DOSM: Average Household Income Increased To RM8,479 In 2022

Alex Cheong Pui Yin

31st July 2023 - 3 min read

The average household income in Malaysia has increased by 2.4% from RM7,901 in 2019 to RM8,479 in 2022, said the Department of Statistics Malaysia (DOSM). This was revealed in the latest Household Income Survey Report and Household Expenditure Survey Report (HIES) 2022 – surveys which are conducted twice every five years.

Meanwhile, the median household income in the country is revealed to have reached RM6,338 in 2022, with a moderate annual growth rate of 2.5%. This is in comparison to RM5,873, which was recorded back in 2019.

“The income value takes into consideration the mean household size of 3.8 persons, with an average of 1.8 income earners. This household income comprises paid employment, self-employment, income from investment, and current transfers received,” said the chief statistician of DOSM, Datuk Seri Mohd Uzir Mahidin.

The survey data also revealed that four states had managed to record an average household income that is above the national level of RM8,479, namely Putrajaya (RM13,473), Kuala Lumpur (RM13,325), Selangor (RM12,233), and Johor (RM8,517).

Additionally, a total of six states were able to top the national median income level of RM6,338. These included Kuala Lumpur (RM10,234), Putrajaya (RM10,056), Selangor (RM9,983), Labuan (RM6,904), Johor (RM6,879), and Penang (RM6,502). Of these states, Selangor recorded the highest median income growth at 6.5% annually from 2019 to 2022.

Aside from announcing the average and median household income statistics, Datuk Seri Mohd Uzir said that the DOSM had also taken the initiative to analyse the survey findings from the perspective of disposable income. This is in line with the government’s intention to use disposable income in its approach to help and provide subsidies to the people moving forward.

Accordingly, it was found that the average monthly disposable household income had increased by 1.7% from RM6,764 in 2019 to RM7,111 in 2022. The median monthly disposable household income also showed a 1.9% increase from RM5,116 in 2019 to RM5,413 in 2022. “Disposable household income constituted 83.9% of the total gross household income,” the survey further showed.

In terms of household income distribution, the report indicated that the B40 income threshold – which covers 3.16 million households – stood at RM5,249. The M40 group’s income, on the other hand, ranged between RM5,250 to RM11,819. As for the T20 group, the income threshold exceeds RM11,820.

“The T20 group accounted for 46.3% of the total household income distribution, a slight decrease from 46.8% in 2019. The M40 group accounted for 37.6%, while the B40 group represented 16.1%, slightly up from 16% in 2019,” said Datuk Seri Mohd Uzir, adding that the poverty line income (PLI) rose from RM2,208 in 2019 to RM2,589 in 2022. The PLI value of food also rose from RM1,169 in 2019 to RM1,198 in 2022.

Meanwhile, on expenditure, DOSM noted that the average household in Malaysia spent RM5,150 per month in 2022 – going mostly to four main necessities. These include utilities like water, electricity, and gas (23.2%); non-alcoholic food and beverage (16.3%); restaurant and hotel (16.1%); and transportation (11.3%).

For context, the last Household Income Survey Report and Household Expenditure Survey (HIES) was conducted and published back in 2019. Among other things, HIES 2019 had spurred DOSM to introduce new income definitions for B40, M40, and T20 – with a total of 10 sub-categories – to allow for better implementation of targeted assistance programmes by the government.

(Sources: Malay Mail, DOSM [1, 2])

0 0 votes

Article Rating

Alex Cheong Pui Yin

Previously covered recruitment-related stories and had a short stint as a copywriter for the property industry. She subsequently developed an interest in investment and robo-advisors.

See all articles