Malaysians See Surplus of Income Over Consumption Spending?

 

Malaysians begin to record a surplus of income over consumption spending at 29, according to the National Transfer Accounts (NTA) Malaysia 2022 report. Chief statistician Uzir Mahidin said the surplus peaks at age 44, reaching RM14,523 per capita annually, before gradually declining and returning to a deficit at around age 56. The findings are outlined in the NTA Malaysia 2022 report.

For 2022, national consumption spending totalled RM1.24 trillion, while labour income stood at RM764 billion, resulting in a Lifecycle Deficit (LCD) of RM477 billion. The deficit was financed through asset-based reallocations amounting to RM491 billion, equivalent to 103.1 percent of the deficit.

Source: https://en.wikipedia.org

In terms of income, average annual labour income per capita rose with age, peaking at 49 at RM48,379. At the same age, self-employment income also reached its highest level at RM13,042 per capita. Average consumption per capita was RM37,947. Those aged 60 to 64 recorded higher spending at RM50,429, while individuals aged 65 and above spent RM51,211. In contrast, children under four recorded lower consumption at RM26,313 per capita.

Household spending was largely driven by the private sector at RM31,564 per capita, while public sector consumption stood at RM6,382. Public sector provides targeted support across age groups, particularly in financing education for children and prioritising healthcare for the elderly.

NTA is an intergenerational economic framework used to measure how resources such as production, consumption, income and transfers are generated and distributed across different age groups. The framework is adapted from a United Nations manual to analyse the impact of demographic changes on future income and consumption patterns.

Reference;

Report: M'sians see surplus of income over consumption spending from age 29, Bernama/Malaysiakini, 29 April 2026