Poorest households left with just 1.8pct income buffer: KRI
KUALA LUMPUR: Malaysia’s poorest households are left with just 1.8 per cent of gross income after consumption expenses in 2024, down sharply from 10.8 per cent in 2019, as rising spending eroded their financial buffers.
Malaysia's poorest households have only 1.8% of their gross income left after spending on living costs in 2024, a sharp drop from 10.8% in 2019. The shrinking financial buffer makes it harder for these households to handle rising costs or save money. In 2024, the median monthly household expenditure hit RM4,758, up 5.3% year-over-year, while median household income grew by 5.1%, reaching RM7,017 annually.
The bottom 10% of households saw their spending rise by 21.3% between 2019 and 2024, outpacing the 15% increase among the bottom 70%. The top 10% of earners had hardly any change in their spending. The report notes that the income buffer doesn't account for taxes, loan repayments, or money sent to other households, which would make it even smaller.
The report also highlights other pressures, like Malaysians spending more on eating out and a growing obesity rate. KRI argues that household wellbeing should be measured beyond just money, considering health and other factors that impact quality of life.
Written by urgent.news from New Straits Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
