Parents, do we have enough savings for our children’s future studies? How about SSPN? Higher education could be expensive, could we afford it in the future? How much do we need for a degree in a local private university? The costs vary but generally, it could start with RM35,000 or higher. For SEGI University, its Bachelor of Accounting and Finance would be around RM37,000 for the whole degree…

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KUALA LUMPUR — Beginning next year, National Higher Education Fund Corporation (PTPTN) loans for students from poor and hardcore poor families, identified through e-Kasih data, will be converted into full scholarships. PTPTN chairman Datuk Seri Norliza Rahim said the initiative, announced under Budget 2026, reflects the government’s commitment to inclusive higher education and the welfare of…

KUALA LUMPUR — Former economy minister Rafizi Ramli has compared Prime Minister Datuk Seri Anwar Ibrahim’s welfare programmes to Datuk Seri Najib Razak’s BR1M scheme, saying both share similar structures. Speaking on his Yang Berhenti Menteri podcast, Rafizi said initiatives such as the Rahmah Necessities Aid (Sara) and Rahmah Cash Aid (STR) should be made permanent social policies rather than…

Kuala Lumpur is Malaysia’s bustling capital and economic hub, boasting higher salaries on average than other states. However, the cost of living in KL is also substantially higher, squeezing the budgets of low- and middle-income earners. This article dives into the most recent data on average incomes in KL and provides a comprehensive breakdown of how people in this income range spend their money on necessities like housing, food, transportation, healthcare, insurance, entertainment, utilities, debt repayments, and (if possible) savings. We’ll also highlight the cost-of-living pressures they face, current savings trends, and common financial challenges, using authoritative sources such as the Department of Statistics Malaysia (DOSM) and Bank Negara Malaysia.

Income Levels in Kuala Lumpur: Focus on Low to Middle Earners

Higher Average Salaries, But Not Everyone Benefits: Kuala Lumpur residents generally earn more than the national average. As of late 2023, the median monthly salary for formal-sector employees in KL was around RM3,800 (BERNAMA - Kl, Selangor, Penang Record Median Monthly Salaries Exceeding National Rate). This is notably above the national median of about RM2,600 (Median monthly wages of Malaysia's formal sector employees in Q1 2023 | Human Resources Online). (In early 2023, KL’s median was reported even higher, at ~RM3,927 (Median monthly wages of Malaysia's formal sector employees in Q1 2023 | Human Resources Online).) What this means is that a typical individual worker in KL earns roughly RM3.8k a month – reflecting the city’s higher-paying jobs. Top earners pull this average up further; in fact, the mean household income in KL was RM13,325 in 2022 (with a median household income of ~RM10,234) ( Stats Dept: Average household income at RM8,479 in 2022 | Malay Mail ), far exceeding the national median household income of RM6,338 ( Stats Dept: Average household income at RM8,479 in 2022 | Malay Mail ) ( Stats Dept: Average household income at RM8,479 in 2022 | Malay Mail ). Low- to Middle-Income Definition: When we talk about “low- to middle-income” earners, we are roughly referring to the Bottom 40% (B40) and Middle 40% (M40) of the income distribution. In KL’s context, many in this group earn in the ballpark from the minimum wage (RM1,500) up to around the city’s median salary (RM3–4k range). It’s important to note that not everyone in KL enjoys a high salary – a large segment of workers earn modest wages despite the city’s wealth. National data shows that about 34.6% of Malaysian formal-sector workers earn below RM2,000 a month (BERNAMA - Kl, Selangor, Penang Record Median Monthly Salaries Exceeding National Rate), and although KL’s figure might be a bit lower due to higher average pay, a significant share of KLites still fall into this low-income bracket. These could be entry-level employees, service sector workers, gig economy workers, etc., for whom RM1,500–RM2,500 monthly incomes are common. Middle-income individuals in KL might earn between ~RM3,000 and RM6,000 (straddling the lower M40 range). Household vs Individual Income: Keep in mind, many households have more than one earner. DOSM reports the average Malaysian household has 1.8 income earners ( Stats Dept: Average household income at RM8,479 in 2022 | Malay Mail ). In Kuala Lumpur, a typical low/mid-income household might have two working adults whose combined income could be, say, RM4,000–RM6,000 (if each earns ~RM2–3k). That aligns with the median household income for KL. But whether it’s a single person or a small family, the real question is: how far does that income go in an expensive city like KL?

Cost-of-Living Pressures in KL

Earning a few thousand ringgit in KL doesn’t equate to living comfortably – rising costs of living have been eroding the purchasing power of these earnings. In recent years, expenses have grown faster than incomes for many households. Between 2019 and 2022, average household spending in Malaysia rose by 3.7% (compounded annually) while average household income grew only ~2.4% (DOSM: Household spending grew faster than incomes in 2019-2022, partly fuelled by EPF withdrawals, govt handouts) (DOSM: Household spending grew faster than incomes in 2019-2022, partly fuelled by EPF withdrawals, govt handouts). In other words, costs outpaced wages. The Department of Statistics noted that Malaysians had to finance some of this increased spending using “non-income” money – special EPF withdrawals and government cash aid during the COVID-19 pandemic (DOSM: Household spending grew faster than incomes in 2019-2022, partly fuelled by EPF withdrawals, govt handouts) – highlighting that normal incomes alone weren’t keeping up with expenses. Inflation Hits Hard: Part of the pressure comes from inflation, especially in essential items. Overall inflation in 2022 was 3.3%, but food prices jumped 5.8% that year (). For city dwellers in KL, food inflation was even higher (urban food inflation ~6.1% in 2022) (). This disproportionately hurts lower-income households because they spend a larger chunk of their income on food. Estimates show low-income households spend about 38% of their income on food, compared to around 27% for higher-income households (). So when food prices climb, poorer families feel the squeeze much more. Similarly, costs for utilities and fuel have risen, though Malaysia’s broad subsidies (for petrol, cooking oil, electricity, etc.) have cushioned some of the impact. Even so, by 2023 the government had to allocate over RM70 billion on subsidies and aid to alleviate living costs () (), an indicator of how serious the cost-of-living issue has become. Stagnant Incomes for the Poor: Not everyone’s income is growing. Data suggests that the poorest urban households in KL actually saw real income declines after the pandemic. Adjusted for inflation, the average monthly income of KL’s bottom 10% households dropped from about RM4,146 in 2019 to RM3,431 in 2022 (). (These are household figures; for context, RM3.4k is roughly what a low-income family in KL survives on per month.) This means the poorest families are worse off in purchasing power than they were before. It’s no surprise then that poverty rates ticked up – Malaysia’s overall poverty incidence was 6.2% in 2022 (vs 5.6% in 2019) (), and urban poverty remains a concern even in KL’s “rich” environment. Struggle to Make Ends Meet: A World Bank study underscored how precarious things are for low-income Malaysians: 7 in 10 low-income households struggle to meet monthly basic needs, and 6 in 10 have no savings at all (). This is a startling figure – essentially, the majority of the B40 are living paycheck-to-paycheck with nothing left to buffer against emergencies. Kuala Lumpur’s low/middle earners fit this profile: many find that after paying the rent, buying groceries, and covering transport, there’s little or nothing left of their salary. Before diving into exactly where the money goes, it’s useful to outline the typical spending pattern. Across Malaysia, households (on average) devote the bulk of their spending to a few key necessities. DOSM’s Household Expenditure Survey 2022 shows that about 66.9% of total household spending is concentrated in four main categories (DOSM: Household spending grew faster than incomes in 2019-2022, partly fuelled by EPF withdrawals, govt handouts): - Housing, Utilities & Other Fuels: ~23.2% of spending (DOSM: Household spending grew faster than incomes in 2019-2022, partly fuelled by EPF withdrawals, govt handouts) (this includes rent or mortgage, electricity, water, cooking gas, etc.) - Food & Non-Alcoholic Beverages (Groceries): ~16.3% (DOSM: Household spending grew faster than incomes in 2019-2022, partly fuelled by EPF withdrawals, govt handouts) (food consumed at home) - Restaurants & Hotels: ~16.1% (DOSM: Household spending grew faster than incomes in 2019-2022, partly fuelled by EPF withdrawals, govt handouts) (meals eaten out, takeaway, plus any spending on hotels) - Transportation: ~11.3% (DOSM: Household spending grew faster than incomes in 2019-2022, partly fuelled by EPF withdrawals, govt handouts) (fuel, public transport, vehicle expenses) The remaining ~33% is split among all other needs – including healthcare, education, communication (phone/internet), clothing, entertainment/recreation, insurance, personal care, etc. Low- to middle-income earners in KL tend to follow a similar pattern, although the exact proportions can vary (for instance, someone who doesn’t own a car might spend less on transport and more on food or vice versa). Let’s break down each major category and see how KL individuals manage their income in each area. (image)Figure: Average Malaysian household spending by category (2022). Essential expenses (housing, food, transport) make up the bulk of monthly costs (DOSM: Household spending grew faster than incomes in 2019-2022, partly fuelled by EPF withdrawals, govt handouts).

Housing: Rent, Mortgages and Utilities

Housing is typically the single largest expense for city dwellers. In Kuala Lumpur, the high cost of accommodation is a top concern for low- and middle-income earners. Nationally, housing and utilities account for about 23% of household expenditures (DOSM: Household spending grew faster than incomes in 2019-2022, partly fuelled by EPF withdrawals, govt handouts), the biggest share of any category. In KL, this percentage can be even higher in practice, because rents are well above the national average. Recent data show that the average rent in Kuala Lumpur is around RM2,863 per month (Report: Renters in Malaysia feel the pinch as average rent climbs nearly… | Kashif Ansari) for residential properties – about 44% higher than the Malaysian average rent. This figure might represent renting a typical apartment or condo in the city. For someone earning, say, RM3,500 a month, a RM2.8k rent is clearly unaffordable. As a result, lower-income KL residents must find strategies to reduce housing costs: many rent smaller flats or single rooms, live in the city’s outskirts (with longer commutes), or share apartments with roommates or extended family. Even with those adjustments, it’s not uncommon for low-income families in KL to spend 30% or more of their monthly income on housing and basic utilities. For example, renting a low-cost flat might be ~RM800, and utilities (electricity, water, waste) another RM150–RM200, on a household income of RM3,000 – that’s roughly one-third of the income gone. Middle-income households might be paying a mortgage or higher rent in the range of RM1,500–RM2,500, which still eats up a significant portion of a RM5k–RM6k income. The term “housing affordability” is often defined as housing costs not exceeding 30% of income; many KL households struggle to meet this benchmark. According to Bank Negara Malaysia, housing in urban centers has become severely unaffordable relative to incomes over the years, forcing many to either downsize living space or incur long-term debts for homeownership. Utilities (electricity, water, cooking gas) are typically counted together with housing costs by DOSM. These are essential bills that cannot be avoided. Malaysia’s electricity tariffs are subsidized for basic usage, but in KL’s hot climate, running fans or air-conditioning (even moderately) can lead to substantial electric bills. A middle-income family might pay RM150–RM250/month for electricity if using AC regularly; lower-income families in small units might keep it lower by using fans. Water is relatively cheap (often under RM30). Cooking gas cylinder refills and other utilities add a bit more. Additionally, most households now consider internet and mobile phone service a necessity – a monthly broadband and phone plan could be another RM100–RM200. When combined, these utility and communication expenses typically form part of that 23% housing/utilities segment (DOSM: Household spending grew faster than incomes in 2019-2022, partly fuelled by EPF withdrawals, govt handouts). They may seem small individually, but they add up and must be paid every month, further tightening the budget. In summary, shelter and utilities easily take up a quarter or more of a KL household’s spending. High rents are a pain point – in fact, there have been news reports of rents climbing nearly 4% in one quarter recently, as demand for city living rises post-pandemic (Report: Renters in Malaysia feel the pinch as average rent climbs nearly… | Kashif Ansari). For low-income earners, there are public housing programs and rent subsidies available on a limited basis, but many still end up in the private rental market where they have to compromise on location, space, or living conditions to make the rent each month.

Food: Groceries and Eating Out

The Higher Education Ministry backs Prime Minister Anwar Ibrahim’s push to revise PTPTN loan rates and repayment terms, addressing RM40bil in accumulated debt and RM11bil outstanding. With 383,637 defaulters last year, the ministry seeks flexible, empathetic repayment solutions to maintain affordable education. Anwar proposed taxing the wealthy for relief, while MCA supports reinstating travel…