Overview
Basic Expenditure of Decent Living (PAKW) Index
The Basic Expenditure of Decent Living (PAKW) Index is a new indicator introduced in the Cost of Living Indicators publication. It is used to measure the level of expenditure required to maintain a decent standard of living across different locations. This indicator aims to provide a relative measure of the average expenditure needed for a decent living at the state, district, and state capital levels, and to facilitate relative comparisons between locations.
The index is constructed by setting Kuala Lumpur as the reference value (100), with all other locations measured relative to this benchmark. A lower index value indicates a lower level of expenditure required to maintain a decent standard of living compared to the reference value, while a higher index value reflects a greater expenditure requirement. Therefore, this index can be used as a reference to understand differences in the cost of living across locations, including identifying areas that relatively have a lower cost of living.
Basic Expenditure of Decent Living (PAKW) at State level
The analysis of the PAKW Index for single-person households in 2024 shows that no state recorded an index exceeding the reference value. Selangor recorded the highest index at 92.0 points, followed by Pulau Pinang
(84.2 index points) and W.P. Putrajaya (83.1 index points). The states with the lowest indices were Kelantan (53.7 index points), Sarawak (53.7 index points) and Kedah (56.6 index points).
For two-person households, a similar index pattern was observed. Selangor recorded the highest index at 91.4 index points, while W.P. Putrajaya and Pulau Pinang recorded 84.6 index points each. The states with the lowest indices were Kelantan (58.0 index points), Kedah (58.7 index points) and Perlis (58.8 index points).
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