A look at cost of living in Malaysia in 2023: DOSM

According to DOSM's inaugural Cost of Living Index 2023, the mean basic expenditure of decent living for households in Malaysia in 2023 stood at RM4,729, with a mean household size of 3.8 persons.

The Department of Statistics Malaysia (DOSM) presented its inaugural Cost of Living Indicators 2023 on 2 November 2024, revealing findings on:

1. Basic expenditure of decent living (PAKW)  
2. Cost of living index (KSH).  

Chief Statistician Malaysia Dato’ Sri Dr. Mohd Uzir Mahidin said the statistics can provide policymakers, academics and researchers in analysing policies related to the cost of living and the socio-economic situation the country. 

PAKW findings 

The statistics gathered for PAKW were segmented into the following: 

• Mean PAKW for household 
• Mean PAKW per capita for household 
• Mean PAKW for household size 

Mean PAKW for Household 

Results showed that the mean PAKW for households in Malaysia in 2023 was registered at RM4,729 with a mean household size of 3.8 persons. Urban areas held a higher PAKW than rural areas with the value of RM5,040 and RM3,631 respectively.  

Selangor owned the highest PAKW value of RM5,854 while Pahang held the lowest value of RM3,949. Within the district, Petaling registered the highest PAKW value of RM6,660 and Lubok Antu at RM2,516. 

Factors influencing these numbers are household size, age, gender and strata. Households with more members require a higher expenditure to meet both food and non-food needs. On average, the PAKW of the food category contributed RM1,693 (36%) while the non-food category contributed to RM3,037 (64%) of the country’s household. 

Following a similar trend, Selangor was recorded to have the highest mean food PAKW of RM1,881 and Terengganu the lowest value of RM1,810. A glance from the district level shows that Kinabatangan held the highest value at RM2,040 and the lowest being Kampar at RM1,314. 

The data was supported with the reasoning that age, gender and calorie needs of household members were the key influences of these numbers. 

In the non-food category, Selangor continued to hold the highest mean PAKW of RM2,263 while the state of Pahang was found to have the lowest mean of RM2,307. Across the district, Petaling had the highest non-food PAKW while Julau was recorded to have the lowest value of RM4,856 and RM1,027 respectively. 

Mean PAKW Per Capita for Household 

According to DOSM, the term above refers to the expenditure allocated for each individual within a household. Overall, the nation’s monthly PAKW per capita was recorded at RM1,314 with urban areas holding a higher value (RM1,423) than rural areas (RM927). The figures were gathered according to the findings that the average household size in urban areas stood at 3.7 persons and 4 persons in rural areas. 

The federal territory of Kuala Lumpur registered to have the highest PAKW per capita of RM1,755 and Kelantan holding the lowest value of RM1,018. Within the district, Petaling recorded the highest value of RM2,031 while Lojing was at its lowest of RM670. 

In the food category, an average of RM455 (35%) is amounted to this area of data with urban areas holding a higher value than rural areas of RM467 and RM411 respectively. Selangor remains the highest mean per capita monthly PAKW for food at RM507 while Kelantan holds the lowest value of RM388. Petaling continues to be the district to hold the highest value of RM535 while Kalabakan holds the lowest value of RM319. 

The report attributes the statistics to the age and gender of household members, with teenagers and adults requiring higher intakes compared to infants, children and elderly. Additionally, males generally require higher calorie intake than females. 

In the non-food category, the component contributed RM859 (65%) of the total per capita monthly PAKW for Malaysian households. Once again, urban areas valued higher than rural areas at RM956 and RM516 respectively. 

Within the state, Kuala Lumpur was recorded to hold the highest mean per capita monthly PAKW of RM1,288 and Kedah valued at the lowest of RM625. At the district level, Petaling is at the highest value of RM1,496 while Lojing at RM288. 

Mean PAKW by household size 

At a national level, the mean monthly PAKW average values for the following household sizes are: 

• Individuals living alone: RM1,632 
• Household with 2 members: RM2,876 
• Household with 3 members: RM4,041 
• Household with 4 members: RM5,161 
• Household with 5 members: RM6,032 
• Household with 6 members or more: RM7,510 

KSH findings 

The KSH indicator provides the amount of expenditure required by households to meet a living standard that is deemed as reasonable. It is designed to provide an overview of a meaningful life that meets the needs and wants as well as the ability to participate in society, also known as 'decent life'.  

According to the technical notes of the report, KSH measures the change in the percentage of purchase costs over time for goods and services in the 'basket' of PAKW which represents the average pattern of purchases by a group of 30% to 80% of households at a given time period. 

The term 'basket' refers to the goods and services that have a relatively constant or a constant quality and quantity that can be measured continuously in the market over time. 

Overall, the country was recorded at 103.1 index points with half the states surpassing the national index value. The top three countries with the highest index points are Putrajaya (104.6), Perlis (103.9) and Johor (103.5). Meanwhile, Kedah, Sabah and Kelantan belong to the bottom 3 holding 102.7, 102.6 and 102.2 index points respectively. 

By region, Raub was recorded to have the highest index points of 104.4 while Perak Tengah held the lowest of 101.2 index points. 

Through the extensive data shared, policymakers are expected to formulate more effective economic strategies to improve the wellbeing of the citizens. 

---

READ MORE: New cost of living adjustment and minimum pension rate under Socso's schemes and benefits in Malaysia