Malaysians question whether high-income status will improve lives
PETALING JAYA: Malaysia may be just one step away from attaining World Bank high-income status but for many citizens, the milestone remains more of a statistic than a reality as rising living costs continue to outpace wage growth and squeeze household finances.
From those earning RM4,000 a month to professionals taking home more than RM10,000, many say the country’s improving economic indicators have yet to translate into stronger purchasing power or greater financial security.
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Conveyancing assistant Malathy Arumugam, 50, who earns between RM4,000 and RM5,000 a month, said an 8% salary increase about a year ago had done little to ease mounting expenses.
The Bangsar-based employee said rent, groceries, insurance and utility bills had all risen faster than her income.
“I can still save, but not as much as I would like. Some months, I manage around RM1,000, but unexpected expenses often reduce that.”
While encouraged by the country’s economic progress, Malathy said the headline figures did not reflect the financial pressures many workers continued to face.
“The numbers may show the country is doing better overall, but many workers are still feeling pressure from the rising cost of living.”
Foreign diplomatic mission staff member Faris Ariffin, 37, said although his income had increased faster than inflation, it was still insufficient to provide long-term financial security. He added that despite earning between RM5,000 and RM10,000 a month, he could save only RM500 to RM700 in months without emergencies or unexpected expenses.
When asked whether Malaysia’s progress towards high-income status reflected his own circumstances, Faris drew a distinction between national economic performance and personal finances. “From a national development perspective, yes.
From an individual salary-expenditure perspective, no. “For it to feel like a high-income nation to me, basic necessities such as groceries, rent or mortgage payments, education fees and public hospital or medical costs would need to be at least 30% cheaper.”
Environmental executive Nik Syazalina, 34, offered a more optimistic perspective, saying her income was currently rising faster than her essential expenses, allowing her to save consistently. Her salary increased by about 70% three years ago after she changed companies and moved into a different role. “I can see positive economic progress and improvements in opportunities, but the experience varies among individuals.
“While some individuals may feel the benefits of economic growth, others may still be facing challenges due to rising living costs and affordability concerns.”
She added that high-income status should be reflected through more high-value jobs, wages that rise alongside productivity and stronger purchasing power. Senior copywriter Shawn Goh Tian Ming, 32, who earns between RM8,000 and RM12,000 a month, said meaningful income growth had not come through regular salary progression.
He said although he continues to save, his earnings had risen more slowly than the cost of essential goods and services, making Malaysia’s progress towards high-income status feel disconnected from his own financial reality.
Petaling Jaya-based IT officer Jamil, 37, said rising prices had similarly outpaced his income in recent years. “I try to make consistent deposits into my investment accounts, but I skip some months when I need to spend on birthdays, anniversaries or trips.
“I’m no expert, but for Malaysia’s progress towards high-income status to feel meaningful to me, the government would need to reduce the disparity between higher earners and low- and middle-income earners through policies that promote inclusive prosperity.
