More Bumi households in lowest income category, Khazanah study finds

Khazanah Nasional deputy chairman Tan Sri Nor Mohamed Yakcop and Khazanah Research Institute (KRiS) managing director Datuk Charon Mokhzani at the launch of the ‘The State of Households Report’ at Khazanah Research Institute, November 17, 2014. — Picture by Choo Choy May
Khazanah Nasional deputy chairman Tan Sri Nor Mohamed Yakcop and Khazanah Research Institute (KRiS) managing director Datuk Charon Mokhzani at the launch of the ‘The State of Households Report’ at Khazanah Research Institute, November 17, 2014. — Picture by Choo Choy May

KUALA LUMPUR, Nov 17 — Bumiputeras have higher proportions of households earning less than RM2,000 a month, compared with ethnic Chinese and Indians, Khazanah Research Institute (KRiS) said today in a research book on the state of households in Malaysia.

Comparatively, Chinese and Indian households have a higher proportion of households earning more than RM5,000 per month, based on 2013 statistics obtained from the Department of Statistics (DoS).

In total, 23 per cent of total Malaysian households earn less than RM2,000 a month, 55 per cent less than RM4,000 a month and 74 per cent less than RM6,000 a month.

26 per cent of Bumiputera households and 32 per cent of households in the residual category other than the three main ethnic communities in Malaysia, earn less than RM2,000 per month.

Chinese and Indian households which earn less than RM2,000 stand respectively at 14 per cent and 20 per cent.

The KRiS study also found that lower income households tend to be disproportionately affected by rising food and utility prices as they spend more on food, housing and utilities compared to households earning more than RM5,000.

The vast majority of Malaysian households (4.36 million/74 per cent) earn less than RM6,000 per month and it is this household bracket most affected by the rise of food prices compared to the country’s top 9.7 per cent of households which earn more than RM10,000 monthly.

“The less a household can spend, the higher the proportion of its expenditure on food, housing and utilities, and the more it is affected by a rise in the prices of these,” KRiS managing director Datuk Charon Mokhzani said.

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