17th October 2025 - 2 min read
Malaysia recorded 414,918 live births in 2024, the lowest since 1980 and a 9% drop from 2023, according to Vital Statistics [PDF] released by the Statistics Department (DOSM) on 16 October.
The total fertility rate fell to 1.6 children per woman, down from 1.7 in 2023, and has remained below the replacement level of 2.1 since 2013.
The demographic shifts come amid concerns about Malaysia’s rising cost of living, which economists and consumer advocates say continues to outpace wage growth for many households.
Recent data shows the financial strain is particularly acute for middle-income earners, according to the RinggitPlus Malaysian Financial Literacy Survey (RMFLS) 2025.
Among those earning RM5,000 to RM10,000 monthly, the proportion who save RM1,001 to RM1,500 per month fell to 23% (from 29% in 2024), while those saving below RM500 monthly rose to 39% (from 31% in 2024).
Financial pressures are forcing difficult trade-offs. The RMFLS found that 22% of insurance policyholders either switched to cheaper plans, reduced coverage, or cancelled policies altogether due to premium increases in the past 12 months.
Lower-income earners were hit hardest, with 26% of those earning below RM2,000 monthly cutting insurance coverage, followed by 25% earning RM2,000 to RM4,999, and 16% earning RM5,000 to RM9,999.
Currently, 43% of Malaysians have no medical insurance coverage, while only 48% hold life insurance or Takaful policies.
These financial pressures may help explain the declining birth rate, as Malaysians adjust spending across multiple areas of their lives.
The RMFLS found widespread belt-tightening among middle-income earners. Among those earning RM5,000 to RM10,000 monthly, 60% report spending less on leisure activities, 59% are eating out less frequently, and 43% have reviewed and cut subscriptions.
Beyond cutting expenses, Malaysians are also seeking additional income. Across all income levels, 39% have started exploring freelance or side income opportunities in response to economic uncertainties.
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Iman writes about personal finance with curiosity. She is interested in the stories behind money, the hesitation around big decisions, and the small habits that shape financial futures. Off the clock, she is either dissecting a film or climbing her way up the leaderboard in her favourite games.
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