Malaysia’s rising cost of living continues to place financial strain on low-income families and the working poor, even as average household incomes show steady growth, according to Economy Minister Datuk Seri Akmal Nasir Nasrullah.
In a written parliamentary reply to Pengkalan Chepa MP Datuk Dr Ahmad Marzuk Shaary, Akmal Nasir revealed that findings from the Household Income and Basic Amenities Survey 2024 showed average monthly household income increased from RM8,479 in 2022 to RM9,155 in 2024, representing an annual growth rate of 3.8 per cent.
Despite the increase in earnings, he said data from the Department of Statistics Malaysia (DOSM) confirmed that higher prices for essential goods and services continue to drive up living costs, with the greatest impact felt by lower-income households and the working poor.
The national Poverty Line Income (PLI) rose from RM2,589 in 2022 to RM2,705 in 2024, reflecting higher basic living expenses. Meanwhile, the average Cost of Living Expenditure (PAKW) increased from RM4,729 to RM4,846 per month over the same period.
Household spending also climbed, with average monthly expenditure rising from RM5,150 in 2022 to RM5,566 in 2024, marking an annual increase of 3.9 per cent.
Akmal Nasir said urban households faced significantly higher living costs, requiring an average monthly expenditure of RM5,169, compared with RM3,712 for households in rural areas.
Among the states and federal territories, Putrajaya recorded the highest Household Cost of Living Index (IKSH) at 106.3 points, followed closely by Kuala Lumpur (106.1) and Selangor (105.4). Kelantan (103.9) and Kedah (104.6) posted the lowest cost-of-living indices nationwide.
To help ease the financial burden on Malaysians, Akmal Nasir said the government will continue implementing measures under the 13th Malaysia Plan (2026–2030) through a two-pronged strategy focused on increasing household incomes while keeping the cost of goods and services under control.
As part of the short-term initiatives under Budget 2026, the government will continue programmes such as Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA) with combined allocations exceeding RM15 billion. A further RM3.1 billion has been earmarked for welfare assistance under the Social Welfare Department to support poor families, persons with disabilities and senior citizens.
Additional efforts include the RM67 million Price Standardisation Programme for Sabah, Sarawak and Labuan, the RM600 million Payung Rahmah initiative, as well as targeted fuel and utility subsidies using the Padu database to ensure assistance reaches eligible recipients.
Looking ahead, Akmal Nasir said the government will continue tackling structural cost pressures by creating higher-quality jobs, expanding the Progressive Wage Policy, improving workforce skills and productivity, strengthening talent development and introducing education reforms.
He added that the recent increase in Malaysia’s minimum wage from RM1,500 to RM1,700 forms part of the government’s broader strategy to improve workers’ incomes and enhance long-term economic resilience.
