Malaysia’s Cost of Living!

According to the Statistics Department, it costs around RM1,487 for a household with an average of 3.2 members to meet the required monthly nutrient intake standards set by the Health Ministry. This is cheaper than in Melaka (RM1,810), Johor (RM1,751), Sarawak (RM1,795), Sabah (RM1,747) and Pahang (RM1,642). The state with the highest monthly food expenditure per household is Selangor at RM1,881, with Terengganu coming in second at RM1,842.

However, these figures only measure food items. When the total cost of food and non-food items is calculated, the Klang Valley, comprising Kuala Lumpur and Selangor, has the highest monthly cost of living.

 

Source: https://en.wikipedia.org

These figures are available through the Statistics Department’s newly launched “Basic Expenditure for Decent Living Indicator or PAKW”. The PAKW allows the public to measure monthly expenditures for essential goods and services according to geography, household size and age group. This new tool can offer a clearer perspective for families planning their monthly budgets and for policymakers seeking to address regional disparities.

While debt levels can vary greatly, the data can still provide a guide to general averages for individuals’ expense estimation or benchmarking purposes; and if data variation is large, the distribution of the data can also be published for users’ reference. To improve the tool’s information value, the inclusion of more detailed expense categories within food and non-food expenses, such as discretionary food, medical and education.

While the PAKW offers a robust foundation for assessing living costs, the tool could include non-essential but common expenditures like entertainment, dining out, or personal development such as education courses and hobbies. While these may not be ‘essential’, they are often part of a household’s spending and contribute to the overall quality of life.

The tool could be more interactive and dynamic by including real-time updates or quarterly revisions that reflect changes in prices due to inflation, local economic conditions, or sudden shifts like those seen during a pandemic. 

With enhancements like expanded expenditure categories, dynamic updates and a user-friendly interface, the tool could become a more powerful instrument for understanding the economics of daily life in Malaysia.

Reference:

Decoding Malaysia’s cost of living, Doreenn Leong, The Star, 11 November 2024