Measure of a wealthy nation – better lives, not just high income

 

From Tan Peck Leong

Recently, the World Bank reported that Malaysia is on track to achieve high-income status by 2028. What does it really mean for the average Malaysian?

For decades, the idea of becoming a high-income nation has been seen as the ultimate marker of success. But is wealth alone the best goal for a country? Let’s take a step back and rethink what national progress should truly look like.

When we think of a developed or high-income country, we often imagine a place where everyone enjoys prosperity. But is earning more money really the answer to a better life?

Look at today’s younger generation — they are no longer driven solely by the desire for wealth. Surveys and studies show that young people prioritise experiences, leisure, and personal fulfillment over just working harder to earn more. They seek a life of balance rather than a relentless pursuit of money.

In Malaysia, only 20% of households (T20) earn more than RM11,000 per month, a level considered to place them among the higher earners. For a family of four, including children entering college, this income may not be enough to cover basic expenses — especially if they have to pay for private education, medical care, transport and housing.

Sending a child to a private university is an expensive commitment. Public universities may be more affordable but are highly competitive, and many students are left with no choice but to attend private institutions.

The cost of tuition at private universities can easily exceed RM50,000 to RM100,000 for a full degree programme. Living expenses can add another RM1,000 to RM1,500 per month, per student.

For families that rely on government study loans, such as the National Higher Education Fund (PTPTN), the financial strain remains significant. The loans are often not enough to support a student’s living expenses, especially for those attending private universities; these students may have to take up part-time jobs just to make ends meet.

To make matters worse, students who graduate with substantial loan debts are left with the burden of repayment as soon as they enter the workforce, not only delaying their financial independence but also adding pressure to already tight household budgets, and stuck in a cycle where a portion of their income goes toward paying off education loans, leaving little room for savings or investments.

Medical expenses are another burden. While government health services exist, long waiting times and limited resources often push families to purchase health insurance. A medical card for a family of four could cost between RM300 and RM500 per month. Similarly, education costs, including after-school tuition (which 80% of urban students need), easily add RM100 per child per month.

Even transport is costly. Owning a car requires at least RM1,000 a month, covering fuel, maintenance, and insurance while public transport can be unreliable and time-consuming, with some commutes taking up to three hours.

A high-income country should not only focus on raising wages but also on reducing the burdens that families face. Affordable healthcare, quality education, reliable public transport, and affordable housing are the building blocks of a truly wealthy nation.

The government should step in to create systems that minimise household expenses — like a national health insurance programme, a better transport network, a strong public education system that doesn’t rely on expensive after-school tuition, and reasonable housing costs.

True wealth is created when citizens can benefit from high-quality public goods and services. A high-income country is not just defined by how much people earn, but by how much they can save and invest in their future because their basic needs are met through efficient public services.

This is the vision of a high-income nation: one where people live better, free from the stress of financial burdens and who can thrive in a system that supports their well-being. This is what we hope to see reflected in the national budget — a budget that prioritises not only economic growth, but the well-being of the people through better public services and infrastructure. - FMT

Tan Peck Leong is a professor at the Arshad Ayub Graduate Business School of Universiti Teknologi Mara.

The views expressed are those of the writer and do not necessarily reflect those of MMKtT.