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Malaysia’s average monthly household expenditure has increased to RM4,534 last year from RM4,033 in 2016, according to statistics from the Department of Statistics Malaysia.
It’s a 3.9% increase, which DOSM said in their Household Expenditure Survey Report 2019 is in tandem with the 4.2% increase in household income within the same period.
Meanwhile, the median monthly household expenditure registered RM3,654 in 2019 compared to RM3,314 in 2016.
In urban areas, household expenditure has increased by 3.7% per year from RM4,402 to RM4,916.
As for rural areas, the increase is by 3.6% annually from RM2,725 to RM3,038 for the period between 2016 to 2019.
This indirectly reflects that the mean household consumption expenditure in urban area was 1.6 times higher than the mean household expenditure in rural area.Department of Statistics Malaysia
DOSM added that the increase in expenditure in urban areas is in line with the increase in urban households’ average income which was 1.7 times higher (RM8,635) than rural households (RM5,004).
Expenditure by state
The Department also noted that cost of living varies between states but there are a few states that have higher household expenditures compared to the national average (RM4,534):
The top six are:
- W.P. Putrajaya (RM7,980)
- W.P. Kuala Lumpur (RM6,913)
- Selangor (RM5,830)
- Melaka (RM4,955)
- Johor (RM4,793)
- Penang (RM4,630).
Spending habits differ between rural and urban
The Department said the composition of expenditure groups shows differences in expenditure preferences by level of urbanisation.
Households in the urban areas recorded the highest percentage of expenditure in housing, water, electricity, gas & other fuel at 24%. Meanwhile, the highest expenditure of households in rural areas was in the food & non-alcoholic beverages expenditure group (24.4%).Department of Statistics Malaysia
As for total household expenditure, people spend mostly on basic necessities which contributes 68.3% to the total household consumption expenditure.
Below is the breakdown:
- Housing water, electricity, gas & other fuels (23.6%)
- Food & nonalcoholic beverages (17.3%)
- Restaurants & hotels (13.9%)
- Transport (13.5%)
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