With the cost of living still being a major concern for many Malaysians, newly highlighted data has shown that a large number of workers in the country are still earning RM5,000 or less a month.
Chief economist at Bank Muamalat Malaysia Berhad, Dr Mohd Afzanizam Abdul Rashid said around 70.2% of Malaysian formal-sector employees earned monthly wages of RM5,000 and below as of December 2025.
Majority earn RM5,000 and below
The figure was highlighted amid concerns that many workers may still be struggling to keep up with rising living costs, especially those living in major urban areas.
The economist warned that while RM5,000 may sound like a decent figure on paper, it may not be enough for some households once rent, food, transport, childcare, loans and other daily expenses are taken into account.
This is especially true for families with dependants in cities, where the cost of maintaining a decent standard of living can be much higher.
KL family may need over RM6K a month
Dr Mohd Afzanizam also said that a married couple aged between 18 and 29 with two young children in Kuala Lumpur would need around RM6,183 a month to meet essential living expenses.
In comparison, a family of the same size living in Kuala Terengganu would require around RM3,845 a month.
He said this shows how location plays a major role in determining a household’s purchasing power and disposable income.
Some still earning below RM1,700
DOSM’s Employee Wages Statistics for the formal sector also showed that 8.4% of Malaysian formal employees earned below RM1,700 in December 2025.
Meanwhile, percentile analysis found that the bottom 10% of Malaysian formal employees received monthly wages of RM1,700 or less.
On the other end, employees in the 90th percentile earned at least RM11,122 a month.
Financial resilience still a concern
Afzanizam also said financial resilience is not only about how much a person earns, but also how they manage their money and debts.
He pointed out that personal loans remain one of the main contributors to bankruptcy cases, followed by business financing, vehicle hire-purchase loans, housing loans and credit card debt.
The data has once again sparked discussion over whether wages in Malaysia are keeping up with the cost of living, especially for young workers and families in urban areas.
