Malaysian Household Income Increased At A Slower Rate Last Year

Malaysian Household Income Increased At A Slower Rate Last Year

The Department of Statistics Malaysia (DOSM) recently released 33 reports at the Majlis Pengumuman Penemuan Survei Pendapatan dan Perbelanjaan Isi Rumah 2022.

One of these reports was the Malaysia’s Household Income Survey Report 2022, which revealed the median household income of Malaysians increased by 2.5 percent in 2022 to RM6,338. It also showed that the mean household income also grew 2.4 percent to RM8,479 the same year.

In comparison, median household income rose at a higher percentage in 2019 at 3.9 percent while mean household income rose by 4.2 percent in 2019.

Chief statistician Datuk Seri Dr Mohd Uzir Mahidin also explained that six states had median income levels that are above the national average (2022: RM6,338). These states include W.P. Kuala Lumpur (RM10,234), W.P. Putrajaya (RM10,056), Selangor (RM9,983), W.P. Labuan (RM6,904), Johor (RM6,879) and Penang (RM6,502).

It was also revealed that Selangor recorded the highest median income growth of 6.5 percent per year for the period 2019 and 2022. Unfortunately, W.P. Kuala Lumpur recorded a noticeable decline in monthly gross median household income of 1.0 percent for the same period.

These income values also take into consideration the mean household size, which currently sits at approximately 3.8 people per household and an average of 1.8 income earners per household. Household income comprises paid employment, self-employment, income from investment and current transfers received.

According to the report, states that recorded median national income that was below the national average included Melaka (RM6,210), Terengganu (RM5.878), Negeri Sembilan (RM5,226), Sarawak (RM4,978), Pahang (RM4,753), Perlis (RM4,713), Sabah (RM4,577), Perak (RM4,494), Kedah (RM4,402), and Kelantan (RM3,614).

Uzir also made mention of the highest monthly mean gross household income, with Putrajaya topping the list at RM13,473, followed by Kuala Lumpur (RM13,325), Selangor (RM12,233) and Johor (RM8,517), higher than the national average of RM8,479.

The mean monthly disposable income also increased by 1.7 percent last year, at RM7,111 as compared to RM6,764 in 2019.

With regards to income distribution, the bottom 40 (B40) holds an average of RM5,249 (3.16 million households) while the middle 40 (M40) group recorded an income average between RM5,250 and RM11,819.  As many as 1.58 million households make up the top 20 (T20) group with average income exceeding RM11,820.

The T20 group comprised 46.3 percent of the total distribution of income households, down slightly from 46.8 percent in 2019. At the same time, M40 comprised up to 37.6 percent of total income distribution, while the N40 only represented 16.1 percent.

The survey also revealed that the income inequality gap in the country has narrowed by 0.3 percent in 2022, as compared to 2019.

At the same time, the value of the poverty line income (PLI) has increased from RM2,208 in 2019 to RM2,589 in 2022. The PLI value of food has also seen a noticeable increase from RM1,169 in 2019 to RM1,198 in 2022.

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