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MALAYSIA'S Cost of Living Index, which measures changes in household living expenses, increased to 105.1 points in 2024 from 103.1 points in 2023, based on the 2022 baseline of 100 points at the national level.
Putrajaya recorded the highest cost of living index at 106.3 points, followed by Kuala Lumpur at 106.1 points and Selangor at 105.4 points.
Kelantan recorded the lowest reading at 103.9 points, followed by Kedah at 104.6 points.
Economy Minister Akmal Nasrullah Mohd Nasir said findings from the Household Income and Expenditure Survey (HIES) 2024 showed that average household income increased from RM8,479 in 2022 to RM9,155 in 2024, representing annual growth of 3.8 per cent.
"Meanwhile, average household expenditure also increased from RM5,150 to RM5,566, representing growth of 3.9 per cent annually during the same period," he said in a written parliamentary reply published on the Parliament website.
He was responding to a question from Datuk Dr Ahmad Marzuk Shaary (PN-Pengkalan Chepa) regarding a longitudinal study on the gap between real household income growth and rising living costs since 2018, as well as structured interventions to address the issue of working individuals who remain trapped in poverty.
Akmal said data from the Poverty Line Income (PGK), Decent Living Expenditure (PAKW) and IKSH indicators compiled by the Department of Statistics Malaysia (DOSM) confirmed that rising prices of essential goods and services continued to affect household living costs, particularly among low-income groups and the working poor.
He said the national Poverty Line Income increased from RM2,589 in 2022 to RM2,705 in 2024, while average PAKW rose from RM4,729 to RM4,846 per month.
The gap was more significant between urban and rural areas, with urban households recording an average PAKW of RM5,169 compared with RM3,712 for rural households.
"Under the 13th Malaysia Plan (RMK13), the government will continue focusing on addressing the cost of living through a dual strategy of increasing people's income and controlling the rise in prices of goods and services.
"The implementation of this strategy will be carried out across the short, medium and long term," he said.
For short-term measures under Budget 2026, Akmal Nasrullah said the government had allocated more than RM15 billion for the Rahmah Cash Contribution (STR) and Rahmah Basic Contribution (SARA).
An additional RM3.1 billion has also been allocated for assistance programmes under the Social Welfare Department for poor families, persons with disabilities and senior citizens.
Other initiatives include the Price Equalisation Programme for Sabah, Sarawak and Labuan worth RM67 million, the Payung RAHMAH initiative with an allocation of RM600 million, targeted subsidies based on PADU data, as well as enforcement measures to prevent profiteering and anti-competitive practices.
For medium- and long-term strategies under RMK13, the government will focus on increasing income levels and reducing structural costs through the creation of quality employment opportunities, implementation of the Progressive Wage Policy, increasing the minimum wage from RM1,500 to RM1,700, strengthening skills development, talent building, improving labour productivity and education reforms.
Akmal added these measures were aimed at ensuring economic growth translates into stronger household resilience and improved living standards, particularly for vulnerable communities facing continued cost pressures. - July 14, 2026
