Economy Minister: Cost of Living Outpacing Income Growth

By Danial Martinus • 15 Jul 2026 in News

Thirsty for JUICE content? Quench your cravings on our Facebook, Instagram, TikTok and WhatsApp

The cost of living is far outpacing income growth in Malaysia, especially among lower income groups and the working poor, who are described as people who are employed but don’t earn enough money to cover basic living expenses, thus leaving them in poverty.

Average household income rose by 3.8% from 2022 to 2024, but this still isn’t enough

Referencing data from the Household Income and Basic Amenities Survey 2024, Economy Minister Akmal Nasir Nasrullah shared that average household income rose from RM8,479 in 2022 to RM9,155 in 2024.

While that growth isn’t something to scoff at, it still doesn’t help lower income groups and the working poor catch up with rising living costs.

Economy Minister Akmal Nasir Nasrullah. (source: Bernama / Malay Mail)

“Overall, data from the Poverty Line Income (PGK), Cost of Living Expenditure (PAKW), and Household Cost of Living Index (IKSH) by the Department of Statistics Malaysia (DOSM) confirm that rising prices of essential goods and services have affected 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, reflecting higher basic living costs. Similarly, the average national PAKW rose from RM4,729 a month to RM4,846 a month.”

(source: Hari Anggara / New Straits Times)

Simply put, the bar for what’s considered “poverty” in Malaysia has been lowered, which serves to include a much larger group of people in that category.

Similarly, the “relative poverty” line has also increased, rising from RM3,169 in 2022 to RM3,509 in 2024.

According to Akmal Nasir, the ministry would be looking into ways to increase wages while also controlling the price increases of goods and services, both of which would align with the 13th Malaysia Plan from 2026 to 2030.