EXAMINING THE PATTERN OF HOUSEHOLD MONTHLY INCOME AND EXPENDITURES BY STATE IN MALAYSIA

Authors

  • Syerrina Zakaria
  • Nor Fatimah Che Sulaiman
  • Siti Madhihah Abd Malik

DOI:

https://doi.org/10.2478/eoik-2024-0042

Keywords:

Household income, household expenditure, household size, statistical approach

Abstract

Malaysian households have exhibited significant improvements in
the standard of living and economic opportunities. However, a larg-
er household income does not always translate into an economically
comfortable household. Regional variations in income and expendi-
ture levels need to be explored for better understanding on the diversi-
ty of experiences among Malaysian households. Therefore, this study
aims to investigate the pattern and relationship between household
income, household expenditure, and household size among states in
Malaysia. Several methods have been used such as the Pearson cor-
relation coefficient, paired t-test, and multiple regression model using
IBM Statistical Package for the Social Sciences (SPSS) version 27
and Microsoft Excel for the year 2016, 2019 and 2020. Descriptive
results showed that despite the significant increase in household me-
dian income, households seemed unable to allocate the income incre-
ment to their expenses, possibly due to higher living costs requiring
adjustments in expenditure. Results also showed that the expenditure
growth rate outpaces the income growth rate drastically in a few
states such as Negeri Sembilan and Putrajaya. The inferential results
have shown that there is a significant difference in the mean monthly
household median income and the mean monthly household median
expenditure across states in Malaysia between 2016 and 2019. Mul-
tiple regression revealed that household median income significantly
predicted household median expenditure, while household size is not
significant. This study suggests government to regularly review the
prices of essential goods and services to ensure they remain affordable
for all households. This is crucial for improving the living standards
and well-being of Malaysians.

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Published

2024-09-04

How to Cite

Zakaria, S., Fatimah Che Sulaiman, N. ., & Madhihah Abd Malik, S. . (2024). EXAMINING THE PATTERN OF HOUSEHOLD MONTHLY INCOME AND EXPENDITURES BY STATE IN MALAYSIA. ECONOMICS - INNOVATIVE AND ECONOMICS RESEARCH JOURNAL, 12(3). https://doi.org/10.2478/eoik-2024-0042