By Media Selangor Team
SHAH ALAM, July 14 — Malaysia’s cost of living index rose to 105.1 points in 2024 from 103.1 points in 2023.
The index, which measures changes in household living expenses, recorded a baseline of 100 points at the national level in 2022.
Economy Minister Akmal Nasrullah Mohd Nasir said Putrajaya, Kuala Lumpur and Selangor recorded the highest household cost of living index at 106.3 points, 106.1 points and 105.4 points, respectively.
“Meanwhile, Kedah and Kelantan recorded the lowest cost of living index at 104.6 points and 103.9 points, respectively,” he said in a parliamentary written reply published on July 13.
Akmal was responding to a question from Datuk Dr Ahmad Marzuk Shaary (PN-Pengkalan Chepa), who asked to what extent the government had conducted a longitudinal study on the gap between the growth in real household income and the rising cost of living since 2018, as well as the structured interventions planned to address the growing number of working poor.
Based on the findings of the 2024 Household Income and Expenditure Survey (HIES), the average household income increased from RM8,479 in 2022 to RM9,155 in 2024.
The increase represents annual growth of 3.8 per cent.
Akmal said average household expenditure also rose from RM5,150 to RM5,566 during the same period, representing annual growth of 3.9 per cent.
“Overall, the Poverty Line Income (PGK), Basic Living Expenditure (PAKW) and Cost of Living Index (IKSH) data from the Department of Statistics Malaysia (DOSM) confirm that the rising cost of basic goods and services is affecting household living expenses, particularly among the low-income group and the working poor,” he said.
Akmal added that the national poverty line income increased from RM2,589 in 2022 to RM2,705 in 2024, reflecting the higher basic cost of living.
“At the same time, the national average PAKW increased from RM4,729 per month to RM4,846 per month, with a wider gap between urban areas (RM5,169) and rural areas (RM3,712) in 2024, indicating that the cost of living is higher in urban areas,” he said.
He said the government, through the 13th Malaysia Plan (MP13), would continue to focus on addressing the cost of living through a two-pronged strategy: raising incomes and curbing increases in the prices of goods and services.
According to Akmal, the strategy will be implemented over the short, medium and long term.
For the short term, under Budget 2026, initiatives to address the cost of living, poverty and inequality include Sumbangan Tunai Rahmah and Sumbangan Asas Rahmah, with allocations totalling more than RM15 billion.
He said assistance programmes under the Social Welfare Department for poor families, persons with disabilities and senior citizens had also been allocated RM3.1 billion, among other measures.
“For the medium and long term under MP13, the government is focusing on efforts to increase incomes and reduce structural costs.
“These efforts include creating quality jobs, implementing the Progressive Wage Policy, increasing the minimum wage from RM1,500 to RM1,700, strengthening skills and talent development, boosting workforce productivity and carrying out education reforms,” he said.
