Average household income at RM8,479 in 2022

The average household income in Malaysia increased by 2.4 per cent in 2022 to RM8,479 compared to RM7,901 in 2019, according to the Household Income and Household Expenditure Survey 2022.

Chief Statistician Datuk Seri Dr Mohd Uzir Mahidin said the report, released by the Department of Statistics Malaysia (DOSM), 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 Economic Minister Rafizi Ramli.

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

He said that the states which achieved median income above the national level of RM6,338 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 of RM8,479, namely Putrajaya (RM13,473); Kuala Lumpur (RM13,325), Selangor (RM12,233) and Johor (RM8,517), he said.

“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.

Mohd Uzir said that in line with the government’s proposal on disposable income as the basis of the approach to helping the people, DOSM has taken the initiative by analysing the survey findings from the perspective of disposable income.

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

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, Mohd Uzir said the Poverty Income Line (PGK) rose from RM2,208 in 2019 to RM2,589 in 2022.

Commenting on the survey report, Mohd Uzir said the average household in Malaysia spent RM5,150 per month in 2022.

“In addition to the income received by households, part of the expenditure was financed by non-income receipts such as government aid and special withdrawals from the Employees Provident Fund (EPF),” he said.

The household expenditure pattern was still focused on four main items, namely housing, water, electricity, gas and fuel amounting to 23.2 per cent; non-alcoholic food and beverage (16.3 per cent); restaurant and hotel (16.1 per cent); and transportation (11.3 per cent), he said.

Rafizi, when asked if the government will review the national PGK value in channelling aid to targeted groups, said the government would take into account the PGK value presented by the DOSM in 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 PGK data,” he said.