More than seven in 10 Malaysian formal-sector employees are earning RM5,000 or less per month, according to newly highlighted wage data that has reignited concerns over rising living costs and household financial resilience.
Chief Economist of Bank Muamalat Malaysia Berhad, Dr Mohd Afzanizam Abdul Rashid, said 70.2 per cent of formal-sector workers were earning monthly wages of RM5,000 and below as of December 2025.
The figures have sparked fresh discussions about whether salary growth is keeping pace with the increasing cost of living, particularly in major cities where housing, transport and childcare expenses continue to rise.
Dr Mohd Afzanizam noted that while a monthly income of RM5,000 may appear reasonable on paper, many households could still face financial pressure after accounting for essential commitments such as rent, food, transportation, loan repayments and family expenses.
He said the challenge is particularly significant for families with dependants living in urban centres, where maintaining a comfortable standard of living often requires substantially higher spending.
According to his analysis, a married couple aged between 18 and 29 with two young children living in Kuala Lumpur would require approximately RM6,183 per month to cover basic living expenses.
In contrast, a similar household residing in Kuala Terengganu would need around RM3,845 monthly, highlighting the significant impact location has on household purchasing power and disposable income.
The latest Employee Wages Statistics released by the Department of Statistics Malaysia (DOSM) also revealed that 8.4 per cent of formal-sector employees earned less than RM1,700 a month as of December 2025.
The report further showed that workers within the bottom 10 per cent wage bracket received monthly salaries of RM1,700 or less.
At the opposite end of the scale, employees in the top 10 per cent income bracket earned at least RM11,122 per month.
Beyond income levels, Dr Mohd Afzanizam stressed that financial resilience is also influenced by how individuals manage their spending, savings and debt obligations.
He pointed out that personal loans continue to be a leading contributor to bankruptcy cases in Malaysia, followed by business financing facilities, vehicle hire-purchase loans, housing loans and credit card debt.
The findings have renewed debate over wage adequacy in Malaysia, particularly among young workers and urban families navigating higher living expenses and growing financial commitments.
Economists have increasingly highlighted the need for stronger income growth and improved financial planning to ensure households are better equipped to cope with economic challenges in the years ahead.
