Malaysia: cost of living

How fast is the cost of living rising in Malaysia?

Consumer prices in Malaysia rose 1.9% in the year to August 2026, according to the DOSM consumer price index. Food and beverages were up 1.9%, housing, utilities, gas and other fuels 2.1%, transport 2.0% and restaurants and accommodation 2.1%, according to the CPI data by division.

The CPI measures the change in the price of a fixed basket of goods and services bought by households; it does not show how much a household spends. Households whose spending is weighted towards food or transport can see different rises from the average.

Official sources: DOSM: Consumer price index, August 2026 · data.gov.my: CPI inflation by division

What is the poverty rate in Malaysia?

5.1% of households in Malaysia were in absolute poverty in 2024, according to DOSM poverty statistics. The average poverty line income was RM2,705 a month per household, up from RM2,589 in 2022. Poverty was 3.7% in urban areas and 10.0% in rural areas.

A household is counted as poor if its income is below a poverty line that reflects the cost of basic food and non-food needs for its size and location. Sabah had the highest rate, at 17.7%, followed by Kelantan at 11.5%. The figures come from the Household Income Survey, which DOSM runs every two years.

Official sources: DOSM: Poverty in Malaysia, 2024

What is the median household income in Malaysia?

The median monthly household gross income in Malaysia was RM7,017 in 2024, up from RM6,338 in 2022, according to DOSM data on the open data portal. The mean was RM9,155.

Half of households earn less than the median. The Gini coefficient, a measure of income inequality from 0 to 1, fell from 0.404 in 2022 to 0.390 in 2024, according to DOSM income inequality statistics. Household income includes wages, self-employment income, property income and transfers, before tax.

Official sources: data.gov.my: Household income · DOSM: Income inequality, 2024

Which states in Malaysia are most expensive to live in?

Selangor had the highest Basic Expenditure of Decent Living (PAKW) index for single-person households in 2024, at 92.0 points, followed by Pulau Pinang at 84.2 and Putrajaya at 83.1, according to DOSM cost of living indicators. Kelantan and Sarawak were lowest, at 53.7 each.

The index sets Kuala Lumpur at 100 and compares the spending needed for a decent standard of living in other places with it, so no state scored above 100. It compares places with each other; it does not measure price changes over time, which the CPI does.

Official sources: DOSM: Cost of living indicators, 2024

What support does Malaysia give for fuel and electricity bills?

In the Budget 2027 speech, the government said total provision for subsidies, assistance and incentives is expected to exceed RM80 billion in 2027, including RM40 billion for fuel subsidies. It said the monthly BUDI95 petrol quota was raised to 300 litres and the household electricity bill exemption threshold from 600 to 800 kWh a month.

These are government statements of policy and allocations; actual spending is reported later in the Ministry of Finance's fiscal updates. Price changes for fuel and electricity show up in the transport and housing, utilities, gas and other fuels groups of the consumer price index.

Official sources: Ministry of Finance: Budget 2027 speech

What is Malaysia's inflation rate?

The latest figure from the IMF, for 2025, is 1.4%. Its high point since 2005 was 2008, at 5.4%; its low point was 2020, at -1.1%. Across East Asia & Pacific the middle value was 2.2%, and Malaysia placed 16th highest of 24. Worldwide: 125th of 165.

What is household spending per person in Malaysia?

$7,491: that is household consumption per person in Malaysia for 2025, according to the World Bank. It is the top of the series, which starts in 2005. It is 5th highest of 12 in East Asia & Pacific, where the median is $3,794. Of 124 countries with 2025 data, 46th highest.

What is the extreme poverty rate in Malaysia?

In 2021, the share of people living on less than $3.00 a day in Malaysia was 0.0%, according to the World Bank. That is the lowest since at least 2006. It is 5th highest of 7 in East Asia & Pacific, where the median is 0.1%. Of 80 countries with 2021 data, 72nd highest.

What share of Malaysia lives below the poverty line?

The World Bank puts the share of people below the national poverty line in Malaysia at 5.1% in 2023. Worldwide: 38th of 39.

What is income inequality in Malaysia?

The World Bank puts the Gini index in Malaysia at 40.7 in 2021. It is the bottom of the series, which starts in 2006. East Asia & Pacific median: 35.5; Malaysia is 1st highest of 7. World rank, highest first: 13th of 80.

How many people in Malaysia face food insecurity?

The latest figure from the FAO, for 2024, is 15.4%. Since 2015 it has ranged from 14.9% (2019) to 17.4% (2015). Across East Asia & Pacific the middle value was 15.4%, and Malaysia placed 9th highest of 17. Of 135 countries with 2024 data, 78th highest.