Malaysia’s average household income and spending continued to rise in 2024, reflecting stronger earnings and economic recovery across most states, according to data from the Department of Statistics Malaysia (DOSM).

The median monthly household income grew 5.1% to RM7,017, while the mean income reached RM9,155, marking a 3.8% annual increase. On average, Malaysian households comprise 3.7 people with 1.8 income earners, drawing earnings from employment, self-employment, property, and transfers.

Urban households recorded a median income of RM8,139, compared to RM4,588 in rural areas, showing a continued but narrowing urban-rural gap.

Household Spending Rises To RM5,566 Per Month

The Household Expenditure Survey Report 2024 shows that the average monthly household spending increased to RM5,566, up from RM5,150 in 2022.

Four categories made up about two-thirds of total spending: housing, water, electricity, gas, and other fuels (23.5%); restaurants and accommodation (17.0%); food and beverages (15.7%); and transport (11.0%).

At the state level, W.P. Kuala Lumpur recorded the highest median income at RM10,805, followed by Putrajaya (RM10,769) and Selangor (RM10,726). States such as Johor (RM7,712) and Pulau Pinang (RM7,386) also exceeded the national median.

These figures indicate that households are earning and spending more, but also highlight the persistent influence of higher costs in urban centres.

Experts Say Real Purchasing Power Remains Uneven

While the data points to an improving financial outlook, economists and consumer advocates say many Malaysians continue to feel the pressure of rising living costs.

Economist Lee Heng Guie, executive director of the Socio-Economic Research Centre, said inflation-adjusted gains remain limited. He noted that when prices are taken into account, the real spending power of households may not have risen as much as the headline numbers suggest.

Lee added that wage growth is still uneven across industries, and lasting improvements must come from productivity-driven income growth rather than temporary aid. He also noted that programmes such as Budi95, which caps RON95 petrol at RM1.99 per litre for up to 300 litres, help temporarily but do not address long-term affordability challenges.

Federation of Malaysian Consumers Associations (FOMCA) chief executive Dr Saravanan Thambirajah agreed that many households still feel financially stretched.

For families in the B40 and M40 groups, essentials like food, transport, housing, and utilities continue to consume most of their income. He added that averages often obscure significant regional differences, with an M40 family in the Klang Valley facing more pressure than one in smaller towns.

Sustaining Income Growth Through Policy And Enforcement

Bank Muamalat Malaysia chief economist Dr Mohd Afzanizam Abdul Rashid said steady income growth, together with government assistance such as Sumbangan Tunai Rahmah (STR) and SARA, has helped support households amid moderate inflation.

However, he said more structural reforms are needed to raise earnings sustainably. Education, industrial upgrading, and productivity improvements remain key to increasing income in the long run.

He also called for stricter enforcement to prevent market practices such as hoarding or price manipulation, which can erode purchasing power.

Income Growth Positive, But Living Costs Still a Concern

Overall, Malaysia’s income growth suggests an improving financial landscape, supported by stronger employment and moderate inflation. Yet, experts agree that higher earnings do not always translate into improved financial comfort.

As Lee noted, the report is a positive sign that incomes are rising and inequality is narrowing, but the cost of living continues to grow faster than wages for many Malaysians.

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• TAGS:
• Cost Pressure
• Department of Statistics Malaysia
• DOSM
• Household Expenditure
• Household Income
• Income Growth
• Spending