Title:
UNDERSTANDING THE MALAYSIAN MIDDLE CLASS
Running Title: Malaysian Middle Class

Authors:
Russayani Ismail, Roslan Abdul Hakim, Nor Azam Abdul Razak

Abstract:
This paper examines the size, pattern and characteristics of the middle class in Malaysia using the data from two reports of the Household Expenditure Survey (HES) of Malaysia, HES 1998/1999 and HES 2009/2010. Defining the middle class as the group of households whose income is between +_ 25 percent of the median income, the data show that the size of the middle class is quite small and has slightly shrunk during the period under study. This result continues to hold when the sample is disaggregated by strata or ethnicity. The study also finds that a significant percentage of the middle class are private sector employees; service and factory workers; and secondary and primary school graduates. Turning to other income classes, the study finds that the size of both upper and lower classes is relatively large and growing. However, this result no longer holds when the sample is disaggregated by strata or ethnicity. In terms of strata, the upper (lower) class is found to be concentrated in the urban (rural) area. In terms of ethnicity, the upper (lower) class is found to be concentrated among the non-Bumiputera (Bumiputera). The findings from this study provide serious policy implications on social development strategies