KRI: Malaysians’ Wellbeing Improves but Income Gaps Persist

Malaysians’ overall wellbeing has improved as wages climb back above pre-pandemic levels, but wide income gaps between districts and households persist, according to a new report by Khazanah Research Institute (KRI).

The study, titled From Income to Wellbeing: The State of Households 2026, found that Malaysians are still classed as happy based on a recent KRI survey, even as rising living costs squeeze lower-income families.

Household Income and Jobs Recover

Median monthly household income stood at RM7,017 in 2024, while labour force participation was 70.6% that year.

Putrajaya recorded the fastest wage growth, with its median monthly household income rising from RM2,700 in 2010 to more than RM4,500 in 2024.

Income Gaps Across Districts

The report highlights deep regional disparities. Nearly half of Malaysian households, or 46.2%, live in 22 of the country’s 166 districts, where median monthly household income falls below the national figure of RM7,017.

KRI found that 111 districts have poverty rates higher than the national rate of 5.1%, and in 66 districts the poverty rate is more than double the national level.

Rising Costs Squeeze Poorer Households

Household spending among the bottom 70% of earners rose by more than 15% between 2019 and 2024, while spending among the top 10% barely changed.

As a result, the poorest 10% of households kept only 1.9% of their gross income after consumption expenses, down sharply from 10.8% in 2019. KRI noted that these residual income figures do not yet account for taxes, loan repayments or money sent to other households, meaning actual disposable income could be even thinner.

The findings suggest that while wages have risen, higher living costs are eroding gains for lower-income households, leaving them with little buffer against financial shocks.

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