Expenditure Guide for Malaysians 2021
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Expenditure Guide for Malaysians
Klang Valley
Johor Bahru
Kota Kinabalu
Kuala Terengganu
Alor Setar
Kuantan
Kota Bharu
Georgetown
Kuching
Ipoh
Melaka
Seremban
2021
BELANJAWANKU 2021 Expenditure Guide for Malaysians Selected Region & Cities Klang Valley Johor Bahru Kota Kinabalu Kuala Terengganu Alor Setar Kuantan Kota Bharu Georgetown Kuching Ipoh* Melaka* Seremban* Research Team Social Wellbeing Research Centre (SWRC), Universiti Malaya Emeritus Professor Datuk Dr. Norma Mansor Nik Noor Ainoon Nik Osman Dr. Halimah Awang Dr. Zulkiply Omar Muhammad Hazim Noran Rashid Ating Hazman Abdul Rahman Faculty of Business and Economics, Universiti Malaya Dr. Sharifah Muhairah Shahabudin En. Nawi Abdullah Dr. Nurul Huda Mohd Satar Dr. Roza Hazli Zakaria Dr. Yong Sook Lu Dr. Ng Yin Mei * Preliminary
TABLE OF CONTENTS
Acknowledgement IV
1. Introduction 1
2. Issues and Challenges 3
3. Objectives 8
4. Use of Belanjawanku 9
5. Data and Method 11
5.1 Focus Group Discussion (FGD) 11
5.2 Questionnaire Survey 12
5.3 Price Survey 12
5.4 Delphi Method 12
6. Constructing Belanjawanku 13
6.1 Defining Standard of Living 13
6.2 Defining Household Categories 14
6.3 Development of Item Baskets 14
6.4 The Agreed Item Baskets 15
6.5 Pricing Criteria 16
7. Development of Item Baskets 17
7.1 Development of Food Basket 17
7.1.1 Pricing Criteria for Food Basket 17
7.2 Development of Housing Basket 18
7.2.1 Pricing Criteria for Housing Basket 19
7.3 Development of Transportation Basket 20
7.4 Development of Utility Basket 22
7.4.1 Pricing Criteria for Utility Basket 23
7.5 Development of Personal Care Basket 24
7.5.1 Pricing Criteria for Personal Care Basket 24
7.6 Development of Healthcare Basket 25
7.6.1 Pricing Criteria for Healthcare Basket 26
7.7 Development of Childcare Basket 27
7.8 Development of Ad-hoc Expenses Basket (allocated as monthly average) 28
7.8.1 Pricing Criteria for Ad-hoc Expenses 28
7.9 Development of Social Participation Basket 30
7.9.1 Pricing Criteria for Social Participation Basket 30
II7.10 Development of Discretionary Expenses Basket 31
7.11 Saving 32
8. Belanjawanku 2021 Estimates by Household Categories 34
8.1 Estimated Monthly Expenses: Single Public Transport User (P.T.U) 34
8.2. Estimated Expenses: Single Car Owner (C.O) 35
8.2.1 Increase in Expenses for a Single Person 35
8.3 Estimated Monthly Expenses: Married Without Children 36
8.4 Estimated Monthly Expenses: Married With One Child 37
8.5. Estimated Monthly Expenses: Married With Two Children 37
8.6. Estimated Monthly Expenses: Senior Single 38
8.7 Estimated Monthly Expenses: Senior Couple 39
8.8 Estimated Monthly Expenses: Single Parent With One Child 40
8.9 Estimated Monthly Expenses: Single Parent With Two Children 41
9. Belanjawanku 2021 Total for All Selected Cities / Region 42
9.1 Comparing Belanjawanku 2021 for Selected Cities Against Klang Valley 42
9.2 Belanjawanku 2021; Comparing Expenses Between Household Categories 43
10. Comparing Years 2020 and 2021 for Klang Valley according to Household
Categories 46
11. Impact of COVID-19 Pandemic on Consumption and Personal Finance 49
12. Conclusion and Recommendations 52
13. Moving Forward 53
LIST OF TABLES 54
LIST OF FIGURES 55
LIST OF DIAGRAMS 55
REFERENCES 56
APPENDICES 59
ANNEX: NOTES ON THE DEVELOPMENT OF ITEM BASKETS i
IIIAcknowledgement
We would like to express our gratitude to those who have contributed their inputs, ideas,
comments and critics to this research project, and for spending their precious time to be our
focus group discussion participants, informants and facilitators as follows:
● The management and staff of Employees Provident Fund (EPF) Malaysia
● Researchers from Universiti Malaya (UM), Universiti Malaysia Terengganu (UMT), Universiti Sultan
Zainal Abidin (UniSZA) Terengganu, Universiti Malaysia Sabah (UMS), Universiti Perguruan Sultan
Idris (UPSI), Universiti Teknologi Mara (UiTM), Seremban, University of Nottingham Malaysia,
Institut Pembasmian dan Pengurusan Kemiskinan (InsPEK), Universiti Malaysia Sarawak (UNIMAS),
The Netherlands Institute of Family Finance and Budgeting (NIBUD).
● Representatives from the following:
● Department of Statistics Malaysia (DOSM)
● Credit Counselling and Debt Management Agency Malaysia (AKPK)
● Economic Planning Unit (EPU), Prime Minister’s Department, Malaysia
● The National Wage Council Malaysia
● Bank Negara Malaysia (BNM)
● Universiti Malaya Medical Centre (UMMC)
● International Centre for Education in Islamic Finance (INCEIF)
● Ministry of Domestic Trade, Co-operatives and Consumerism (KPDNKK)
● Federation of Malaysian Consumers Associations (FOMCA)
● Welfare Department, Ministry of Women, Family and Community Development
(KPWKM), Malaysia
● Yayasan Hasanah Malaysia
● Kesatuan Kakitangan Am Universiti Malaya (KEKAUM)
● Giatmara Malaysia
● ACE Group Sdn Bhd
● Persatuan Ibu Tunggal Kuala Terengganu (PERKIBUT)
● Traders at Larkin Sentral, Mazlee Express, A-Mart and Pandan City Wholesale
Market, Johor Bahru, Johor
● Traders at Pasar Payang, Warong Kuala Ibai, Terengganu
● Traders at Warong Taman PKNK, Pasar Kampung Berjaya, Kampung Nelayan and
Pasar Teluk Wanjah, Alor Setar, Kedah
● Traders at Pasar Lido and Pasar Besar Kota Kinabalu, Sabah
● Traders at Pasar Besar Kota Bharu, Pasar Siti Khadijah, Pasar Jelawat and Pasar
Bachok, Kota Bharu, Kelantan
● Traders at Pasar Besar Kuantan, Pasar Taman Peramu Jaya, Pasar Tanjung Api,
Gading Jaya Wet Market, Kuantan, Pahang
● Traders at Bertam Market, Bayan Baru, Seberang Jaya, Bukit Mertajam, Chai Leng,
Samagagah, Tun Sardon, Batu Lanchang, Chowrasta and Pulau Tikus Public
Market, Penang
● Traders at Pasar Besar Ipoh, Pasar Gunung Rapat Pasar Kampung Bercham and
Pasar Kampung Simee, Ipoh, Perak
● Reference persons representing selected households in the Focus Group
Discussions
● Enumerators involved in the recruitment of participants in the selected cities and
regions
● Facilitators during the Focus Group Discussions in various cities and regions
IVWe wish to express our utmost gratitude to EPF for funding the research and development of
Belanjawanku. Last but not least, our sincere appreciation to the management and staff of
Social Wellbeing Research Centre, Universiti Malaya for their relentless support in the data
collection, organising and facilitating questionnaire surveys, focus group discussions, price
surveys as well as face-to-face and telephone interviews for verification at the selected cities
throughout Malaysia.
V1. Introduction
Belanjawanku is an expenditure guide which provides estimated minimum monthly expenses
on various types of goods and services for different family sizes in Malaysia. It is a budget that
can be used as information or a guide to one’s personal finance. Elsewhere, it is known as a
reference budget or budget standard that contains household expenditures, basket lists of
goods and services, and its cost thereof, that are needed for a family of a specific size and
composition to be able to live at a reasonable and acceptable level.
The circumstances of individuals and families are strongly influenced by both their income and
expenditure as well as by their needs. As such, apart from providing information, reference
budgets are also useful for personal financial planning and debt management for individuals.
On the other hand, financial institutions and debt counselors will find this useful for credit
scores and debt counselling. For policy makers, it can facilitate poverty measurement,
determinants of minimum wage and costs of living indicators.
The underlying motivation for the development of Belanjawanku is the concern related to poor
personal financial management among Malaysians and the rising costs of living. The way a
person manages his finances is significantly related to his financial literacy. Poor financial
management makes a person highly vulnerable to the impact of a financial shock such as loss
of employment, illness, disability, loss of loved ones or any unexpected events or emergencies.
The consequence of poor financial management leads to problems of over-indebtedness, low
savings and bankruptcy especially among youths. Having the capability to manage personal
finances is an essential life attribute in order to attain good financial wellbeing.
This study explores the spending patterns of Malaysian households, their needs, wants and
costs according to different compositions, disposable incomes and other characteristics that
reflect their circumstances. Based on the actual spending patterns, this study aims to identify
a specific basket of goods and services which can represent a particular standard of living or
wellbeing for individuals and families from various households in the country.
Since the circumstances of individuals depend very much on their income and expenditure,
this study provides details in terms of goods and services and the amount of money required
to have nutritious food, decent housing, access to utilities, adequate healthcare, personal care,
proper childcare, and to some extent, discretionary expenses. These outlay account for not
only needs that are basic, but also allow people to be involved in community activities as well
as gatherings of families and friends in order to engage with their society for a purposeful and
meaningful life.
Besides providing minimum monthly expenses required for people to attain a reasonable and
acceptable standard of living, Belanjawanku is able to indicate the actual costs of living as
evidenced from the spending patterns of households that were involved in the study.
Consequently, the expense guide provided by Belanjawanku can be used as a tool for financial
literacy education.
1The first wave of Belanjawanku (2019) covers the cities and districts in Klang Valley, namely
the Federal Territory of Kuala Lumpur, Putrajaya and the urban districts in the state of Selangor
which include Gombak, Hulu Langat, Petaling, Klang, Kuala Langat and Sepang. The
Belanjawanku Klang Valley 2019 was jointly launched by the Employees Provident Funds
(EPF), Malaysia and Universiti Malaya, officiated by the then Finance Minister, YB Mr Lim Guan
Eng.
The second wave of Belanjawanku was conducted between April 2019 to March 2020 covering
additional cities which include Alor Setar, Kota Kinabalu, Johor Bahru and Kuala Terengganu.
This study has since been expanded to include seven more cities comprising Kuching,
Georgetown, Kuantan, Kota Bharu, Ipoh, Seremban and Bandaraya Melaka. The current study
began in July 2020 and ended in May 2021, albeit impacted by intermittent disruptions to the
data collection process due to the Movement Control Orders (MCOs) resulting from the
COVID-19 pandemic. The objective of the expansion is to examine the differences in spending
patterns in different locations nationwide and to obtain a more precise indication of the cost of
living in those locations.
22. Issues and Challenges
The challenge of low financial literacy and increasing costs of living lead to over-indebtedness,
youth bankruptcy, low savings and fragile financial protection. Malaysia is one of the countries
where the financial literacy level among its citizens is relatively low. Governments around the
world have expressed concern about the low level of financial literacy among their citizens
(Atkinson & Messy, 2011).
In a national study for financial literacy, one of the findings associated low-income level with
relatively low financial knowledge (Financial Education Network (FEN), 2019). Bad habits or
poor attitudes toward personal financial management however, can be mitigated through
financial education. Evidence has shown that one in three Malaysians rated themselves as
having poor financial knowledge (FEN, 2019) and majority of them feel insecure with their
financial situations (FEN, 2019 and Mahdzan et. al., 2020). Financial literacy will enhance an
individual's ability to handle monetary issues and should reduce the negative consequences
of poor financial decisions that otherwise might take years to overcome (Yoong et. al., 2012;
Jonubi & Abad, 2013 and Idris et. al., 2017).
Malaysians have also experienced significant fluctuations in inflation rates due to higher prices
of food, fuel and transportation costs in the last decade. Between 2011 to 2020, the inflation
rate has fluctuated, reaching a high of 3.87 percent in 2017 before declining to 0.88 percent
in 2018 and hovering around 0.7 percent in 2019. Since March 2020, the MCO has indirectly
affected prices leading to a negative inflation of 1.2 percent in 2020 (Figure 2.1).
Nonetheless, further insights revealed that, in terms of CPI, despite a substantial decrease
mainly in the costs of transportation (-8.4 percent), housing, water, gas and other fuels (-3.3
percent), the prices of other main groups such as food and non-alcoholic beverages,
miscellaneous goods and services as well as health had registered an increase of 1.4 percent,
2.2 percent and 1.0 percent, respectively, when compared to the previous year (Department
of Statistics, Malaysia (DOSM, 2021a).
Figure 2.1: Malaysia: 10-Year Inflation Rate
Malaysia, 10 Year Inflation, 2011 to 2020
3.7
4.0 3.2 3.2
3.0
2.1 2.1 2.1
Inflation Rate (%)
2.0 1.6
1.0
0.7
1.0
0.0
2011 2012 2013 2014 2015 2016 2017 2018 2019 -1.2
2020
-1.0
-2.0
Year
Source: Department of Statistics Malaysia, various years
3Far from helping the situation is the issue of low wages among a large segment of Malaysians.
Although the income growth of the top 20 percent of the population (T20) since 1990 is in
tandem with the national GDP growth, the bottom 40 percent (B40) households experienced
the slowest growth (Samad & Mansor, 2017).
Although the median household income has improved from RM2,841 in 2009 to RM5,873 in
2019, more than 30 percent of Malaysian households were earning below RM4,000 a month
(DOSM, 2019). The DOSM, (2019) report also revealed that between 2016 to 2019, the income
growth (compounded annual growth rate, (CAGR) of the B40 was 1.8 percent, lagging behind
the M40 and T20 which enjoyed 4.1 percent and 4.5 percent growth respectively.
Despite the 2019 revision of the minimum wage to RM1,200 per month, its current adequacy
continues to be debated; yet on the other hand, concerns over productivity persists. The last
decade has seen the economy of Malaysia buffeted by a series of shocks which had
undermined productivity growth.
Post 2009 global financial crisis, Malaysia recorded a positive productivity growth of 3.4
percent in 2014 and maintained its growth of above 3 percent until 2017 before declining to
2.3 percent in 2018 and 2019 and subsequently plunged into negative territory of -5.5 percent
in 2020 (Malaysia Productivity Report (MPC), 2021). The COVID-19 pandemic is the latest jolt
that has negatively affected the economy. Our alarming labour productivity contraction was
the first since the 2009 global financial crisis and the lowest in ten years (MPC, 2021).
Following the problem of low financial literacy and increasing costs of living, over-indebtedness
is another thriving problem that can jeopardise health, family life, access to housing and
employment. Malaysia has emerged as the country with the highest household debt within the
ASEAN region, the highest among eight markets surveyed in Asia, which was more than
double the regional average of 33 percent (Mainal et. al., 2016). In 2020, the Malaysia
household Debt-to-Gross Domestic Product (GDP) surged to a record peak of 93.3 percent
(Figure 2.2). Bank Negara Malaysia (BNM) explained that it was due to the normalisation of
household debt to pre-pandemic levels in the second half of 2020, whereas the GDP remained
below pre-COVID-19 levels.
4Figure 2.2: Malaysia Household Debt-to-GDP Ratio
Malaysia Household Debt-to-GDP, 2014-2020
96.0 93.3
94.0
Debt-to-GDP Ratio
92.0
90.0
86.9 86.5
88.0
84.8
86.0
82.7 82.0 82.7
84.0
82.0
80.0
78.0
76.0
2014 2015 2016 2017 2018 2019 2020
Year
Source: Bank Negara Malaysia Annual Report, various years
However, BNM (2020) stated that that the high level of household debt-to-GDP ratio is
manageable as it expects households to stay reasonably resilient despite the impact of the
pandemic. This is reflected by the continued maintenance of comfortable levels of financial
assets and liquid financial assets (LFA) at 2.2 times and 1.5 times of debt in the second half of
2020 respectively, as relief measures introduced by the Government released extra disposable
cash to households (BNM, 2020)
While the level of household debt may be manageable, indebtedness or the inability to meet
recurrent expenses without the need to borrow more may put borrowers in vulnerable
situations. Research has shown that over-indebtedness, poverty and social exclusion are
found to be closely interrelated (Mainal et. al., 2016). BNM in 2019 highlighted that the risks of
financial distress relating to household debt exposure were higher among the lower income
group, i.e those whose monthly earnings are less than RM3,000 as well as for those with
variable income. BNM cautioned that this group remains stretched financially as it appears that
their financial buffers are relatively much lower, judging from their liquid financial assets (LFA)-
to-debt-ratio of 0.7, and a substantially higher leverage (of 10 times) compared to those in the
higher income groups, as of December 2020 (Figure 2.3).
At the same time, according to BNM, those earning less than RM5,000 monthly appear to be
showing signs of financial stress, judging from the profile of those seeking financial assistance
under the loan moratorium programme, of which, 54 percent consists of borrowers from this
income group. The central bank also cautioned that these borrowers are likely to face
continued challenges in 2021, given their low financial buffers and relatively higher leverage;
along with the uneven labour market recovery (Figure 2.3).
5Figure 2.3: Household Sector - Leverage and LFA-to-Debt Ratios
Household Sector - Leverage and LFA-to-Debt Ratios
12.0
10.0
9.5
8.0 7.1 7.4
Times
5.5 5.6
4.0 4.1
4.0
1.4 1.5
0.7 1.0
0.0active EPF members are unlikely to achieve the recommended minimum amount of basic
savings of RM240,000, at the age of 55, which allows a monthly withdrawal of RM1,000 for 20
years post retirement. This amount, however, still falls short of the current National Minimum
Wage of RM1,200 per month and below the National PLI of RM2,208 per month. With life
expectancy expected to keep on rising as a result of advancement in healthcare facilities,
inadequate retirement savings could pose a serious threat to the wellbeing of the elderly and
aging population (FEN, 2019).
Another red flag is the Malaysia gross household savings as a percentage of disposable
income which was recorded to be low even with compulsory retirement savings under
Employees Provident Fund (EPF). The Khazanah Research Institute (KRI) reported that in 2013
(the last year for which such data was publicly available), household savings stood at 1.4
percent of adjusted disposable income, and averaged at 1.6 percent for the years between
2006 to 2013 (Figure 2.4).
Figure 2.4: Comparing Household Savings as Percentage of Adjusted Disposable
Income - Malaysia and other Countries
Household Savings as Percentage of Adjusted Disposable Income, 2013
12.0
9.8
Gross Household Savings
10.0
8.0
5.6
6.0 5.0 4.7
4.0
2.0 1.4
0.0
0.0
Chile Korea US EU Malaysia Japan
Country
Source: Khazanah Research Institute, The State of Households II, 2016 (pg 78)
73. Objectives
Belanjawanku serves as a kick-start to the development of a guide for individual and family
finance and budgeting for different types of households. Belanjawanku is a reference budget
that translates individual needs and wants into goods and services that represent a reasonable
consumption level, hence allowing people to attain a designated standard of living and able to
fully participate in the society.
Firstly, the objective was to investigate the actual spending behaviour and consumption levels
of individuals and families according to the specific size and composition of households.
Secondly, Belanjawanku sought to establish baskets of goods and services and its costs
thereof, that represent an 'agreed upon' minimum expenditure or consumption level required
for a reasonable and acceptable ‘standard of living' in Malaysia.
Thirdly, Belanjawanku is intended to provide analysis on the cost of each item basket
comprising of food, housing, transportation, utilities, personal care, healthcare, childcare,
annual / ad-hoc expenses, social participation, discretionary expenses, and estimate the
expenditures required therein, and subsequently to arrive at a consensus on what is a
recommended reference budget for Malaysians.
Last but not least, Belanjawanku is to provide information for people to understand their own
financial capabilities before making big financial decisions that may affect their short to long
term financial commitments, as well as their future financial security. The objectives of
Belanjawanku are summarised in Diagram 3.1.
Diagram 3.1: Objectives of Belanjawanku
84. Use of Belanjawanku
As summarised in Diagram 4.1, for individuals, Belanjawanku is useful as a guide in making
informed financial decisions before committing on big ticket purchases or having large loan
obligations. Besides that, Belanjawanku provides indications on additional expenses (e.g.,
when family size grows) as people move along their life cycle from being a single person to a
family man and into their old age.
The different guide for different cities as provided in Belanjawanku will enable individuals to
assess their purchasing power, as opposed to their (potential) income, given the different costs
of living in different cities, if they were to relocate.
For policy makers, Belanjawanku has the potential to provide a benchmark against which to
assess individual spending patterns, and the appropriateness of the poverty threshold of a
country. It can be used not only as a guiding tool for an individual's prudent financial planning,
but also for policy makers to employ as an instrument to prevent and address the problems of
households’ over-indebtedness, reviewing poverty line incomes as well as in designing
appropriate minimum wage policies and adequate income support.
As for financial institutions, Belanjawanku is potentially useful for credit scores which can be
utilised as an assessment tool for loan capability repayment and for debt counselling for those
who are at risk of being financially distressed.
Diagram 4.1: Use of Belanjawanku
The Malaysian government has revised the Poverty Line Income (PLI) in June 2020 from
RM980 to RM2,208 per household per month (DOSM, 2019). The revision was to reflect a
more accurate poverty measurement in the country and that move was positively viewed by
various parties including the World Bank Group. Given the extensive data available to gauge
the ‘minimum required’ as outlined by Belanjawanku, it is hoped that policymakers could
further implement and craft targeted policies to overcome ongoing social issues such as
poverty and inequality in Malaysia. Social assistance policies such as Bantuan Sara Hidup
(BSH) and Bantuan Prihatin Nasional (BPN) are primary examples of how targeted policies
would be able to alleviate financial burden of the needy groups.
9In view of the above, it is evident that Belanjawanku is well poised to provide a scientific, yet
participative budget guide and offer valuable tools to assess the financial wellbeing of
households along with other social benefits as part of the government's effort to ensure social
inclusion among all Malaysians.
Bearing in mind though, a reference budget is not a prescription to solve an individual's
financial problems, nor is it a ‘standard’ that one has to follow. In this case, Belanjawanku
serves as a detailed guide as to the expenses required to attain the desired standards of living
with optimum expenses minus the luxuries.
105. Data and Method
This study adopted both quantitative and qualitative approaches using primary and secondary
data. The primary data collection was done via focus group discussions, questionnaire surveys
and price surveys at actual business premises. Secondary data was obtained through
published documents from various ministries and agencies, as well as online platforms. The
first wave of data collection for the development of Belanjawanku Klang Valley 2019, was
conducted from November 2017 to July 2018. The second wave of data collection was done
between June 2019 to September 2020.
The target groups were working adults between 18 to 40 years of age, and senior citizens
aged 60 years and above (working and not working) living within a 30-kilometer radius from
the city centre. A total of nine household categories were selected, as listed below:
● Single-person (public transport user)
● Single-person (car owner)
● Married without children
● Married with one child
● Married with two children
● Senior single
● Senior couple
● Single Parent with one child
● Single Parent with two children
5.1 Focus Group Discussion (FGD)
The first wave of data collection began in Klang Valley, of which 11 (eleven) Focus Group
Discussions (FGDs) comprising 69 participants were conducted. The first two FGDs were
intended to develop the definition of the designated costs of living as well as a pre-test for
developing the survey questionnaires. Subsequent FGDs were carried out to obtain the basic
understanding on expenditure patterns and categories of expenditures for urban households,
to validate the survey results and to arrive at a consensus on the basket of items and its costs
thereof.
The participants included researchers from local universities, representatives from Employees
Provident Fund (EPF), Credit Counseling, Debt Management Agency (AKPK), Economic
Planning Unit (EPU), The National Wage Council, NGOs, Bank Negara Malaysia (BNM),
practitioners from various industries including financial institutions and real estates, financial
planners, nutritionists, and reference individuals from specific households.
The second wave of data collection was performed via FGDs with the objective of developing
Belanjawanku for additional cities in Malaysia, namely Alor Setar, Kota Kinabalu, Johor Bahru
and Kuala Terengganu. A total of 97 (ninety-seven) FGDs were conducted involving 491
participants living and working within a 30-kilometer radius of the cities concerned. The series
of FGDs were conducted between July 2019 to March 2020.
115.2 Questionnaire Survey
A survey was conducted in Klang Valley to investigate the actual spending patterns of
individuals and families using structured questionnaires adapted from the Household Income
and Expenditure Survey (HIES) 2009 questionnaire, Department of Statistics, Malaysia; as well
as inputs from the earlier section of the qualitative study. A purposive sampling method was
employed targeting working individuals and couples between the ages of 18 to 40 years old
working in Klang Valley and living within a 30-kilometer radius from their workplace.
In the interest of time and cost, the survey was conducted via self-administered as well as face-
to -face interviews. A total of 1,200 structured questionnaires were distributed where 756
(63%) questionnaires were returned and 677 (56%) were found to be usable. The data
collected between March to July 2018 generated valuable information towards the
development of Belanjawanku 2019 for Klang Valley.
As for Belanjawanku 2020, for Klang Valley, telephone interviews were conducted with
reference individuals from past FGD groups. For Belanjawanku 2021, a survey was conducted
online to update the figures for Klang Valley as well as for additional cities included in our study
for 2020 namely Alor Setar, Kota Kinabalu, Kuala Terengganu and Johor Bahru. The survey
was conducted via Google forms and sent to selected existing email contacts of which a total
of 69 had responded.
5.3 Price Survey
In order to obtain indicative costs of goods and services, price surveys on the proposed item
baskets were done prior to conducting the FGDs in all the respective cities. The price surveys
were carried out at actual business premises such as supermarkets, wet markets, local
sundries / convenience stores and pharmacies.
Additionally, information was also gathered from published documents from Department of
Statistics Malaysia (DOSM), BNM, various ministries and their agencies, local energy and utility
providers and reports from local governments in various states across Malaysia.
The prices were used as indicative costs for the item baskets and as a guide for facilitators
during the FGDs. However, caution was exercised by the facilitators in order not to influence
the participants' responses, thus avoiding researcher bias.
5.4 Delphi Method
Due to the MCO which began on 18 March 2020, data collection via FGDs could not be
employed for the remaining cities, namely Kuantan, Kota Bharu, Georgetown, Kuching, Ipoh,
Melaka and Seremban. A Delphi Method was instead utilised, via a series of interactive
questionnaires sent to reference individuals from each household category as per the nine
target groups mentioned above. Experts comprising of academicians in the selected cities
were also recruited as participants. This method of data collection was used with a goal of
reaching a group consensus.
126. Constructing Belanjawanku
The construction of Belanjawanku involved seven stages. Each phase involved various groups
of discussants as follows:
Table 6: Construction of Belanjawanku
Stage Group Purpose
1 Orientation Group To discuss and agree on an acceptable minimum and the
• Experts definition of designated standards of living
• Academicians
• Research Team
2 Experts Consultation To identify and develop item baskets and classify
& Research Team household components
3 Task Group To discuss, negotiate and agree on acceptable minimum
• Representatives from items required and the costs thereof, so as to provide an
various household indication of the minimum acceptable amount
categories
• Facilitators
4 Consensus Group To review and adjust item compositions, prices and life
• Representatives selected span of baskets of goods and services in order to obtain a
from each household consensus
group
• Facilitators
5 Check back / Review Group To review the budgets, look at anomalies in budget
• Academicians patterns on the total budget costs and challenge the
• Experts consensus, if need be, to draft budget estimates
• Researchers
6 Research Team & Workshops and discussion for presentation and approval
Stakeholders’ by stakeholders
Representatives
7 Research Team Final draft of budget estimates for approval by
stakeholders
6.1 Defining Standard of Living
In stage one of the Belanjawanku preparation, participants in the ‘Orientation Group’ which
consist of academicians and experts agreed that the standard of living in question be defined
as:
“Having adequate financial resources to afford not just the minimum basics
but also the ability to participate in a society for a reasonable and dignified living”
(Social Wellbeing Research Centre, 2019)
136.2 Defining Household Categories
In order to allow for varying needs of different household categories, in stage two, the FGD
participants of expert group and researchers agreed that the age groups and composition of
household members be referred to as follows:
● Single individuals, single parents and married couples: 18 to 40-year-old males and
females
● Child 1: newborn to 6-year-old males and females
● Child 2: 7 to 13-year-old males and females
● Married with one child: male and female partners with Child 1
● Married with two children: male and female partners with Child 1 and Child 2
● Senior single and couples: 60-year-old and older, males and females
● Single parent with one child: male or female parent with Child 1*
● Single parent with two children: male or female parent with Child 1 and Child 2*
As for Klang Valley, updates were made to include the changes in costs for 2021 as well as
the new categories of households, *namely single parents with one and two children. This was
made after obtaining feedback and inputs from stakeholders, taking into consideration the
costs of living and different amounts of expenses incurred by these two categories of
households.
6.3 Development of Item Baskets
Item baskets herein refer to baskets of goods of consumer products and services of which the
selection is adapted from the DOSM’s Household Income and Expenditure Survey (HIES),
2009. Participants agreed that the following general assumptions be used as a basis for
development of item baskets:
● Access to healthcare services is universal
● Access to primary and secondary education is universal
● Housing cost for a single person is based on rental value
● Housing cost for families is based on estimated monthly mortgage repayment or rental
value, whichever is lower
● Children are sent to babysitters (no domestic maid)
● Where price survey is not possible, the pricing criterion for basket will be the price
unanimously agreed by participants of the FGDs
● Couples are assumed to own a car and a motorcycle
● Travel distance to and from work is within 30 km radius
● People are generally healthy
● People are informed and have the necessary competence to make informed decisions
● The retailers / shops are reachable and accessible for all households
● Households are not expected to buy second-hand goods, nor are they dependent on
receiving free items from friends or families
146.4 The Agreed Item Baskets
Participants in the focus groups also agreed that the item baskets should include food and
non-alcoholic beverages, housing, transportation, utilities, personal care, healthcare,
childcare, ad-hoc expenses, social participation and to some extent, discretionary expenses
(Diagram 6.1).
Diagram 6.1: Item Baskets
Basket Description
Food & non-alcoholic beverages consisting of groceries for home cooking,
eating out and takeaways
1. Single person - cost is based on monthly rental for fully furnished rooms
2. Married / Families / Elderly Single / Couples / Single Parents - cost is
based on monthly housing loan repayment / rent, whichever is lower
Monthly bills for water, electricity, pre / postpaid telephone / internet /
personal data plan and ASTRO TV
1. Public - all public transportation using season tickets or monthly passes
(where available)
2. Private vehicles - including vehicle loan instalment, fuel, highway tolls
and parking charges
Includes care for body, hair and feminine hygiene, oral hygiene and basic
personal grooming
3 x visits to private doctors (general practitioners) and 1 x visit to private
dentists a year for treatment of common non-acute illnesses or injuries
(annual total divided by 12 months)
1. Child 6 years and below - baby-sitting, diapers, milk and baby food
2. Child 7-13 years - including daycare, pocket money, tuition, religious
classes and extra-curricular activities
Ad-hoc / one off expenses consisting of vehicle maintenance, road tax &
insurance, school registration fees, clothing & footwear, instalment of
furniture & domestic appliances, maintenance of household furniture &
appliances (annual total divided by 12 months)
Includes festive celebrations, birthdays, anniversaries, invitations to
weddings etc. (annual total divided by 12 months)
Includes contribution to parents, medical insurance, sports and recreation
as well as vacation, depending on individual priorities (annual total divided
by 12 months)
15Amount allocated for each household is based on the focus group
participants’ indication of their ability to save and how much is deemed to
be sufficient
6.5 Pricing Criteria
The data on prices of goods and services (items in the basket) were obtained via online
shopping sites, catalogues and surveys at selected business premises. The sites for obtaining
data on prices, whether online or at the business premises, are taken from popular examples
which include Lazada, Shopee, Tesco, Giant, Mydin, Guardian, Watsons and local
supermarkets popular among the locals.
For cost calculation, the first quartile (25th percentile) price on product brands range was
taken as the cut-off point. Where product choices are limited, the average price was used.
Special offers and festive season prices were not considered in order to eliminate seasonal
fluctuations.
For consistency, special offers/discounts/seasonal prices are not considered. Prices are
applicable during the specific survey period.
Expenses that are not incurred monthly are calculated based on annual total divided by 12
months to get an average monthly cost
167. Development of Item Baskets
Based on the agreed number of item baskets and their pricing criteria, the individual item
baskets were further developed with the following details:
7.1 Development of Food Baskets
Food Baskets refer to food and non-alcoholic beverages. The baskets comprises of home
cooked food, dine in and takeaway. As a general principle for food security1, the development
of the food baskets is based on the Malaysian Dietary Guideline (MDG) 2017, set by the
Ministry of Health, Malaysia. The MDG is the official healthy eating guide for Malaysians which
is based on nutritional requirements according to the Recommended Nutrient Intakes (RNI,
2017). The energy intake recommended by the MDG is between 1,500 – 2,500 calories per
person per day (with reference to age group of between teen children to adults).
For the purpose of this study, an average of 2,000 calories per person per day is applied for a
reference family of four. Based on the RNI 2017, we listed the items according to the
recommended Malaysian Food Pyramid 2010 and allocated the quantity required for
consumption and its costs, on a monthly basis. In order for the food baskets to be adequate,
the underlying premise for the construction food baskets are as follows:
● The function of the food is for fulfilling basic nutrition as well as for a reasonable
amount of social and gastronomic purpose (pleasure)
● People have the capacity and time to cook healthy meals at least once a day
● Food baskets are healthy, varied and balanced
● Costs of take-away meals and dining out is traded off with costs of home cooking
● Baskets only cover costs directly related to food - other costs (such as
transportation or getting sufficient information) are to be covered by other baskets
● Individuals and households consume food 5 times a day, namely breakfast, lunch
and dinner, as well as morning and afternoon tea breaks
7.1.1 Pricing Criteria for Food Baskets
Prices for baskets of food and groceries for home cooking were obtained from the actual
business premises of popular wet markets, supermarkets and local sundry shops
encompassing various locations in the cities selected for Belanjawanku study. The product
choice was taken from four (4) or more popular product brands. The 25th percentile price is
taken for calculation of costs and cross checked online for comparison with DOSM’s selected
CPI list of selected goods and services, Federal Agricultural Marketing Authority (FAMA),
Fisheries Development Authority of Malaysia (LKIM) and Ministry of Domestic Trade and
Consumer Affairs (KPDNHEP).
1
Food security refers to the condition in which all people have access to sufficient safe and nutritious food that
meet their dietary needs and food preferences for an active and healthy life – United Nations Committee on World
Food Security, 1996
17Costs for dining out and takeaways were obtained from the average food prices at food courts,
and mid-range restaurants as well as food delivery services sites (Grab and Food Panda)
serving mixed rice (nasi campur), cooked / fried rice or noodles, across various locations in
the selected cities.
While Klang Valley prices were updated based on comparison with the prevailing price listing
and verification from former participants of FGDs, prices for the other cities were collated via
actual visits to the business premises in Kota Kinabalu, Johor Bahru, Kuala Terengganu, Alor
Setar, Kuantan, Kota Bharu, Georgetown, Kuching, Ipoh, Seremban and Melaka.
The focus group participants comprising reference persons of each household categories
agreed that the amount of monthly expenses to be allocated on food and beverage are as
follows (Table 7.1):
Table 7.1: Estimated Monthly Expenses (RM): Food
Household Category
Single Single Married Married Married Senior Senior Single Single
(Public (Car (w/o (1 (2 Single Couple Parent Parent (2
City /Region Transport Owner) Children) Child) Children) (1 Children)
User) Child)
Klang Valley 580 580 920 1350 1610 580 890 1010 1270
Alor Setar 500 500 790 1100 1310 500 760 820 1030
K. Kinabalu 550 550 850 1200 1430 550 830 900 1120
Johor Bahru 580 580 900 1330 1590 580 890 1010 1270
K. T'ganu 540 540 840 1170 1390 540 820 880 1100
Kuching 540 540 840 1170 1390 540 820 870 1090
Kuantan 540 540 840 1170 1390 540 820 880 1100
Kota Bharu 510 510 810 1120 1330 510 780 830 1040
Georgetown 560 560 880 1310 1560 560 860 990 1240
Ipoh* 550 550 850 1190 1430 550 830 890 1120
Seremban* 550 550 860 1220 1450 550 840 900 1140
Melaka* 550 550 850 1200 1430 550 830 890 1120
*Preliminary
7.2 Development of Housing Baskets
Housing is the largest monthly expenditure for any household in Malaysia. On average, it
commands around 24 percent of total monthly expenditure (DOSM, 2016). Housing
affordability is one common concern in discussing the issues related to urban housing. Based
on the standards set by the Office of the United Nations Office of The High Commissioner for
Human Rights (OHCHR), there are six central elements of adequate housing which must, at a
minimum, meet the following criteria:
● Security of tenure
● Affordability
● Habitability
18● Accessibility of location
● Cultural adequacy and social acceptability
● Availability of services, materials, facilities and infrastructure
The locations of accommodations are taken from within 30km radius of the urban districts of
Klang Valley, Kota Kinabalu, Johor Bahru, Kuala Terengganu, Alor Setar, Kuantan, Kota Bharu,
Georgetown, Kuching, Ipoh, Seremban and Melaka. Although there are no detailed profiles in
terms of specific neighbourhoods, the locations chosen in this study, must generally at the
very least, have access to employment and important amenities such as education and
healthcare, as outlined by the United Nations OHCHR (2014).
For the calculation of the reference budgets, as much as possible, we evaluate the adequate
housing principles outlined by the United Nations OHCHR, with particular emphasis on aspects
of affordability, which refer to ‘Personal or household financial costs associated with housing
should not threaten or compromise the attainment and satisfaction of other basic needs.”
(OHCHR, 2014: 4).
7.2.1 Pricing Criteria for Housing Baskets
Calculation of the housing costs is based on the following assumptions:
● A single person rents a fully furnished room
● Couples and families rent or own a 3-bedroom apartment/single/double storey link
house
● Except for a single person, the calculation of accommodation costs for families is taken
from the market rental values of unfurnished property or monthly mortgage
repayments, whichever is lower. For the latter, the property is low to medium cost of
RM200,000
● The costs of maintenance of the property, furniture and fittings, electrical appliances
and utilities are not included as part of the rental, as these are covered by other
baskets
The data collected were average room rental and house rental rates for four types of houses
namely flats, apartments and single / double storey link-houses from the selected districts used
in this study. References were also made to the National Property Information Centre (NAPIC)
to obtain insights on the current trend of real estate prices in Malaysia. Property prices were
also calculated based on prevailing market prices of PR1MA, Rumawip and affordable housing
under the Rumah Selangorku program as well as the individual states’ affordable housing
programs. Based on our calculation, the following are the estimates for housing costs for
different households (Table 7.2):
19Table 7.2: Estimated Monthly Expenses: Housing
Household Category
Single Single Married Married Married Senior Senior Single Single
(Public (Car (w/o (1 (2 Single Couple Parent Parent (2
City /Region Transport Owner) Children) Child) Children) (1 Children)
User) Child)
Klang Valley 370 370 1000 1000 1000 700 700 1000 1000
Alor Setar 200 200 580 580 580 400 400 580 580
K. Kinabalu 250 250 750 750 750 580 580 750 750
Johor Bahru 250 250 750 750 750 580 580 750 750
K. T'ganu 220 220 620 620 620 400 400 620 620
Kuching 250 250 670 670 670 460 460 670 670
Kuantan 230 230 600 600 600 410 410 600 600
Kota Bharu 200 200 580 580 580 400 400 580 580
Georgetown 300 300 900 900 900 680 680 900 900
Ipoh* 240 240 600 600 600 440 440 600 600
Seremban* 280 280 800 800 800 540 540 800 800
Melaka* 250 250 700 700 700 470 470 700 700
*Preliminary
In calculating the acceptable housing expenditure, comparisons were made between the
monthly costs of room / house rental to mortgages. For rental rates, the average flat / house /
room rental for several districts were obtained online at www.mudah.my and www.ibilik.com
as well as from the focus group discussions
7.3 Development of Transportation Baskets
Transportation is an essential element in estimating the costs of living in cities. People need
transport to get to work, to get access to goods and services that they need as well for social
engagements.
Living in a city that is highly populated means higher transportation costs due to the possibility
of living farther away from the workplace, as well as higher costs of parking and petrol
consumption. Calculating transportation costs is in general rather complicated as there are
various options or modes of transportation available.
There are also other different costs involved with each transportation mode for instance driving
involves tolls, petrol and parking fees which are not applicable to public transportation.
However, given the norms of the society where public transportation more often than not
becomes the second best alternative due to relatively inefficient systems as well as our climate
factor, we do include in our reference budget, the case where a single individual household
owns a car instead of using public transportation.
20Bearing in mind that the objective of this budget is to offer a guideline for an acceptable
standard of living with minimum expenditure, several assumptions were adopted in estimating
the transportation costs:
● Singles from 2 categories, either public transport users who commute using public
transportation such as buses, LRTs, MRT or commuter trains, or private car owners
● Couples who own a car and a motorcycle
● The type of car owned for single individuals and couples is a 1,000cc engine, while the
motorcycle is a 125cc engine. The assumption on type of car ownership is important
for estimation of petrol costs and vehicle maintenance, as well as the monthly
installment for the vehicles
● For senior couples, we assume that they own one car, hence, the lower transportation
costs for the seniors
● Transportation is mainly used for commuting to the workplace, running errands and
occasional visits to meet families and friends. The travelling distance is taken as 30km
to and from making a total of 60km per day, 30 days a month
● Transportation costs for other purposes are covered in other baskets
7.3.1 Pricing Criteria for Transportation Baskets
For public transportation, we take the average for all modes of transportation covering various
destination terminals within 30km radius.
As mentioned earlier, estimating expenses for private transportation involve more than one
component. Firstly, the monthly installment. Again, for the purpose of meeting the minimum
expenditure, we base such calculation on a vehicle loan with 100 percent margin of finance
(zero down payment) at the cheapest (prevailing) interest rate offered in the market at the time
of study for a tenure of 9 years. The same method is adopted in estimating the motorcycle
monthly installment, but with a shorter tenure of 5 years.
Meanwhile, the calculation of toll rates for cars is based on what is available on the official
website of Lembaga Lebuh Raya Malaysia. Parking rates are estimated using the season
parking rates for city councils, e.g. for Klang Valley, DBKL Car Monthly Parking Rental.
Based on the focus group discussions and our calculation, the monthly installment of a new
1,000cc car and 110cc motorcycle obtained from market surveys, plus the fuel, highway tolls
and parking charges; the estimated expenses for transportation are as follows (Table 7.3):
21Table 7.3: Estimated Monthly Expenses: Transportation
Household Category
Single Single Married Married Married Senior Senior Single Single
(Public (Car (w/o (1 (2 Single Couple Parent Parent (2
City /Region Transport Owner) Children) Child) Children) (1 Children)
User) Child)
Klang Valley 140 760 990 1000 1010 490 490 770 780
Alor Setar 130 620 840 850 860 490 490 630 640
K. Kinabalu 110 590 820 830 840 490 490 600 610
Johor Bahru 130 620 840 850 860 490 490 630 640
K. T'ganu 150 640 860 870 880 490 490 650 660
Kuching 90 580 810 820 830 490 490 590 600
Kuantan 140 620 840 850 860 490 490 630 640
Kota Bharu 120 650 870 880 890 490 490 660 670
Georgetown 140 690 910 920 930 490 490 700 710
Ipoh* 80 630 850 860 870 490 490 640 650
Seremban* 90 630 850 860 870 490 490 640 650
Melaka* 130 630 850 860 870 490 490 640 650
*Preliminary
It is noteworthy that when making comparisons for transportation expenses, the amount
increased almost threefold when a single person chooses to buy his own car instead of using
public transportation.
7.4 Development of Utility Baskets
The utility baskets consist of expenses on:
● Mobile telephones
● Cable TVs
● Internet
● Water
● Electricity
In considering the cost for each utility basket, we include the functions of utilities as an integral
part of human existence. Water for instance is used for drinking, cooking, washing and
cleaning. Electricity is used for lighting, cooking, heating, cooling, refrigeration; and operating
appliances such as computers, electronics and machinery. Whereas internet, communication
and entertainment are essential for human interactions and communication, education,
shopping and leisure. as well as entertainment. Therefore, in developing costs for the utility
baskets, the following pricing criteria was used:
227.4.1 Pricing Criteria for Utility Baskets
For calculation of household electricity cost, the underlying premises are:
● A single person shares the monthly bill with other 'housemates’
● For couples and families, the pricing of electricity bills is calculated based on the tariff
per kWh of total power consumption on a list of common household electrical
appliances obtained from the official website of Tenaga Nasional Berhad (TNB) for
states in Peninsular Malaysia, Sabah Energy Corporation Sdn Bhd for Sabah and
Sarawak Energy Berhad for Sarawak
For the pricing of internet, communication and entertainment, the following assumptions are
applied:
● A single person subscribes to a personal data plan package for telephone and internet,
and does not subscribe to home internet package and cable TVs
● Couples and families individually use personal data plan for mobile telephones, and
one household member subscribes to a home internet package and private cable TV
for the house
● The choice of product is made based on the relative value-for-money and the breadth
of coverage which may not necessarily be the cheapest
● It is also assumed that the head of household pays for a family pack basic TV
entertainment and internet plans
The source of pricing is obtained online from the official websites of local mobile data
providers, (e.g., Maxis, Unifi and Digi) and the official websites of the energy and water
providers of the states where the cities are located.
For calculation of water bills, prices are obtained from the official websites of the local water
concessionaires. In Klang Valley for example, the estimates were obtained from calculation of
average 26 cubic meters for 30 days of domestic use by Air Selangor. On average, a Malaysian
uses about 220 litres of water each day. For comparison purposes, calculation for other states,
however, shows negligible difference.
After taking into consideration all three main items as above, the focus groups participants
proposed that the amount of monthly expenses to be allocated on total utility bills are as follows
(Table 7.4):
23Table 7.4: Estimated Monthly Expenses: Utilities
Household Category
Single Single Married Married Married Senior Senior Single Single
(Public (Car (w/o (1 (2 Single Couple Parent Parent (2
City /Region Transport Owner) Children) Child) Children) (1 Children)
User) Child)
Klang Valley 90 90 310 320 330 150 290 270 280
Alor Setar 90 90 300 310 320 150 290 250 260
K. Kinabalu 90 90 280 290 300 130 260 240 250
Johor Bahru 90 90 300 310 320 150 290 250 260
K. T'ganu 90 90 300 310 320 150 290 250 260
Kuching 90 90 280 290 300 130 260 240 250
Kuantan 90 90 300 310 320 150 290 250 260
Kota Bharu 90 90 300 310 320 150 290 250 260
Georgetown 90 90 300 310 320 150 290 250 260
Ipoh* 90 90 300 310 320 150 290 250 260
Seremban* 90 90 300 310 320 150 290 250 260
Melaka* 90 90 300 310 320 150 290 250 260
*Preliminary
7.5 Development of Personal Care Baskets
The underlying premise for construction of a personal care basket is that they are essential for
good daily hygiene and that different parts of the body require different considerations with
regard to hygiene. Therefore, we make a distinction between the following:
● Hand hygiene
● Oral hygiene
● Body hygiene
● Intimate hygiene for women
● Shaving
● Hair care
● Skin care
● Haircuts / basic personal grooming
● Basic bathroom equipment
7.5.1 Pricing Criteria for Personal Care Baskets
For the development of this basket, people are assumed to be generally in good health and
have no particular allergy or disability. The baskets only cover costs directly related to personal
care. For products and brands and the choice of shops, the basket takes into consideration
the price, quality, variety and number of stores for easy accessibility. The shops chosen are
popular ones available such as Watsons, Guardian Pharmacy, Caring Pharmacy, Giant and
Tesco. The product choices are taken from the top sellers / leading popular brands. Again, the
2425th percentile price applies, however wherever the number of products or brands are limited,
the average prices are used.
Although there are slight variations in the focus group discussions between men and women
in terms of personal care needs, participants agreed that the amount of monthly expenses to
be allocated for personal care are as follows (Table 7.5):
Table 7.5: Estimated Monthly Expenses: Personal Care
Household Category
Single Single Married Married Married Senior Senior Single Single
(Public (Car (w/o (1 (2 Single Couple Parent Parent (2
City /Region Transport Owner) Children) Child) Children) (1 Children)
User) Child)
Klang Valley 70 70 100 120 140 60 90 90 110
Alor Setar 70 70 100 120 140 60 90 90 110
K. Kinabalu 70 70 100 120 140 60 90 90 110
Johor Bahru 70 70 100 120 140 60 90 90 110
K. T'ganu 70 70 100 120 140 60 90 90 110
Kuching 70 70 100 120 140 60 90 90 110
Kuantan 70 70 100 120 140 60 90 90 110
Kota Bharu 70 70 100 120 140 60 90 90 110
Georgetown 70 70 100 120 140 60 90 90 110
Ipoh* 70 70 100 120 140 60 90 90 110
Seremban* 70 70 100 120 140 60 90 90 110
Melaka* 70 70 100 120 140 60 90 90 110
*Preliminary
7.6 Development of Healthcare Baskets
Although the general premise is that healthcare is universal, it is not realistic to expect people
to visit government hospitals every time they contract a common illness such as the common
cold, influenza, sore throat and toothache. Therefore, the recommended medical care (adults
and children) includes a limited number of private general practitioners (GP) and dentist
consultations a year.
Healthcare baskets also take into consideration contraception for women and men as well.
Besides it being important for couples to plan their family size, contraception also helps to
reduce the risks of pregnancy related morbidities and unplanned pregnancies; thus, promoting
physical, mental and emotional wellbeing for mothers and fathers. The distinction between the
functions that the baskets should fulfill are:
● Care for common illnesses and minor injuries
● Oral / dental care
● Male and female contraception
● A basic family medical chest
257.6.1 Pricing Criteria for Healthcare Baskets
Household members are assumed to generally be in good health and not suffering from
chronic illnesses or severe allergies. They are also assumed to be well-informed about how to
use health care safely and effectively.
The indicative prices for private medical consultations with GPs are taken from Malaysian
Medical Association Fee Guideline (MMA), 2017; as well as from price checks with several GP
clinics for each city, via telephone calls and verification through focus group discussions.
The calculation of care and budget estimations for common illnesses and minor injuries are
for an average of three visits per annum for each individual / family member. As for dental
examinations / treatment, each household member is assumed to make one visit per year. In
addition, the contents for basic family medical chests include aspirin / paracetamol for fever,
antiseptic creams for small cuts and wounds along with a basic first aid-kit which can be
purchased from local pharmacies.
On a different note, the costs for contraception (male and female), include the costs of
Implanon (for women) and 36 condoms per year (for men and women). The costs for
contraception (for women) were taken from the official website of the Family Planning &
Fertility Treatment division of the Ministry of Women, Family & Community Development,
Malaysia.
During the focus group discussions, participants agreed that since expenses on healthcare is
not necessarily a regular occurrence, the amount of expected expenses to be allocated over
a monthly average are as follows (Table 7.6):
Table 7.6: Estimated Monthly Expenses: Healthcare
Household Category
Single Single Married Married Married Senior Senior Single Single
(Public (Car (w/o (1 (2 Single Couple Parent Parent (2
City /Region Transport Owner) Children) Child) Children) (1 Children)
User) Child)
Klang Valley 30 30 70 100 120 70 140 60 80
Alor Setar 20 20 40 60 70 50 100 40 50
K. Kinabalu 20 20 40 60 80 60 120 40 60
Johor Bahru 30 30 60 90 110 60 130 60 80
K. T'ganu 20 20 40 60 80 60 120 40 60
Kuching 20 20 40 60 80 60 120 40 60
Kuantan 20 20 40 60 80 60 120 40 60
Kota Bharu 20 20 40 60 80 60 120 40 60
Georgetown 30 30 60 90 110 60 130 60 80
Ipoh* 30 30 60 80 100 50 110 50 70
Seremban* 30 30 60 90 110 50 110 60 80
Melaka* 30 30 60 80 100 50 110 50 70
*Preliminary
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