Did Disposable Income Rise Nationwide?

 

Malaysia’s average disposable household income rose by 3.2% to RM7,584 in 2024, according to the latest Household Income and Expenditure Survey (HIES) 2024 Report. The median income rose by 5.1% to RM5,999. This represents 82.8% of total gross household income, indicating households’ ability to meet essential expenditure needs. The report also highlighted that this rise in disposable income was accompanied by a gradual improvement in income distribution. 

Households in the Bottom 40 (B40) group, comprising 3.28 million households, had income of up to RM5,858, according to the report. 

It also noted that the median household income in Malaysia reached RM7,017 in 2024, growing by 5.1% annually, while the mean household income rose by 3.8% to RM9,155. Income growth varied by state, reflecting diverse economic conditions, the report added. 

Six states recorded median household incomes above the national level, with Kuala Lumpur at RM10,802, followed by Putrajaya (RM10,769), Selangor (RM10,726), Johor (RM7,712), Penang (RM7,386) and Labuan (RM7,383). Penang recorded the highest annual growth rate at 6.4% between 2022 and 2024, according to the report. 

The report also noted that the B40 group’s share of total national income rose slightly to 16.7%, up from 16.3% in 2022. In contrast, the Top 20% (T20), who earned RM12,680 and above per month, saw their share decline to 45.1%, down from 46.3%. The Middle 40% (M40), earning between RM5,860 and RM12,679, made up a significant portion of the remaining income share. 

The Gini coefficient improved to 0.390 in 2024, compared to 0.404 in 2022, signalling a narrowing of income inequality. The national absolute poverty incidence decreased from 6.2% in 2022 to 5.1% in 2024, representing about 416,000 households. 

It all sounds too good! If you drill-down there are probably several issues by district, demographic distribution and intra-racial inequalities. Some think-tank should review the data and give a more balanced picture! 

Reference:

Disposable income rises nationwide, Rahimy Rahim, Khoo Jian Teng, Ragananthini Vethasalam, The Star, 9 October 2025