KUALA LUMPUR – The assumption that every Malaysian classified under the T20 category is wealthy, financially secure and living comfortably is becoming increasingly disconnected from reality, says entrepreneur and company director Ramakrishnan Nair.
He said many middle and upper income families, particularly in major cities, are now living under immense financial pressure despite appearing stable on the surface.
Ramakrishnan said society has become too quick to judge people based on income brackets alone without understanding the true cost of maintaining a family, business and professional life in today’s economy.
“People see the cars, the condominiums, the holidays and the private schools. What they do not see are the loans, the rising bills, the sleepless nights and the constant financial stress many families are carrying every month.
“A high salary today does not automatically mean someone is rich,” he said.
According to him, many families earning between RM15,000 and RM20,000 a month are left with very little disposable income after paying for housing loans, vehicle instalments, insurance, taxes, childcare, education expenses and daily necessities.
“There are families who earn what many would consider a ‘good salary’, but after paying everything, they are left counting every ringgit until the next paycheck.
“Some people look comfortable from the outside, but emotionally and financially they are exhausted trying to stay afloat,” he said.
Ramakrishnan also questioned why the T20 group continues to be treated as the primary target whenever subsidy rationalisation or new taxation measures are introduced.
He said there is a major difference between people with higher monthly salaries and those who genuinely possess significant wealth and assets.
“There are professionals earning high incomes but still trapped in debt and financial commitments.
“At the same time, there are individuals whose declared income may appear ordinary but they own multiple companies, luxury assets and properties worth millions. These are two very different realities,” he said.
He stressed that the current classification system no longer reflects the true economic challenges faced by urban Malaysians today, particularly in Kuala Lumpur, Johor Bahru and Penang where living costs continue to rise aggressively.
According to him, many SME owners and business operators are also facing increasing pressure due to higher operating costs, weaker consumer spending, rental hikes and economic uncertainty.
“Many businesses are surviving month to month. Some are cutting staff, postponing expansion plans and reducing investments just to remain operational.
“The pressure today is not only affecting the B40 or M40. Even many in the T20 category are struggling silently,” he said.
Ramakrishnan urged the government to review the country’s income classification model and adopt a more realistic approach that considers location, household size, commitments and actual disposable income instead of relying purely on gross monthly earnings.
He also called for wider engagement with economists, industry players and the rakyat before major subsidy decisions are made.
“This is not just about subsidies anymore. This is about fairness, dignity and understanding the real struggles faced by Malaysians today.
“Sometimes the people who look the richest are actually the most financially vulnerable,” he said. -MalayaDailyToday
