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Sabah Household Income 2026 — Median RM4,961 & Deciles

Q: How does Sabah's household income compare to the national average?

Sabah's median household income is RM4,961/month (2022) , roughly 29% below the national median of RM7,017 . Mean household income is RM6,540 (vs national RM8,500+), ranking Sabah 14th of 16 states . The gap widens at the upper end: the top 20% (T20) earn RM32,000/month in Sabah vs RM45,000+ nationally. This reflects Sabah's lower-wage economy, limited high-income professional jobs, and brain drain of skilled workers to Peninsular Malaysia.

Q: What does the income gap between rich (T20) and poor (B40) mean?

B40 (bottom 40%) earn RM1,500–3,500/month in Sabah. T20 (top 20%) earn RM15,000–100,000+/month. The ratio is roughly 5–10:1 . This inequality is significant: the top quintile earns 20x the income of the bottom 5%. GINI coefficient for Sabah is ~0.378 — lower than Peninsular Malaysia (0.41) but indicating substantial inequality. Causes include: (1) unequal education access; (2) asset ownership concentration (land, businesses); (3) public sector salary advantage; (4) limited economic mobility for rural and marginalized groups.

Q: What is B40 and why is it important?

B40 (Bottom 40%) defines the lower-income segment: households earning up to roughly RM3,500–4,000/month (threshold varies by state and year). In Sabah, B40 encompasses ~1.5 million people in ~300,000 households . These are the primary targets of government social protection: BR1M/Sumbangan Asas Rahmah (cash transfers), subsidised utilities, and education assistance. B40 is a politically sensitive category — parties compete on social spending to this group. Understanding B40 demographics (ethnic, geographic, sectoral distribution) is critical for effective policymaking.

Q: What causes the urban-rural income gap in Sabah?

Urban-rural gap is 2.1:1 in Sabah — KK residents earn ~RM6,200 median vs interior rural households ~RM2,900. Causes: (1) Job availability — cities have government offices, retail, hospitality, services; rural areas have farming, informal work, or no work; (2) Wage levels — urban wages are 30–50% higher for similar work; (3) Cost of living differences — rent is higher in cities but other costs are lower due to competition; (4) Education and skills — cities attract educated workers; rural areas have lower average education; (5) Informal economy — rural incomes are seasonal and unpredictable (agriculture, fishing, informal trade). Internal migration from rural to urban areas is ongoing, driven by this income gap.

Q: How many people live below the poverty line in Sabah?

The poverty rate in Sabah is 7.4% (2024, DOSM), affecting approximately 280,000 people . Poverty line income threshold is approximately RM2,705/month . This is significantly higher than the national rate of 5.1% (Malaysia's poverty rate). Hardcore poverty (extreme poverty) affects 0.7% of Sabah (~26,000 people) earning below RM1,236/month (food poverty line). Sabah has the highest poverty rate of any Malaysian state. Regional variations: interior districts (Pensiangan, Nabawan, Tongod) have poverty rates exceeding 20%; urban KK has rates below 5%.

Q: What social safety nets protect low-income Sabahans?

Main programmes: (1) Sumbangan Asas Rahmah (SAR) — monthly cash transfer to B40 households (RM100–300/month depending on eligibility); (2) SOCSO (Employees Provident Fund) — mandatory for formal sector workers, provides retirement, disability, survivor benefits; (3) Subsidised utilities — government subsidises electricity and water for lower-income households; (4) Education aid (BR1M-style) — cash for school uniforms, textbooks; (5) Health services — basic healthcare is free/subsidised at government clinics and hospitals. However, coverage gaps exist: informal workers (self-employed, plantations, domestic helpers) often fall outside these programmes. Adequacy is debated — SAR transfers cover 10–30% of basic needs, requiring supplementation.

Last updated: 11 April 2026

Southeast Asian family in modest Sabah home reviewing household budget and expenses

ℹ️ The quick answer

Sabah\u2019s median household income is RM4,961 per month (2022), roughly 29% below the national average of RM7,017. The poverty rate is 7.4% (280,000 people), the highest in Malaysia. There is a stark urban-rural gap: KK residents earn ~RM6,200/month median vs interior rural households ~RM2,900 — a 2.1x differential.

💰

RM4,961

Median HH income

per month (2022)

💵

RM6,540

Mean HH income

per month

📊

7.4%

Poverty rate

~280,000 people

⚠️

0.6%

Hardcore poverty

~26,000 people

🏙️

2.1x

Urban-rural gap

median income ratio

📉

14th/16

State rank

by median income

Sabah Median Household Income Trend, 2014–2022

Income grew from RM3,177 (2014) to RM4,961 (2022), a 56% increase. However, much of the 2019–2022 jump reflects DOSM’s 2021 PLI methodology revision and commodity export boom (2021–2022).

Source: DOSM Household Income Survey

Sabah\u2019s income landscape

Sabah is among Malaysia\u2019s lower-income states. Median household income of RM4,961/month is below the national median by nearly 30%, and the poverty rate (7.4%) is 45% higher than Malaysia\u2019s (5.1%). This reflects the state\u2019s economic structure: most employment is in agriculture, plantations, services, and informal sectors — jobs that pay less than skilled manufacturing or finance roles concentrated in Peninsular Malaysia.

Income is highly unequal. The bottom 20% (B40) earn RM1,200–2,100/month; the top 20% (T20) earn RM15,200–32,000+/month — a 10–15x range. Urban-rural disparities are even starker: city residents earn 2–3x rural averages.

Income deciles: who earns what

Household income in Sabah is distributed unevenly across ten income deciles (quintiles × 2). The poorest 20% and richest 20% are the most useful policy thresholds:

Household Income Deciles: Sabah vs Malaysia (2022)

At every income level, Sabah households earn 20–30% less than their national counterparts. The income gap widens at higher deciles, indicating less high-earning professional jobs in Sabah.

Source: DOSM Household Income Survey 2022

B40 (Bottom 40%): Deciles 1–4

Median income RM1,200–2,100/month. Comprises rural farmers, plantation workers, informal traders, and unemployed. These are the primary targets for government social assistance (Sumbangan Asas Rahmah, BR1M-style transfers). In Sabah, roughly 1.5 million people fall into B40 — about 40% of the state population.

M40 (Middle 40%): Deciles 5–8

Median income RM4,961–10,500/month. Includes government workers (teachers, nurses), service workers (retail, hospitality), skilled tradespeople, and small business owners. This is the aspiring middle class — stable employment, some savings, but vulnerable to economic shocks (job loss, health crisis).

T20 (Top 20%): Deciles 9–10

Median income RM15,200–32,000+/month. Includes professionals (doctors, engineers, lawyers), senior government officials, successful business owners, and major plantation/export company managers. Sabah has fewer high-earning professionals than Peninsular states, due to brain drain and limited multinational corporate presence.

Poverty and hardship

Official poverty definition (2024): households earning below RM2,705/month (Poverty Line Income — PLI, set by DOSM). Sabah has 7.4% poverty rate (~280,000 people), compared to national 5.1%. Sabah has the highest poverty rate of any Malaysian state.

Hardcore poverty (extreme): below RM1,236/month (food poverty line). Affects ~0.6% of Sabah (~26,000 people) — those unable to afford basic nutrition.

Poverty is concentrated in:

Interior districts: Pensiangan, Nabawan, Tongod have poverty rates exceeding 20% due to limited employment, subsistence farming, and isolation.
Rural areas generally: 70% of Sabah\u2019s poor live in rural areas, dependent on low-value agriculture and informal work.
Specific groups: indigenous communities (Murut, Rungus), small-scale farmers, elderly with no pensions, and single mothers.

ℹ️ Poverty line income updates

DOSM revises the Poverty Line Income (PLI) periodically to reflect cost of living changes. In 2021, the PLI was adjusted upward significantly, which increased official poverty headcounts but better reflects living costs. Sabah\u2019s PLI is typically RM2,500–2,750 depending on methodology.

Urban-rural disparity

Income differences between cities and rural areas are dramatic in Sabah:

Median Household Income by Area Type (illustrative)

Kota Kinabalu (urban) residents earn >2x interior rural households. This gap drives rural-to-urban migration among young people and is a key inequality driver.

Source: DOSM & District Data

Reasons for the gap:

Job availability: Cities have government offices, retail, hotels, services; rural areas depend on farming, fishing, informal work.
Wage levels: Identical jobs (teacher, police, retail clerk) pay 30–50% more in urban areas.
Seasonality: Rural incomes are seasonal (agriculture) or informal (trading); cities offer year-round employment.
Education: Rural areas have lower average education, limiting access to better-paying jobs.
Cost of living: Rent/housing is higher in cities but other costs are lower due to competition and supply.

Modern KK residential middle-class apartment complex with Southeast Asian families — Urban middle-class housing — KK

Sabah smallholder farmer family in modest rural home reviewing finances — Rural farming household

Low-cost government housing in Sabah interior district with Southeast Asian residents — Interior rural low-income housing

Income mobility and inequality

Income mobility in Sabah is constrained by:

Education barriers: Higher education requires relocation to KL or Peninsular Malaysia, representing a 5–10 year investment away from earning.
Asset ownership: Land, capital, and business ownership are concentrated among a few families; access for outsiders is limited.
Connections: Government jobs (most stable, best-paying) rely on competitive exams but often favour connected candidates.
Brain drain: Young educated Sabahans migrate to KL/Singapore, reducing local entrepreneurship and innovation.

GINI coefficient for Sabah is ~0.378 (2022), indicating moderate inequality but below Peninsular Malaysia\u2019s ~0.41. However, true inequality may be higher due to unreported informal incomes and wealth (assets, land, businesses) not captured in income surveys.

Frequently asked questions

Q How does Sabah's household income compare to the national average?

Sabah's median household income is RM4,961/month (2022), roughly 29% below the national median of RM7,017. Mean household income is RM6,540 (vs national RM8,500+), ranking Sabah 14th of 16 states. The gap widens at the upper end: the top 20% (T20) earn RM32,000/month in Sabah vs RM45,000+ nationally. This reflects Sabah's lower-wage economy, limited high-income professional jobs, and brain drain of skilled workers to Peninsular Malaysia.

Q Why did Sabah's median income jump from RM3,883 (2019) to RM4,961 (2022)?

The increase of 28% over 3 years is partly real but largely methodological and statistical: (1) Revised PLI methodology (2021) — DOSM updated the Poverty Line Income calculation, affecting all income measurements; (2) COVID recovery wages — as lockdowns eased, informal sector incomes rebounded; (3) Government support schemes — social safety net expansion temporarily boosted lower-income households; (4) Export boom (2021–2022) — commodity prices spiked, raising wages in agriculture and related sectors. The true underlying growth is likely 10–15%, not the full 28% indicated by the headline figure.

Q What does the income gap between rich (T20) and poor (B40) mean?

B40 (bottom 40%) earn RM1,500–3,500/month in Sabah. T20 (top 20%) earn RM15,000–100,000+/month. The ratio is roughly 5–10:1. This inequality is significant: the top quintile earns 20x the income of the bottom 5%. GINI coefficient for Sabah is ~0.378 — lower than Peninsular Malaysia (0.41) but indicating substantial inequality. Causes include: (1) unequal education access; (2) asset ownership concentration (land, businesses); (3) public sector salary advantage; (4) limited economic mobility for rural and marginalized groups.

Q What is B40 and why is it important?

B40 (Bottom 40%) defines the lower-income segment: households earning up to roughly RM3,500–4,000/month (threshold varies by state and year). In Sabah, B40 encompasses ~1.5 million people in ~300,000 households. These are the primary targets of government social protection: BR1M/Sumbangan Asas Rahmah (cash transfers), subsidised utilities, and education assistance. B40 is a politically sensitive category — parties compete on social spending to this group. Understanding B40 demographics (ethnic, geographic, sectoral distribution) is critical for effective policymaking.

Q What causes the urban-rural income gap in Sabah?

Urban-rural gap is 2.1:1 in Sabah — KK residents earn ~RM6,200 median vs interior rural households ~RM2,900. Causes: (1) Job availability — cities have government offices, retail, hospitality, services; rural areas have farming, informal work, or no work; (2) Wage levels — urban wages are 30–50% higher for similar work; (3) Cost of living differences — rent is higher in cities but other costs are lower due to competition; (4) Education and skills — cities attract educated workers; rural areas have lower average education; (5) Informal economy — rural incomes are seasonal and unpredictable (agriculture, fishing, informal trade). Internal migration from rural to urban areas is ongoing, driven by this income gap.

Q How many people live below the poverty line in Sabah?

The poverty rate in Sabah is 7.4% (2024, DOSM), affecting approximately 280,000 people. Poverty line income threshold is approximately RM2,705/month. This is significantly higher than the national rate of 5.1% (Malaysia's poverty rate). Hardcore poverty (extreme poverty) affects 0.7% of Sabah (~26,000 people) earning below RM1,236/month (food poverty line). Sabah has the highest poverty rate of any Malaysian state. Regional variations: interior districts (Pensiangan, Nabawan, Tongod) have poverty rates exceeding 20%; urban KK has rates below 5%.

Q What social safety nets protect low-income Sabahans?

Main programmes: (1) Sumbangan Asas Rahmah (SAR) — monthly cash transfer to B40 households (RM100–300/month depending on eligibility); (2) SOCSO (Employees Provident Fund) — mandatory for formal sector workers, provides retirement, disability, survivor benefits; (3) Subsidised utilities — government subsidises electricity and water for lower-income households; (4) Education aid (BR1M-style) — cash for school uniforms, textbooks; (5) Health services — basic healthcare is free/subsidised at government clinics and hospitals. However, coverage gaps exist: informal workers (self-employed, plantations, domestic helpers) often fall outside these programmes. Adequacy is debated — SAR transfers cover 10–30% of basic needs, requiring supplementation.

Sources & References 5 sources

Last verified: 11 April 2026