KUALA LUMPUR: Malaysians living in urban areas require a minimum monthly income of around RM3,000 to meet basic living expenses, economists say — a figure far higher than the government’s RM1,700 minimum wage, which often forces city-dwellers to take on multiple jobs.
Malaysia University of Science and Technology (MUST) Professor Emeritus Dr Barjoyai Bardai said minimum wage policies must consider location and job type, as urban living costs differ greatly from rural areas.
“A RM1,700 salary might be adequate for unskilled roles like factory work or security services, especially for foreign workers. But locals in cities face higher expenses — rent, utilities, and family support — whereas foreign workers often share cramped housing, spend less on food, and remit most of their income home,” he explained.
He added that many Malaysians in tourism, plantation, and agricultural sectors still earn below the RM1,700 mark, even after the latest minimum wage came into effect on Aug 1, leaving them under financial strain. However, Barjoyai cautioned that a sudden wage hike could hurt micro, small, and medium enterprises (MSMEs), potentially forcing some to close.
“A sustainable solution would be to invest in reskilling and upskilling programmes so Malaysians can move into higher-paying jobs,” he said.
Universiti Putra Malaysia (UPM) Faculty of Human Ecology Dean Dr Mohamad Fazli Sabri suggested that urban residents ideally need between RM2,300 and RM5,000 a month to cope with daily expenses, based on the Basic Expenses for Decent Living (PAKW) benchmark.
He said a single person living in Kuala Lumpur could spend about RM2,200 monthly on essentials such as rent, transport, and food — excluding savings, insurance, or emergency funds.
“While the minimum wage is a useful starting point, it needs to be reviewed. The 50:30:20 rule — spending 50% on necessities, 30% on wants, and 20% on savings or debt — only works if earnings keep pace with living costs,” he said.
“In reality, many cannot survive on the minimum wage alone and must supplement their income through part-time jobs, small businesses, or investments. The government should revisit wage policies to reflect the actual cost of living and help Malaysians escape financial hardship,” said Mohamad Fazli, who is also vice-president of the Malaysian Financial Planning Council (MFPC).
