The cost of living refers to the amount of household spending, including financial obligations (e.g. car and housing loans), to maintain a certain standard of living (Bank Negara Malaysia, 2018). The rising cost of living in Malaysia has been a pressing issue that affects the daily lives of the rakyat.
The increasing prices of food and daily necessities have strained household budgets. Factors such as inflation, supply chain disruptions and fluctuating global commodity prices have contributed to the rising cost of groceries and basic goods. In addition, the stagnant wage growth has put a strain on lower-income families, who often struggle to meet their daily needs.
In conclusion, the high cost of living in Malaysia is a complex issue impacting various aspects of daily life. Addressing this issue requires a multi-faceted approach involving government intervention, policy reforms, and efforts to improve income levels and affordability for citizens.
Concerns about Malaysia’s rising cost of living are influenced by these persistent internal and external issues. These are:
- Higher fiscal deficit;
- Price controls; and
- Stagnant wages.