THE escalating cost of living is expected to remain a major challenge for Malaysians in 2026, as households grapple with stagnant wages, limited access to competitive employment, and ongoing uncertainty in the global economy.
Putra Business School MBA & DBA Programmes Director Prof. Dr. Ahmed Razman Abdul Latiff said the combination of low salaries and constrained job opportunities makes it increasingly difficult for many Malaysians to meet rising daily expenses.
“Even those who earn a sufficient income often struggle because low financial literacy leads to uncontrolled spending, which in turn drives higher levels of debt,” he told reporters following an appearance on Selamat Pagi Malaysia at Kota Media recently.
Ahmed also highlighted that the volatility of international markets this year could have knock-on effects on Malaysia’s domestic economy, adding further pressure on households already facing rising living costs.
He stressed the importance of personal responsibility in managing finances, reducing debt, improving skills, and seeking better-paying employment opportunities.
“Individuals must ensure structured financial management, enhance their competencies, and aim for higher-income jobs to cope with these pressures,” he said.
At the same time, he urged the government, private sector, and relevant agencies to maintain supportive ecosystems that enable households to improve their quality of life through employment opportunities, skills training, and financial education.
Ahmed warned that prolonged financial pressure could have serious consequences for mental health, reduce productivity, and increase social discontent.
“When people are burdened with earning income, paying debts, and meeting daily expenses, this is not just an economic issue; it carries wider social implications,” he noted.
While government initiatives under the 2026 Budget, including targeted aid and subsidies, provide short- to medium-term relief for vulnerable groups, he cautioned that these measures cannot substitute for sustainable solutions.
“Assistance must be complemented by economic development projects and income-generating opportunities so that citizens can achieve self-reliance rather than remain dependent on government support,” he said.
Experts indicate that combining personal financial discipline with structural support from the state and private sector will be essential to mitigate the pressures of a persistently high cost of living in Malaysia this year. - January 7, 2025
