals seeking a balance between good earning potential and career growth opportunities.

If you’re looking to change careers or start fresh, you’ve come to the right place.

Read on for a list of the seven latest high paying jobs in Malaysia!

1. Surgeon

Due to the nature of their work, surgeons are widely known as a highest paying job over the years.

Surgeons are responsible for performing complex and delicate medical procedures, requiring extensive training and expertise.

This high level of skill is reflected in their salary, making it one of the most high paying jobs in the medical field.

The rigorous educational journey, having to complete medical school and specialized residency training, prepares surgeons to handle life-saving procedures and complex cases, justifying the high salaries associated with this profession.

In addition to the base salary, surgeons can also earn significant income through bonuses and additional compensations, particularly in specialized fields like neurosurgery, cardiothoracic surgery, and orthopedic surgery.

These specializations often require even more advanced skills and training, further increasing earning potential.

2. Dentist

Dentists command high salaries due to a confluence of factors.  

The rigorous educational journey, encompassing a four-year undergraduate degree followed by four years of dental school, necessitates a substantial investment in time and resources.  

This extensive training equips dentists with specialized skills and in-depth knowledge in oral health, encompassing the diagnosis and treatment of dental diseases, the execution of oral surgeries, and the provision of cosmetic dentistry.

This expertise is highly valued in the job market, contributing to their high earning potential.  

Furthermore, the persistent demand for dental services, driven by the importance of oral health in overall well-being, creates a favourable market for dentists.  

Many dentists also embrace entrepreneurial opportunities by establishing their own private practices, granting them greater control over their income and potentially leading to higher earnings compared to employment within larger dental groups. 

3. Lawyer

Lawyers can specialize in multiple fields, including corporate law, criminal defense, intellectual property, and more.

Each specialization comes with its own set of challenges and rewards, often translating into high financial compensation.

For instance, corporate lawyers navigate complex mergers and acquisitions or handle intricate contractual negotiations, and are among the top earners in the legal field.

In addition to their base salary, lawyers can significantly increase their earnings through performance bonuses, billable hours, and successful case outcomes.

High-profile cases or representing major corporations can lead to exceptional financial rewards, making it a high paying job for commission-based income.

The path to becoming a lawyer requires rigorous education and training, including obtaining a law degree and passing the bar exam.

However, the financial rewards and the potential for career growth make it a highly sought-after profession.

4. Data Scientist

In today’s world, where AI adoption is accelerating across every industry, the role of a data scientist has become even more critical.

They use their analytical and technical skills to analyse large datasets, spot trends, and build predictive models that support smarter decision making.

They also maintain scalable and efficient data infrastructure, ensuring companies can manage growing data needs.

Their work often intersects with business strategy, as they help leaders translate complex data into clear, actionable insights.

With AI now central to business operations, data scientists play a key role in developing and optimising machine learning models, allowing companies to automate processes, personalise user experiences and predict future outcomes.

This combination of technical depth and strategic impact makes data scientists highly sought after, driving strong demand and competitive salaries across multiple sectors.

5. Artificial Intelligence (AI) Engineer

AI engineers design, build and deploy AI and machine learning models that help organisations automate processes and make smarter decisions.

Their work involves developing algorithms, training models, building data pipelines and integrating AI systems into real world applications.

They also ensure these models are efficient, scalable, and reliable, working closely with data scientists and software teams to turn business requirements into practical AI solutions.

With strong skills in programming, system architecture, and model optimisation, AI engineers play a crucial role in shaping modern digital products and platforms.

Demand for this role continues to accelerate across tech, finance, healthcare, logistics and property industries, making AI engineers highly sought after and well compensated for the impact they bring to organisations.

6. Civil Engineer  

As urban populations grow and nations develop, the demand for skilled engineers to create and maintain infrastructure remains consistently high. 

The profession requires a deep technical understanding of structural analysis, materials science, and construction methods, often demanding years of education and hands-on experience.  

The responsibility civil engineers carry is significant, as they are tasked with ensuring the safety and durability of structures that are essential for daily life, transportation, and even disaster resilience.  

Many civil engineers benefit from opportunities for career growth and salary increases through advanced education or unionized positions, making it a financially rewarding profession. 

7. Real Estate Agent / Real Estate Negotiator

In a booming real estate market, successful real estate negotiators can earn large incomes, making it one of the highest paying jobs in the sales sector.

Having good communication, leadership skills and interpersonal skills is the key to exceptional financial rewards in this field.

Anegotiator’s income potential is primarily driven by commissions. This means that their earnings can vary significantly based on the deals they close.

Unlike fixed salary roles, the appeal of a high paying job for commission like real estate negotiators lies in the opportunity to benefit from a pay structure that rewards their skills, effort, and success in closing deals.

Plus, you do not require a degree to be a real estate negotiator, which is perfect for fresh graduates and those who want to kickstart their career without any prior experience.

Stepping into a new career can be daunting. However, with the right support and a healthy amount of risk appetite, switching careers may just be the best decision you can make.

Version: CN, MY

Frequently Asked Questions

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Continue reading:

1. Need Extra Money Fast? You Should Try These 8 Flexible Jobs Perfect for Uni Students!
2. Unhappy in Current Job? Become a Real Estate Negotiator (REN) and Be Your Own Boss!
3. What is Professional Networking, and Why Do You Need to Do It?

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Last updated: 13/08/2026

Just because you don’t have a degree, doesn’t mean you can’t make a lot of money.

In fact, not all well-paying positions demand a college degree – rather, they prefer candidates with the right abilities, experience and background.

What are some of the highest-paying jobs without a degree? Let’s find out!

Which salary range qualifies as high income?

Before we get into these professions, let’s break down the average wage in Malaysia.

The monthly salary for the average Malaysian worker is about RM6,590, while RM1,795 is the lowest average salary in the country.

To be regarded as ‘wealthy’ in Malaysia, you would have to make a wage far more than the average. You’re considered wealthy if you earn more than RM17,600 a month.

That being said, anything about RM7,000 a month is considered a good paying job if you don’t have a degree.

1. Lift Mechanic

Lift mechanics maintain lifts, elevators, and moving walkways operational and functional.

Their employment entails a variety of designing, installations, maintenance, and repairing tasks on electrical or hydraulic equipment.

Tasks performed by lift mechanics:

The breadth of tasks lift mechanics carries out depends on the technology they’re working with. The following are some of the routine activities lift mechanics complete:

• Design lift equipment
• Read blueprints
• Measure and cut materials
• Use tools to assemble, install, and repair equipment
• Install electrical systems
• Repair issues
• Conducts safety tests
• Communicate with clients

Skills required to be a lift mechanic:

Lift mechanics are highly experienced experts that make sure that vital construction equipment operates in a safe and efficient manner.

To manage the technical parts of their profession and successfully connect with clients, this skill set may encompass a variety of soft and hard abilities.

The following are examples of essential lift mechanic skills:

• Technical skills
• Teamwork
• Communication skills
• Attention to detail
• Critical thinking
• Physical strength

You don’t need a degree to be a lift mechanic if you have the aforementioned abilities and are willing to perform the activities listed above!

Average Annual Salary:

A subset of general facility maintenance and repair is elevator mechanics. It makes an average of RM84,000 every year.

You either need to have vocational training, or you must learn on the job in order to work as a lift mechanic.

2. Personal Trainer

A personal trainer, often known as a fitness coach, is a health, fitness, and wellness professional who aids customers in reaching their fitness objectives.

They are responsible for organizing and monitoring training routines, advising customers on proper form while exercising, and monitoring fitness and performance targets over time.

Tasks performed by personal trainers:

In order to help their customers achieve their fitness objectives, personal trainers have essential obligations and responsibilities.

These tasks and obligations might involve:

• Establishing individualized exercise programs to enhance cardiovascular health, musculoskeletal flexibility, and endurance
• Establishing exercise objectives and tracking client progress
• Advising consumers to consult a nutritionist for nutritional guidance and creating meal plans to encourage healthy eating
• Instructing customers on how to correctly utilize the gym’s equipment to accomplish their exercise

Skills required to be a personal trainer:

You’ll need to have the following skills:

• Emotional intelligence and empathy
• Communication skills
• Ability to motivate and inspire others
• Stress management skills
• Problem-solving skills

Average Annual Salary:

This field of job is already open to you if you really enjoy working out.

If you’re physically fit, have the energy, and have access to a gym, you may launch your own personal training company.

This is a job that doesn’t require a degree. Although formal schooling in related fields would undoubtedly be helpful if you’re seeking a higher level of customers.

How much you work for your clients will determine how much money you make here.

Naturally, the personal trainers that put in the most effort for their customers get the best salaries.

With this employment, you can easily make RM 100,000 a year.

3. Event Manager

Event managers also referred to as events managers are in charge of organizing, publicizing, and seeing to it that each event runs smoothly.

These might range from a marriage to an online seminar.

Tasks performed by event managers:

The following are the duties for which an event manager is held responsible:

• Organizing an event from beginning to end
• Yielding ideas for the occasion
• Budgeting for events
• Talks with sponsors
• In charge of event locations and logistics
• In charge of audio and online event businesses
• Creating marketing strategies for events

Skills required to become an event manager:

Following are the skills that you must possess in order to excel in an event management job that doesn’t require a degree.

• Communication skills
• Negotiation skills
• Organizing skills
• Attention to detail
• Aesthetic skills
• Time-management skills

Average Annual Salary:

Usually, a related qualification or degree would be beneficial, but in handling and organizing events experience comes first.

The actual value of an events manager is in how well they can adjust to these fluctuation dynamics when various factors (vendors, venue, transportation, etc.) vary from day to day.

You can earn up to RM140,000 if you work hard with dedication and excellence.

4. Flight Attendant

A flight attendant is a part of the aircrew on passenger airlines, many business jets, and certain government aircraft.

They are also referred to as stewards or stewardesses or air hosts.

Flight attendants, often known as cabin staff, are largely in charge of the security and comfort of passengers.

Tasks performed by flight attendants:

Some of the major responsibilities of flight attendants are mentioned below that surely don’t require an associate degree to fulfill.

• Ensure passenger safety and comfort by guiding and helping them
• Always check for safety before taking off
• Greeting and interacting with customers
• Observe the passengers’ orders
• Display emergency gear and provide passengers with information on how to utilize it
• Track, control, and safeguard the cabin

Skills required to become a flight attendant:

The following are the skills to ace this job:

• Patience
• Customer service skills
• Stress management skills
• Verbal communication skills

Average Annual Salary:

You only need an SPM-level education to begin following this professional path.

This job don’t require a degree but you need to appear nice, speak well, be polite, be well-groomed, and be presentable.

Since the work also demands you to be ready to react in an emergency, you are compensated handsomely.

Not many people are aware of this, but flight attendants must also be able to provide basic medical care and have the awareness and judgment to identify and handle potentially dangerous circumstances.

A yearly salary of RM140,000 is possible. Your take-home income is also influenced by the travel allowance.

5. Real Estate Negotiator

A real estate agent who holds a license facilitates transactions between buyers and sellers and advocates them in litigation.

Agents often receive payment in the form of commission, a percentage of the home’s sale price.

Depending on their state and brokerage, agents get a different proportion.

A real estate firm serves as the management office for agents, giving them access to the company’s reputation, network, and legal team.

Tasks performed by real estate agents:

Following are the tasks performed by a real estate agent:

• Creating customer leads for property purchases, sales, and rentals
• Gives client advice on market circumstances, pricing, and mortgages
• By evaluating properties, he develops a competitive market price
• Making listings of real estate selling properties with information such as location, amenities, square footage, and so on
• Shows properties to prospective buyers and tenants
• Making purchase proposals to sellers
• Making it easier for buyers and sellers to negotiate
• Examining purchase contracts to ensure that all conditions are satisfied
• Using advertisements, classifieds, and open houses to promote homes
• Drafting loyalty contracts, purchase agreements, lease contracts, mortgages, and other real estate-related paperwork

Skills required by a real estate agent:

You’ll need to have the following skills to ace this field of highest-paying jobs:

• Marketing skills
• Active listening skills
• Good communication skills
• Honesty and integrity

Average Annual Salary:

To be a real estate agent, you don’t need an associate degree or a high school diploma, but you do need to take a course in real estate negotiation and become certified.

In order to register your real estate negotiator number with the Malaysian Institute of Estate Agents, you must first be accepted by a real estate firm. You may then begin selling real estate.

This work may be completed with a lot less effort now that there are so many internet real estate markets that make it simple to promote your listing.

To attract customers and earn that commission, you must nonetheless put in a lot of effort. But if you work hard, you may easily make up to RM120,000.

Conclusion

There are many highest paying jobs available that pay very well without requiring you to invest a lot of time or money in formal education and associate degrees.

Keep in mind to save money and increase your emergency fund while you’re looking for a new job so you have money to spend before you venture on your next career!

Version: CN & MY

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Continue reading:

1. How To Apply For Jobs With Zero Experience

2. Insights into the Average Malaysian Salary Trends of 2023

3. Breaking Down the Ideal Careers for Young Adults

The post These 5 Jobs Pay You More Than 80k A Year & Don’t Require A Four-Year Degree! appeared first on IQI Blog.

Version: BM

This article was written by K. Soma Sundram, a Registered Estate Agent with 36 years of experience.

The questions are in the air… one of them is: Who is a real estate negotiator and what is a real estate negotiator’s average salary and commission like?

As such this article serves as your guidance to explore the in-depth workings of a Real Estate Negotiator and how much salary and commission he/she can make or earn.

1. Types of Practitioners

There are three types of practitioners and a job career that you can choose from in the industry:

• i. Real Estate Agent (REA)
• ii. Probationary Real Estate Agent (PEA)
• iii. Real Estate Negotiator (REN)

The term ‘Agent’ is a misunderstood term and is used generally by the public referring to all involved in Malaysia.

To avoid misinterpretations, it is first important to understand the term ‘Real Estate Practitioners’ in Malaysia. Learn more about it here.

Now, let’s focus on the job career of Real Estate Negotiators and their salary and commission.

Having worked in this job profession for many years, we have received increasing inquiries about the real estate agent salary and a few other questions that everyone wants the answer but they do not get the full picture.

Starting a career as a Real Estate Negotiator is rather a bold move and they are normally attracted by how much salary and commission a real estate agent will earn in a month or years.

Salary and commission often rank highly as the ultimate deal breaker in pursuing a job career in the real estate industry.

2. Qualities Real Estate Negotiators Should Have

A successful person as a real estate negotiator generally practices or has these skills to reach or support where they are. Do you embody or experience any of them?

• An ability to chat, support, and deal with clients with ease
• Willingness to learn and work hard
• ‘Good ears’ to listen to people’s view
• Kind and enjoy helping people from all walks of life
• Having good discipline and work ethics
• Have a long-term vision to make this a career
• Have a deep desire to succeed in life
• Have leadership skills & take personal responsibility

If your answer is yes, yes, yes to at least five of the eight statements above, your why has become why not?

3. How To Determine Real Estate Agent Salary?

Agencies or firms employ Real Estate Negotiators either on:

• Contract of Service: where you receive a basic salary and a low sale commission payment structure
• Contract for Service: where you are an independent contractor and receive zero basic salary with a higher sale commission payment structure

The real estate agent salary (or basic salary if any) and commission structure varies by agency or firm, so remember to check with your employers or any written document before proceeding with your project marketing.

Real estate agents control their salaries by investing their time, energy, and effort to maximize the opportunities available.

In IQI, we have real estate negotiators who have achieved up to 7-digit worth of income levels in a year!

4. Types of Sale and Commission Payments

a. Secondary market or subsales

The Board of Valuers, Appraisers, Estate Agents and Property Managers (BOVAEP) mandates a minimum payout of 40%, with variations based on individual firm practices and performance. Seniority and transaction volume may influence higher payouts, but all rates must comply with the guidelines set by BOVAEP.

b. New projects – Marketing new developments

Property developers often offer higher commissions. However, as per BOVAEP’s rules, firms may provide additional incentives beyond the regulated fee.

For official fee structures, refer to BOVAEP’s guidelines here.

5. What do Agencies give the Commission Rates?

A real estate negotiator generally collects a professional fee of 3% on the sale value of a property when it is sold.

e.g. You sold a house for RM500,000. So, RM500,000 X 3% = RM 15, 000 (fees collected from the project seller).

If your firm’s commission structure payout is 40%, you will be paid RM15,000 x 40% = RM6,000.

In the case of rental transactions:

e.g. You rented a property for RM2,000, so RM2,000 x 1.25% = RM2,500 (fees collected from the property landlord).

If your employer’s commission structure payout is 40%, RM2500 x 40% = RM1,000.

6. Can Real Estate Agents Get Any Incentives/Awards When They Achieve the Sales Targets?

Apart from commission earnings, there are many incentives and awards available to real estate agents.

It varies from project to project, the region, and achievement at the overall company level.

At IQI, we recognize and award real estate negotiators who reach their full potential in their careers and achieve value in their personal lives.

Exciting rewards/incentives are offered to the real estate negotiator to motivate them further.

These incentives come in several categories. Real estate agents get to choose global travel destinations like London, Osaka, Seoul, Dubai, etc., or receive luxury awards that include grand luxury cars like BMWs.

Conclusion

Being a real estate agent is a challenging profession where hard work, a good attitude, and ethical standards are all important factors.

Real estate agent salary, earn, or pay varies depending on the real estate agency or employers you join in Malaysia. They earn a different basic salary and commissions depending on how many properties they have sold to their clients and company.

Money is never the main goal; it’s about helping people.

The real estate industry offers boundless potential for those seeking a rewarding career, and at IQI, we empower individuals to achieve their goals. With 23 branches nationwide, IQI provides hands-on training and mentorship to help new real estate agents refine their skills and build successful careers.

This article was authored by K. Soma Sundram, a registered estate agent with 36 years of experience. Soma has trained over 200,000 agents and authored the National Certification Course (NCC) for real estate negotiators.

Learn more about K. Soma Sundram on LinkedIn.

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Continue reading:

1. Why You Should Pursue a Real Estate Career in Malaysia

2. Are Real Estate Negotiators The Same As An Agent?

3. Want to Become A Real Estate Negotiator With IQI Malaysia? Here’s How To Sign Up!

The post Real Estate Agent Salary in Malaysia – How Much Do They Really Make? appeared first on IQI Blog.

“How much are average monthly salaries in Malaysia?” is a question that every working adult wonders.

In 2026, Malaysia’s labor market shows a diverse range of salaries, influenced by various factors such as industry, education, experience, and location.

This article provides a detailed overview of interesting facts and statistics about average Malaysian salary, using information from different sources to give a complete understanding of salaries in the country.

Let’s take a look at it!

What’s Malaysian Average Salary?

Average Monthly Salary

The mean salary is the average of all income received by employees in a given sector of the economy, locality, etc. over a specific time frame.

In Malaysia, the average monthly salary paints a picture of the economic landscape. As of 2025, this figure stands at approximately RM 6,610, offering a glimpse into the financial well-being of the average Malaysian worker.

Source: Trading Economics

Let’s simplify ‘median‘ in the context of salaries. Picture all salaries in Malaysia lined up from the lowest to the highest.

The median salary is the one right in the middle of this line. It’s like the midway point in a race of earnings.

As per Salary Explorer, for those in the formal job sector, this midpoint salary is RM 5,810. It’s a number that tells us what’s typical, cutting through the extremes to show us a more common earning experience.

Source: Salary Explorer

What is the salary range in Malaysia?

What is the average salary in Malaysia? Considering the differences in average monthly salaries across Malaysia’s states and urban districts, the average salary range of employees working in Malaysia lies somewhere in the region of RM1,670 (lowest average monthly wages to RM29,400 (highest average monthly wages).

Average Annual Salary

Diving into the financial currents of Malaysia, we uncover median monthly wages, a fascinating number that paints a vivid picture of the working life here.

Average salary in Malaysia is 137,118 MYR per year. The most typical earning is 54,738 MYR. All data are based on 7,223 salary surveys, which were done by Average Salary Survey.

This annual salary provides a more complete, colorful picture of Malaysia’s earning landscape, providing valuable insights for everyone from new job seekers to fresh graduates to seasoned professionals charting their career paths.

Average Annual Salary Increments

Considering the growth of Malaysia’s economy, a report shared by The Edge mentioned that most industries are projecting a 5% salary increase, particularly in the High-Tech and Energy sectors.

This anticipated growth reflects the demand for skilled professionals in these rapidly evolving fields, offering significant talent acquisition and retention opportunities.

As Malaysia continues to position itself as a hub for innovation, employees in these sectors can expect even more excellent career advancement prospects.

Malaysia’s Minimum Wage

According to Prime Minister Dato’ Seri Anwar Ibrahim, a minimum wage has been set to ensure a basic living standard.

As of presented in Budget 2025, the minimum wage is 1700 MYR/Month, a critical step towards financial equity for all Malaysian workers.

This policy is all about fairness in the workplace. It helps the government ensure that all workers, especially those with lower incomes, earn enough for their basic needs.

This step shows the Malaysian government’s commitment to a more balanced and fair economy.

Malaysia’s Highest Paid Jobs

The highest average monthly salary in Malaysia is seen in top-tier positions.

Executives in sectors like banking, technology, and healthcare often command the highest paychecks, showcasing the value of leadership and specialized skills in the Malaysian job market.

Here are the top 5 highest paying jobs in Malaysia:

1. C-suite Roles: Executive positions like Chief Executive Officer, Chief Financial Officer, and Chief Operating Officer, are among the highest-paying jobs. Salaries range from RM480,000 to RM800,000 annually in sectors like Banking, Financial Services, Business Services, Engineering, etc.
2. Head of Legal: In the banking and financial services sector, a Head of Legal can earn an average of RM540,000 per year​​.
3. Head of Regional Sales: This role in the healthcare and life sciences sector can bring in an average salary of RM500,000 annually​​.
4. Managing Director, Operations: In the engineering and manufacturing sector, a Managing Director of Operations can expect to earn around RM450,000 per year​​.
5. Senior Insurance Manager: A Senior Insurance Manager can expect an average annual salary of RM390,000​​.

Source: Michael Page

Read more about the highest-paying jobs in Malaysia.

States with the Highest Average Salary

In Malaysia, the average salaries offered by different states showcase a diverse economic landscape.

Interestingly, Kuala Lumpur, often assumed to be the top earner, actually ranks second with an average salary of RM4,013.

The highest average Malaysian salary is found in W.P. Putrajaya, at RM4,504. This variation in average monthly wages across states reflects each region’s varying cost of living and economic opportunities.

This is because Kuala Lumpur and Putrajaya offer higher salaries due to their status as economic and administrative hubs, with a concentration of high-paying industries and a higher cost of living.

In contrast, rural areas like Sabah and Perlis have lower salaries as they primarily focus on agriculture and manufacturing, with a smaller talent pool and lower living costs.

Here’s a detailed look at the average salaries in various Malaysian states:

Source: Kitapunya

Malaysian Salary Across Ages: Median Earnings by Age Group and Gender

In Malaysia, age correlates with earning potential. Younger workers typically earn significantly lower median wages, while experience and seniority often lead to a higher salary.

As shown in the figure below, if you’re between 45 and 49 years old, you’re likely earning the most money each month compared to other age groups – about 4,130 Malaysian ringgit on average!

Even though Malaysia has a strong economy and people are earning more money, life is becoming more expensive.

A large portion of what people earn, roughly 40%, is spent on housing and food.

Souce: Statista

Salary Comparison by Gender in Malaysia

Specific industries in Malaysia offer exceptionally high median wages, setting the bar for what professionals in these fields can aspire to earn.

While certain sectors in Malaysia offer high median wages, employers must also consider the gender pay gap.

Despite the expectation of equal pay for equal work, reality paints a different picture.

In Malaysia, there’s a notable difference in earnings between men and women across various career fields. On average, male employees earn about 11% more than their female employees.

This statistic from Salary Explorer highlights the persistent issue of gender disparity in salaries, a challenge that spans across industries and roles in the Malaysian workforce and job market.

The average yearly salary increase

In Malaysia, as people gain more work experience, they typically earn higher salaries. According to Salary Explorer, for those with 2 to 5 years of experience, their pay is about 32% more than what beginners make.

Once they surpass 5 years of experience, the increase jumps to an average of 36% compared to those with less experience.

After hitting the 10-year mark, salaries rise by another 21%, and there’s an extra 14% boost for those with over 15 years of experience.

It’s interesting to note that by the time a person has worked for 10 years, they often double their starting salary! However, these numbers can vary a lot depending on the job and location.

In Malaysia, salaries are as diverse as its vibrant culture, with each step in a worker’s career bringing a new level of financial reward.

As workers climb the ladder of experience, their earnings see a notable rise. By the time one reaches a decade in their profession, their salary often doubles from where they started.

This upward trend in pay reflects Malaysia’s commitment to growth and fairness, yet it’s tempered by the reality of a gender pay gap and the ever-increasing cost of living.

Understanding these Malaysian salary trends offers a window into the economic heartbeat of the country.

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1. Get More Returns! 6 Ways to Invest 10% of Your Salary

2. Mastering Money: The 7:3 Salary Management Method for Malaysians

3. How Much is A Real Estate Agent’s Salary? 6 Things to Know About A Property Negotiator’s Income Potential

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Struggling not just to save for future investments but also to fund those well-deserved getaways or even just cover basic living costs?

Navigating financial commitments with a limited salary can be a daunting challenge. So, how can you stretch your income further, allowing for savings and the occasional indulgence?

With the 7:3 salary management approach, you can learn to manage your salary and uphold a comfortable standard of living, save effectively, and move closer to achieving financial independence at a faster pace. Give it a try; your future self might thank you!

1. What is “7:3 Salary Management Method”?

The golden rule on how to manage your salary is the 7:3 salary management method.

Simply put, this method recommends dividing your income as follows:

• 70% dedicated to living expenses
• 30% set aside for savings

This method helps you use your money wisely.

It lets you be ready for unexpected costs and still have some fun. 

2. How to Implement the “7:3 Salary Management Method”?

i. 70% salary for living expenses

As mentioned above, when your salary is divided into 70% and 30%, your living expenses must be controlled within 70%, including:

• Food
• Car loan
• Mortgage/Rent
• Car fuel
• PTPTN
• Phone bills
• Road tolls
• Parking fees, etc

For example, if your net income is RM3,000, 70% of your salary would be RM2,100, and your living expenses must be controlled within RM2,100.

If you spend more than that, it’s a sign to check where your money’s going and maybe cut back on some things.

ii. Allocating 30% for savings

Out of your salary, 30% should be set aside for savings. But don’t just lump it all together! Diversify where this 30% goes.

Break it down like this:

• 10% to an emergency fund.
• 10% to a consumption fund.
• 10% for wealth accumulation.

iii. Types of funds

Remember the global crisis of Covid-19 two years back?

Many found themselves without jobs and stable incomes almost overnight. Such sudden shocks can be less daunting if you’ve got an emergency fund. It’s your financial cushion for unexpected hardships in the long run.

Then, there’s the consumption fund. Think of this as your ‘wish list’ fund. We all have dreams – that new gadget, an exotic vacation, or even a fancy meal. Instead of giving up when faced with a hefty price tag, this fund ensures you can occasionally treat yourself without breaking the bank.

Instead of feeling disheartened by a high price, let it motivate you. With the 10% you save monthly salary, that dream purchase becomes more achievable. It’s all about setting and reaching your savings goals.

Say you’re eyeing an overseas trip that’s priced at RM3,000. Here’s how you can make it happen:

RM3,000 x 10%= RM300 (a month)

RM300 x 12= RM3,600 (a year)

Consider setting aside a small portion of your consumption fund for monthly treats. Over time, this will add up, and before you know it, you’ll have extra cash on hand!

So, when it comes to splurging on something you’ve always wanted, no more second-guessing.

Life’s too short—live it up and leave no room for regrets!

A wealth fund is all about making your money work for you.

Think of it as planting seeds to grow your wealth. It’s not about investing 10% of your salary monthly but accumulating it until you have a significant amount to invest effectively.

Imagine stashing away RM300 each month. Once you’ve saved up to RM3,000, you can invest in mutual funds or lock it in a fixed deposit. Let your savings pave the way to more prosperous returns!

3. Investment in Malaysia

Considering an investment in Malaysia? You’ll find a plethora of options, ranging from fixed deposits, stocks, and funds to gold and property.

While ASNB funds and fixed deposits hold their ground, real estate has become a favoured choice for many. Given the relentless march of inflation and the downward drift of currency value, real estate’s worth continues to soar. This makes it a robust shield against inflation.

However, diving into the real estate market isn’t without its complexities. However, knowing how to save money and set aside part of your income is one of the stepping stones towards reaching your financial goals.

Proper market research is essential to ensure you’re making an informed decision. And if you’re feeling a bit overwhelmed, consider working with a professional.

Enter IQI – boasting a global network of over 30,000 seasoned real estate professionals.

With top-tier training, they’re equipped to offer invaluable investment advice, guiding you to the perfect property investment.

The post Mastering Money: The 7:3 Salary Management Method for Malaysians appeared first on IQI Blog.