Average income per household up 2.4% to RM8,479

 

Food and beverages accounted for 16% of average household expenditure last year, according to the statistics department.

PUTRAJAYA: The average household income in Malaysia increased by 2.4% in 2022 to RM8,479 compared to RM7,901 in 2019, according to the statistics department’s household income and household expenditure survey 2022.

The chief statistician, Uzir Mahidin, said the report showed that the median household income had increased moderately by 2.5% per year to RM6,338 in 2022 compared to 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 economy minister Rafizi Ramli.

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Uzir said the household income comprised paid employment, self-employment, income from investment and current transfers received.

States in which median income was above the national level 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 income above the national level: Putrajaya (RM13,473); Kuala Lumpur (RM13,325), Selangor (RM12,233) and Johor (RM8,517).

“In Putrajaya, it is more civil servant-centric and it 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 the statistics department had analysed the survey findings from the perspective of disposable income in line with the government’s proposal to channel aid to the people based on disposable income.

He said the average monthly disposable household income increased by 1.7% to RM7,111 in 2022 compared to RM6,764 in 2019, while the median monthly disposable household income also increased by 1.9% to RM5,413 in 2022 compared to RM5,116 in 2019.

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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 line income rose from RM2,208 in 2019 to RM2,589 in 2022.

He said the average household in Malaysia spent RM5,150 per month in 2022, financed by their income as well as other receipts such as government aid and special withdrawals from EPF.

Household expenditure was focused on four main items: housing, water, electricity, as well as gas and fuel, which amounted to 23.2%; non-alcoholic food and beverages (16.3%); restaurants and hotels (16.1%); and transport (11.3%), he said.

Rafizi, when asked about the new poverty line income, said the government would take the figure into account when coming up with appropriate forms of assistance.

“We can consider a more comprehensive method compared to 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 income line data,” he said. - FMT