Business

Cost of living in the Klang Valley up by 6.7 per cent

The Klang Valley continues to be Malaysia's most expensive region, while Alor Setar is the least expensive city.

Updated 1 year ago · Published on 13 Dec 2024 8:47AM

Cost of living in the Klang Valley up by 6.7 per cent

THE average cost of living for residents in the Klang Valley increased by 6.7 per between 2022 and 2024, according to the Employees Provident Fund's (EPF) Belanjawanku 2024-2025 guide.

The Business Times reported that the Klang Valley continues to be the most expensive region in Malaysia.

It saw a notable increase in living expenses for the period compared with Alor Setar, the least expensive city in the country.

The guide's review of nine types of households showed that increases ranged from 2.1 per cent to eight per cent during the period.

The households included single public transport users, couples with children and seniors.

According to the EPF Belanjawanku, the cost of living for a single person who owns a car in the Klang Valley increased by 7.7 per cent between 2024 and 2025 compared with 2022 and 2023.

Those in that category now need RM2,800 per month versus RM2,600 previously, mainly due to the rise in car prices and manpower to maintain the vehicle.

The majority of bankruptcy cases involve those aged 25 to 44

"Nearly 55.6 per cent of bankruptcy cases administered by the Department of Insolvency between 2020 and October 2024 involved individuals aged 25 to 44.

"During this period, 16,897 individuals in this age group out of a total of 30,398 cases were declared bankrupt," said SWRC director Professor Norma Mansor during a briefing on the guide, highlighting the need for personal and family budgeting.

Low financial literacy, rising cost of living and structural wage challenges have been identified as reasons for the low financial well-being of Malaysians.

According to the guide, a married couple with two children in the Klang Valley saw an eight per cent increase in estimated monthly budget to RM7,440 in 2024/2025 versus RM6,890 in 2022/2023.

Data from SWRC showed that couples with two children would need about RM1,210 for childcare in the Klang Valley, while those with a child need RM670.

A senior couple in the Klang Valley will need a household budget of RM3,390, up 5.6 per cent from RM3,210 previously.

A single senior individual now needs RM2,690, compared with RM2,520 in 2022/2023. - December 13, 2024

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