Have you ever wondered?
Well, according a set of 2010 data published by the Department of Statistics, an average Malaysian household of approximately 4 members spent close to MYR2,200 per month on the following:
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[2522] What does a typical Malaysian household spend on?
12 replies on “[2522] What does a typical Malaysian household spend on?”
@Hafiz
My reading of the differential expenditure/spending habits of the various Malaysian populace is in repect of the 40% lower medium income group ie those with monthly household income of less than RM2500 and below in 1999 or RM4000 in 2009 for a typical urban family. The current monthly household medium income level of RM4000 is no better than the RM2500 income in 1999 in view of the relatively higher costs of living now. This mean there will ahardly be any balance to save or invest. Consequently, these scenarios necessitate the so call ‘cultural practice’ by some of the more discerning populace(those with pragmatic mindsets and values)to save for rainy days and investment for future good education needs(treating savings and investments as ‘expenditure at present value’)
Fortunately the government increased substantially the salary of the civil servants thrice over the last 6 years ,effectively reducing the income gap of most of the lower income group bring the civil servants closer to the more enterprising private sector workers(subsisting with 2 jobs or more members of household working)
[…] also believe this (the total series) should be read with my entry on 2010 average household expenditure (which states that average nominal expenditure was RM2,200) and the 1999 average household […]
I’ll tell you what’s insane about this.
You’ve paid with credit card for clothes you’re wearing to a job you may not really want to get out of bed for.
You drive to your office in a jam incurring unnecessary costs in a car you’re working your butt off to pay for.
You come back to a house only at night even though it takes 20% of your salary every month to pay off for 20 years.
Repeat this cycle for 26 days a month.
Now, are you Malaysians sane?
@Hafiz
Somehow I have doubts on the study you mentioned. The data were not reflective on the realities of todays living conditions of the populace, the downtrodden which constitute 40% of Malaysians of all races. Currently, a majority of this poverty level populace can hardly survive the high costs of living especially those in urban areas(I mean they do not have the choice of the quality of food they eat, the house and place they want to stay nor the right education they need). Their only hope for upward mobility is the relatively cheap public schooling system provided they make it through the system right upto university and then to the public service employment of last resort if no better employment attainable in other sectors.
These scenarios lead me to theorise that the mindsets and values of each Malaysian of diversed cultures determine their needs and wants in prioritising their expenditures and consequently(at least for the more pragmatic populace)the ‘street sense’ of treating savings, insurance, house financing costs and any other forms of saving for future expenditure as ‘expenditure at present value’. Sort of ‘A Prudent way of layman economics and living within ones means’. ‘Hire purchase for things we want is living in a dream’
Technically, only the “consumption” part of housing is included under the CPI i.e. the amount of housing “services” consumed. This is best modeled by market-based rentals, not house prices. Since many people own their homes, the actual amount included under the expenditure survey and the CPI is imputed rent, not what they pay for financing. So the figure you see here is not necessarily cash outgoings.
@The taxpayer
House is only savings in streets sense, but as far as the technical classification goes, it’s considered expenditure, i.e. rent. I know it’s a peculiar way of doing it but that’s how the data is based on if I’m not mistaken. The point is, investment and savings are not included in this data. I’m not arguing about culture. Assuming what your said is right, it wouldn’t show in the data.
Anyway, it’s hard to talk through anecdotes. Here’s a presentation hard data on 1999 household expenditure study based on race: http://www.digitalibrary.my/dmdocuments/malaysiakini/266_02Dr_Andrew.p df
Do check page 23, 24 and 27.
@ Hafiz
Housing ie the financing part of it is “savings” right! and 1% only for education! unless every kids are under scholarship!Thats why I mentioned the chart is typical of an everage Malay family or even an elite Malay family,or at least perceived as so by others.Restaurants and hotels expenditure at 11%! is also typical of the Malay households. The others use their savings if any for such ‘Luxuries’. We Malaysians of diverse cultures have very differing “mindsets and values”.
@The tax payer
Like I’ve mentioned, the graph includes expenditure only. Saving is not included.
@Hafiz
I do like you to be in the shoes of a middle income chinese family heads of household to appreciate the dilemma and importance these families placed on educating their kids. They need to set aside up to 30% of their income either as savings or invest in education linked insurance for their children education. For those who live from hand to mouth they have to borrow for their children education needs.
@The tax payer
I’d like you to consider that saving isn’t spending. Many parents save for their children education. Even when they actually spend especially in a big way, it’s only temporarily and not sustained spending. I suspect these big temporary spending are spread out over some unit time (12 months?) to get the expenditure.
Besides, a similar profile Chinese family is unlikely to afford spending 30% of their income on education. Food and utilities will dominate any family with such low/mid income.
If a family earns RM10,000 per month, then it’s a different story.
But again, the breakdown is an average. It isn’t exactly Malay or Chinese.
These data would represent quite an accurate expenditure of a middle income family of four for the urban Malay(small household). However, a similar sized Chinese family would have to allocate at least 30% of their income towards funding their children’s education.
Not realistic.
Some of the figures look skewed by other factors.
Especially on housing and transport.