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The cost of living in Kuala Lumpur, Selangor, Penang, and Putrajaya has been recorded as the highest in Malaysia, according to the Basic Expenditure of Decent Living Index (PAKW) released by the Department of Statistics Malaysia (DOSM)
According to Berita Harian, Chief Statistician Datuk Seri Dr Mohd Uzir Mahidin said that the 2024 PAKW analysis for households sets Kuala Lumpur as the reference point at 100 index points, highlighting the significant cost-of-living gap between states.
For single-person households, Selangor recorded the highest index at 92, followed by Penang (84.2) and Putrajaya (83.1). In contrast, Kelantan and Sarawak recorded the lowest values at 53.7, while Kedah stood at 56.6.
A similar trend was observed for two-person households, with Selangor remaining the highest at 91.4, followed by Putrajaya and Penang at 84.6. The lowest values were in Kelantan (58), Kedah (58.7), and Perlis (58.8).
"For three-person households, the index generally rises, with Selangor leading at 92.4, followed by Putrajaya (84.8) and Penang (83.7), while the lowest are Sabah (59.6), Perlis (60.6), and Kedah (60.8).
"For four-person households, Selangor again tops the list at 91.3, followed by Putrajaya (84.7) and Melaka (83), while Sabah (59.4), Kedah (60.5), and Perlis (60.9) remain the lowest.
He added that states with higher indices, like Selangor, reflect higher living costs, whereas states with lower indices, such as Kelantan, Kedah, and Perlis, indicate lower — but still reasonable— living costs.
DOSM also published the Cost of Living Indicators 2024, providing an overview of the minimum expenditure required for households to maintain a decent standard of living and meaningful participation in society.
The PAKW index is a new measure used to gauge the level of spending needed to sustain a decent living across different locations. Kuala Lumpur is set as the reference value (100), while other states, administrative districts, and capitals are measured relative to it.
Lower index values indicate lower spending needs compared with Kuala Lumpur, while higher values reflect higher living costs.
Commenting further, Mohd Uzir said that according to the PAKW analysis, the decent living cost for a single-person household in Kelantan is 46.3% lower than in Kuala Lumpur
"Meanwhile, for a four-person household, the reasonable expenditure in Perlis is 39.1% lower than in Kuala Lumpur.
"This means that if a four-person household in Kuala Lumpur spends RM1,000 according to the PAKW, they would only need to spend RM609 if living in Perlis," he explained.
He also noted that at the district level, only Petaling in Selangor recorded PAKW index values higher than Kuala Lumpur for all household sizes, from one to four people.
For single-person households, Petaling recorded the highest index at 103.3, followed by Gombak (94.9) and Johor Bahru (94.7). The lowest were Pantu (27.8), Lingga (28.3), and Sebuyau (29.1) in Sarawak.
"For two-person households, Petaling remained the highest at 104.8, followed by Northeast Penang (94.9) and Gombak (94.6), with the lowest in Pantu (29.9), Lingga (31), and Membakut, Sabah (31.2).
"Analysis for three- and four-person households shows the same trend, with Petaling leading and Membakut recording the lowest indices. For all household sizes, the index in Pantu is less than a third of Petaling's, highlighting the stark cost-of-living differences between administrative districts," he added.
