Klang Valley residents experienced a notable 6.7% rise in the cost of living between 2022 and 2024, as detailed in the Employees Provident Funds (EPF) Belanjawanku 2024-2025 guide. The guide, which estimates the minimum monthly expenditure required for a reasonable standard of living, highlights the region's status as Malaysia's most expensive, outpacing other cities like Alor Star, the least costly in the country.
The guide analyzed nine household categories, including single public transport users, couples with children, and senior citizens. Findings revealed cost increases ranging from 2.1% to 8% over the period.
For example, single individuals who own cars in the Klang Valley saw a significant 7.7% increase in living expenses, requiring RM2,800 per month in 2024/2025, compared to RM2,600 in 2022/2023. This hike was attributed to rising car prices and higher maintenance costs.
According to NST, married couples with two children faced an 8% increase in their estimated monthly budget, rising from RM6,890 in 2022/2023 to RM7,440 in 2024/2025. Key contributors to this increase include higher childcare expenses and rising food costs. Couples with two children now need RM1,210 per month for childcare, while those with one child spend about RM670.
Seniors are also feeling the pinch. A senior couple's budget increased by 5.6% to RM3,390, while a single senior individual now requires RM2,690, compared to RM2,520 previously.
The Belanjawanku guide, developed since 2019 by EPF and the Social Wellbeing Research Centre (SWRC) at Universiti Malaya, serves as an essential resource for personal financial planning. Initially focusing on the Klang Valley, it now covers 11 major Malaysian cities, offering annual updates to reflect evolving costs of living.
SWRC director Professor Norma Mansor underscored the urgency of financial literacy and budgeting. She highlighted that between 2020 and October 2024, 55.6% of bankruptcy cases involved individuals aged 25 to 44. Out of 30,398 bankruptcy cases during this period, 16,897 were within this age group.
"Low financial literacy, structural wage challenges, and the rising cost of living are major factors contributing to the low financial well-being of Malaysians," Professor Norma explained during a briefing on the guide.
The findings underscore the critical need for Malaysians to adopt effective personal and family budgeting practices to navigate rising living costs. The Belanjawanku guide aims to empower individuals and families with practical insights to achieve a reasonable standard of living amid economic pressures.
As the Klang Valley continues to lead as Malaysia's most expensive region, residents are encouraged to use the guide as a tool for better financial planning and decision-making.
Source: NST
