By Mohd Khairul Ramli
The classification of Malaysian households into income categories such as B40, M40, and T20 has long guided social and economic policy. However, the emergence of the T15 subgroup or “The Mahakaya” (ultra-rich), has recently garnered significant attention amidst debates surrounding subsidy reforms and income classifications. The T15 classification, introduced in Malaysia’s 2025 Budget, attempts to delineate a subgroup within the T20 category, focusing on households earning approximately RM13,000 or more per month. While ostensibly targeted at wealthier households for subsidy reduction, this classification has sparked debate regarding its appropriateness and potential unintended consequences for middle-income families, especially in urban settings where living costs are disproportionately high.
Who Constitutes the T15
The T15 represents the top 15% of income earners in Malaysia, a category introduced to refine the existing T20 classification. As outlined in government policy discussions and recent reforms, the T15 group includes households with monthly incomes exceeding RM13,000, varying significantly based on geographic and economic contexts. For instance, the income threshold in Kuala Lumpur is approximately RM19,000, while in less urbanized regions, it may hover closer to RM13,000. This localized variance reflects Malaysia’s regional economic diversity and underscores the difficulty in applying a uniform classification to a heterogeneous socioeconomic environment.
Despite being part of the T20 umbrella, the T15 subgroup captures a narrower slice of the income spectrum, aiming to isolate high-income earners for specific fiscal policies. These households, often considered affluent in official frameworks, bear a greater share of the fiscal burden through progressive taxation and subsidy withdrawals. However, critics argue that this categorization does not adequately account for the cost of living, family size, or the financial pressures faced by households in urban areas, complicating efforts to equitably redistribute resources. These nuances necessitate a more granular and locality-sensitive framework.