Updated: August 2026
No single state is the cheapest across all household sizes. Kelantan and Sarawak have the lowest PAKW scores for one-person households. Kelantan ranks lowest for two-person households, while Sabah is cheapest for three- and four-person households. Kedah is the only state to rank among the three cheapest at every household size.
These figures come from the Department of Statistics Malaysia (DOSM) Cost of Living Indicators 2024, released in December 2025. The report uses the Basic Expenditure of Decent Living (PAKW) index, short for Perbelanjaan Asas Kehidupan Wajar, to compare the monthly expenditure needed to maintain a decent standard of living in different locations.
How The PAKW Index Works
DOSM uses Kuala Lumpur as the benchmark, assigning it a score of 100. Other locations are measured against it. A lower score means less expenditure is needed than in Kuala Lumpur to maintain the same defined standard of living, while a higher score means more is needed.
For example, Kelantan has a PAKW score of 53.7 for a one-person household. Compared with Kuala Lumpur's score of 100, the expenditure needed for the defined standard of living is about 46.3% lower. If the benchmark were RM1,000 in Kuala Lumpur, the equivalent expenditure in Kelantan would be about RM537.
“Decent” has a specific meaning in the PAKW index. DOSM calculates the expenditure needed for food that meets the Ministry of Health's nutritional requirements, essential non-food items and services, and spending that allows households to participate in normal social activities. The measure is broader than a poverty threshold, but it is not intended to represent a comfortable or affluent lifestyle.
The PAKW index measures expenditure, not quality of life. A lower score indicates that the defined standard of living costs less in that location. It does not mean the location offers a better quality of life.
Household Size Changes The Ranking
The cheapest state changes depending on household size.
For one-person households, Kelantan and Sarawak share the lowest PAKW score at 53.7, followed by Kedah at 56.6. For two-person households, Kelantan ranks lowest at 58.0, followed by Kedah at 58.7 and Perlis at 58.8.
For larger households, Sabah has the lowest PAKW score at 59.6 for three-person households and 59.4 for four-person households. Perlis ranks second in both categories, while Kedah ranks third for three-person households and second for four-person households.
The higher-cost states also change slightly. Penang ranks third among the states for one-, two-, and three-person households, but Melaka takes third place for four-person households.
The differences show why household size matters when comparing living costs. A state that ranks cheapest for a single person may not have the lowest PAKW score for a family of four.
Which States Need The Least Spending
Selangor has the highest PAKW score among states at every household size. The table below shows how the highest- and lowest-cost states compare.
| Household size | Highest three states | Lowest three states |
| One person | Selangor 92.0, Penang 84.2, Putrajaya 83.1 | Kelantan 53.7, Sarawak 53.7, Kedah 56.6 |
| Two people | Selangor 91.4, Putrajaya 84.6, Penang 84.6 | Kelantan 58.0, Kedah 58.7, Perlis 58.8 |
| Three people | Selangor 92.4, Putrajaya 84.8, Penang 83.7 | Sabah 59.6, Perlis 60.6, Kedah 60.8 |
| Four people | Selangor 91.3, Putrajaya 84.7, Melaka 83.0 | Sabah 59.4, Kedah 60.5, Perlis 60.9 |
Kuala Lumpur is the benchmark at 100 and does not appear in either column. Source: DOSM Cost of Living Indicators 2024, released 24 December 2025. Selangor's score ranges from 91.3 to 92.4 across the four household sizes, making it the highest-cost state in the index. Its score is still below Kuala Lumpur's benchmark of 100.
State Averages Can Hide Big District Differences
State-level figures can hide large differences between districts within the same state. DOSM also publishes PAKW figures for every administrative district, giving a more detailed picture of living costs.
Petaling in Selangor is the only district with a PAKW score above Kuala Lumpur's benchmark for every household size. Its score ranges from 103.3 for a one-person household to 104.8 for a two-person household.
At the lower end, 91 districts have scores below 50, meaning the expenditure needed to maintain the defined standard of living is less than half the Kuala Lumpur benchmark. Four districts record scores below 30.
Pantu in Sarawak has the lowest PAKW score for a one-person household at 27.8, followed by Lingga at 28.3 and Sebuyau at 29.1.
Selangor has the highest PAKW score among states, but not every district in Selangor is as expensive as Petaling. Sarawak shows the opposite pattern. It has one of the lowest state-level scores for a one-person household, yet its districts span a much wider range of costs.
For anyone comparing where to live, the district-level figure can be more useful than the state average because it reflects the specific area being considered.
Shah Alam Is The Most Expensive State Capital
Shah Alam has the highest PAKW score among Malaysia's state capitals. It scores 99.8 for a one-person household, just below Kuala Lumpur's benchmark of 100, and moves above the benchmark for two-, three-, and four-person households.
| State capital | One-person household | Two-person household | Three-person household | Four-person household |
| Shah Alam | 99.8 | 100.1 | 100.2 | 100.3 |
| Johor Bahru | 92.9 | 92.6 | 92.5 | 92.4 |
| George Town | 90.7 | 91.3 | 92.6 | 91.9 |
| Kuala Terengganu | 68.2 | 69.9 | 71.2 | 72.1 |
| Alor Setar | 68.3 | 69.7 | 70.4 | 71.4 |
| Kota Bharu | 61.5 | 62.9 | 64.0 | 64.6 |
| Kangar | 59.0 | 58.8 | 59.1 | 59.2 |
Kuala Lumpur is the benchmark at 100. Rows are ordered by the one-person household score. For three-person households, George Town (92.6) ranks above Johor Bahru (92.5). Source: DOSM Cost of Living Indicators 2024, Table 1.3, released 24 December 2025.
Johor Bahru scores 92.9 for a one-person household, making it relatively close to Kuala Lumpur on the index. Moving there purely to reduce living costs may not make as much difference as expected.
Kangar is the cheapest state capital across all four household sizes, with scores between 58.8 and 59.2. Kota Bharu and Alor Setar are the next two lowest-cost capitals, although their order changes depending on household size.
What The Index Doesn’t Tell You
A lower PAKW score does not automatically mean you will have more money left over each month. The index measures the expenditure needed for a decent standard of living, but it does not measure how much households earn.
DOSM's Household Income Survey Report 2024 puts Malaysia's median monthly household income at RM7,017. Kuala Lumpur had the highest median household income at RM10,805, while Kelantan recorded RM4,083.
Kelantan's one-person PAKW score of 53.7 is 46.3% below Kuala Lumpur's benchmark of 100. Its median household income, however, is about 62.2% lower than Kuala Lumpur's.
This matters when you're considering a move. Someone who can keep a Kuala Lumpur-level salary after moving to Kelantan could have more money left after paying for everyday expenses. Someone who takes a lower-paying job may see less of a financial benefit despite the lower cost of living.
The PAKW index also does not capture every expense associated with living in a particular location. A cheaper area may involve longer journeys to work or greater reliance on a car, while access to services such as specialist healthcare can vary between locations.
Use the PAKW score to compare living costs across locations, then compare it with your income and spending to decide whether a move would make financial sense.
Calculate The Cost For Your Own Household
The PAKW index gives you a relative score, but DOSM's MyPAKW calculator can estimate the monthly expenditure for a specific household and location.
MyPAKW calculator lets you enter your location and household details to get a monthly PAKW estimate. Because the calculator works at the district level, you can compare the specific areas you're considering rather than relying only on the state average.
For example, if you're deciding between two districts in the same state, enter both locations and compare their monthly estimates. You can then compare the result with what you currently spend each month.
The difference gives you a starting point for working out whether relocating could reduce your household expenses. Your actual budget may still differ because the PAKW figure is an estimate based on DOSM's defined basket of expenditure.
If you're moving for work, compare the estimate against your expected take-home pay in the new location as well. A lower monthly expenditure may not translate into savings if your income falls by more than your expenses.
So Where Should You Move?
A lower PAKW score does not necessarily mean a location will be cheaper for your household. Your actual costs will depend on your income, housing, and spending, which may change after you relocate.
If you're considering a move, start with the PAKW estimate for the specific district rather than the state average. Compare it with what you spend each month now and the income you expect after moving. Keeping the same salary while spending less could leave more money available for savings. Taking a lower-paying job could reduce that difference.
Housing costs can also change the calculation, particularly if you're moving to buy a home. A PAKW score does not show whether a property is affordable on your income, so include your expected home loan repayment when working out your new monthly budget.
If you're planning to buy, you can compare home loan rates from Malaysian banks and use the home loan calculator to estimate your monthly repayment. For ongoing household costs, our TNB bill explainer explains how electricity charges work, while the Selangor water tariff guide covers tiered water billing.
Sources: DOSM Cost of Living Indicators 2024, released 24 December 2025; DOSM Household Income Survey Report 2024. PAKW index values use Kuala Lumpur as the benchmark at 100.
