Malaysia's poorest families left with only 1.8% of income after expenses

KRI's latest household wellbeing study shows that Malaysia's poorest households have a residual income of only 1.8% of gross earnings after consumption costs in 2024, a steep decline from 10.8% in 2019. Median monthly expenditure reached RM4,758, growing at an annualised 5.3% since 2022, whereas median income rose 5.1% to RM7,017. Spending among the bottom decile jumped 21.3% between 2019 and 2024, and the bottom 70% saw increases above 15%, while the richest 10% saw little change.

The report warns that the narrow buffer leaves low-income families vulnerable to further cost hikes and limits savings, especially since the calculation omits taxes, loan payments and inter-household transfers. Health pressures add to the strain, with average monthly dining-out costs of RM902.70 surpassing home-food expenses, and more than half of adults classified as overweight or obese in 2023.