In 2019, mean income in Malaysia was RM7,901 while Malaysia’s median income recorded at RM5,873. In terms of growth, median income in Malaysia grew by 3.9 per cent per year in 2019 as compared to 6.6 per cent in 2016. Moreover, mean income rose at 4.2 per cent in 2019.
Median household income in urban recorded an increase at a rate of 3.8 per cent from RM5,860 in 2016 to RM6,561. Similarly, median household income in rural also increased at a rate of 3.3 per cent over the same period that is between RM3,471 to RM3,828. Mean household income in urban grew by 3.9 per cent per year from RM7,671 to RM8,635. Meanwhile in rural, mean household income was RM5,004 in 2019, grew by 0.8 per cent higher than the national level of 4.6 per cent.
At state level, W.P. Kuala Lumpur recorded the highest median income with RM10,549 followed by W.P. Putrajaya (RM9,983), Selangor (RM8,210), W.P. Labuan (RM6,726), Johor (RM6,427), Pulau Pinang (RM6,169) and Melaka (RM6,054). W.P. Putrajaya had the highest compounded annual growth rate of median income at 6.3 per cent over the period of 2016 to 2019, 1.6 times higher than the national median growth rate, 3.9 per cent. Eight other states that also exceeded the national median growth rate were Terengganu (5.6%), W.P. Kuala Lumpur (5.0%), Kelantan (4.9%), Pulau Pinang (4.4%), Johor (4.3%), Selangor (4.3%), W.P. Labuan (4.2%) and Kedah (4.2%).
In terms of mean, the Federal states registered mean income higher than the national level, RM7,901. Furthermore, Selangor and Johor also recorded mean income higher than the national with mean income of RM10,827 and RM8,013, respectively. The highest growth of mean income recorded by Terengganu (5.5%), 1.3 times more than the national mean growth rate, 4.2 per cent.
Survey findings also showed that income threshold for the B40 group in 2019 comprising 2.91 million households was RM4,849. The M40 group’s income threshold involving 2.91 million households was between RM4,850 to RM10,959. In addition, there were 1.46 million households in T20 group with income more than RM10,960. In terms of income distribution, the T20 constituted 46.8 per cent of total household income as compared to 46.2 per cent in 2016. Moreover, the M40 group had 37.2 per cent, while the B40 only covered 16.0 per cent of total income, decreased from 16.4 per cent in 2016.
Current household income is a gross household income and still includes income payable as a tax and social security scheme. Conceptually, disposable income refers to the amount of income after deducting current transfer payment including compulsory payments incurred on households such as taxes, zakat and contributions to social security schemes. Median monthly household disposable income was RM5,116 in 2019, rose 4.2 per cent from RM4,513 in 2016. In addition, mean monthly household disposable income was RM6,764 from RM5,928 recorded in 2016. Mean disposable income comprises of 85.6 per cent of total mean gross income.
The 2019 findings depicted the value of Gini coefficient that was calculated based on gross income increased by 0.008 percentage points from 0.399 (2016) to 0.407 (2019). Over the period, Gini coefficient in urban area increased from 0.389 to 0.398 whereas Gini coefficient in rural rose from 0.364 to 0.367. The Gini coefficient for the Bumiputera has risen from 0.385 to 0.389 while for the Chinese it has increased from 0.411 to 0.417. The Gini coefficient for the Indians also increased from 0.382 to 0.411.
The Gini coefficient can also be measured based on disposable income where in 2019 it grew by 0.2 percentage points from 0.391 (2016) to 0.393 (2019). Over the period, Gini coefficient in urban area increased from 0.380 to 0.385 while Gini coefficient in rural decreased from 0.365 to 0.361. The Gini coefficient for the Bumiputera reduced from 0.380 to 0.377 while for the Chinese it has climbed up from 0.396 to 0.399. The Gini coefficient for the Indians also recorded a rise from 0.372 to 0.399.
In accordance with the 2019 methodology, the national mean PLI value was RM2,208 per month while the mean Food PLI value was RM1,038 monthly with average household size of 3.9 persons. This mean PLI value is obtained by dividing overall PLI value in each household with total number of households in Malaysia. The incidence of overall absolute poverty improved from 7.61 per cent in 2016 to 5.6 per cent. Similarly, the incidence of absolute poverty in urban and rural also recorded a decrease to 3.8 per cent and 12.4 per cent respectively. meanwhile, hardcore poverty registered to 0.4 per cent in 2019 as compared to 0.62 per cent in 2016.
1 Revised based on 2019 Methodology
2 Based on PLI 2005 Methodology
Based on the survey, the percentage of occupied dwelling owned by households has increased by 0.6 percentage points from 76.3 per cent in 2016 to 76.9 per cent. At the same time the percentage of rented dwellings also increased by 0.2 percentage points to 19.8 per cent. However, the percentage of households living in quarters dropped by 0.8 percentage points to 3.3 per cent.
DATO’ SRI DR. MOHD UZIR MAHIDIN
CHIEF STATISTICIAN MALAYSIA
DEPARTMENT OF STATISTICS, MALAYSIA
10 July 2020
Mohd Yusrizal Ab Razak
Public Relation Officer
Strategic Communication and International Division
Department of Statistics, Malaysia
Tel: +603-8885 7942
Fax: +603-8888 9248