PUTRAJAYA – The average household income in Malaysia increased by 2.4% in 2022 to RM8,479 compared with RM7,901 in 2019, according to the Household Income and Household Expenditure Survey 2022.
Chief Statistician Datuk Seri Mohd Uzir Mahidin said the report, released by the Statistics Department, showed that the median household income had increased moderately by 2.5% per year to RM6,338 in 2022 compared with RM5,873 in 2019.
“This income value takes into consideration the average household size of 3.8 people, with an average of 1.8 income earners,” he said at the presentation of the survey here today, which was also attended by Economic Minister Rafizi Ramli.
Uzir said the household income comprised paid employment, self-employment, income from investment, and current transfers received.
He said that the states that achieved median income above the national level of RM6,338 were Kuala Lumpur (RM10,234); Putrajaya (RM10,056); Selangor (RM9,983); Labuan (RM6,904); Johor (RM6,879); and Penang (RM6,502).
Four states also recorded average household incomes above the national level of RM8,479, namely Putrajaya (RM13,473); Kuala Lumpur (RM13,325); Selangor (RM12,233); and Johor (RM8,517), he said.
“Putrajaya is more civil servant-centric and is starting to be resided by high-income private sector workers, so that contributed to it having the highest average household income,” he said.
Uzir said that in line with the government’s proposal of disposable income as the basis of its approach to helping the people, DoSM has taken the initiative by analysing survey findings from the perspective of disposable income.
He said the average monthly disposable household income increased by 1.7% to RM7,111 in 2022 compared with RM6,764 in 2019, while the median monthly disposable household income also increased by 1.9% to RM5,413 in 2022 compared with RM5,116 in 2019.
On the income distribution pattern, the B40 income threshold of 3.16 million households was RM5,249 in 2022; the M40 group recorded an income average between RM5,250 and RM11,819; while 1.58 million households are in the T20 category with income exceeding RM11,820.
Regarding the analysis of the hardcore poor, Uzir said the poverty income line rose from RM2,208 in 2019 to RM2,589 in 2022.
Commenting on the survey report, Uzir said the average household in Malaysia spent RM5,150 per month in 2022.
“In addition to the income received by households, part of the expenditure was financed by non-income receipts such as government aid and special withdrawals from the Employees Provident Fund,” he said.
The household expenditure pattern was still focused on four main items, namely housing, water, electricity, gas and fuel amounting to 23.2%; non-alcoholic food and beverage (16.3%); restaurants and hotels (16.1%); and transportation (11.3%), he said.
Rafizi, when asked if the government will review the national poverty income line in channelling aid to targeted groups, said the government would take into account the poverty income line value presented by DoSM in coming up with appropriate forms of assistance.
“We can consider a more comprehensive method than using the B40, M40, and T20 approach, one of which is based on the income index that takes into account the overall income of a household, expenses, and poverty income line data,” he said. – Bernama, July 28, 2023
