KUALA LUMPUR: Klang Valley residents saw an average of 6.7 per cent increase in the cost of living between 2022 and 2024, according to the Employees Provident Fund's (EPF) Belanjawanku 2024-2025 guide.
The Klang Valley continues to be the most expensive region in Malaysia and saw a notable increase in living expenses for the period compared with Alor Star, the least expensive city in the country.
The guide's review of nine types of households showed that increases ranged from 2.1 per cent to eight per cent during the period.
The households included single public transport user, couples with children and seniors.
According to the EPF Belanjawanku, a single person who owns a car in the Klang Valley saw a 7.7 per cent increase in the cost of living for the period 2024/2025 compared with 2022/2023.
Those in that category now need RM2,800 per month versus RM2,600 previously, mainly due to the rise in car prices and manpower to maintain the vehicle.
The Belanjawanku serves as an expenditure guide outlining the estimated minimum monthly expenses required for Malaysians from various types of households to attain a reasonable and acceptable standard of living.
Since 2019, EPF and the Social Wellbeing Research Centre (SWRC) at Universiti Malaya have developed a guide to estimate the minimum monthly expenses needed for a decent standard of living.
Initially focused on the Klang Valley, the guide now covers 11 other major cities in Malaysia and is updated yearly to reflect current living costs.
"Nearly 55.6 per cent of bankruptcy cases administered by the Department of Insolvency between 2020 and October 2024 involved individuals aged 25 to 44.
"During this period, 16,897 of individuals in this age group out of a total of 30,398 cases were declared bankrupt," said SWRC director Professor Norma Mansor during a briefing on the guide, highlighting the need for personal and family budgeting.
Low financial literacy, rising cost of living and structural wage challenges have been identified as reasons for low financial wellbeing of Malaysians.
According to the guide, a married couple with two children in the Klang Valley saw an eight per cent increase in estimated monthly budget to RM7,440 in 2024/2025 versus RM6,890 in 2022/2023.
"The increase in monthly budget for married couples or single parents with children is due to childcare and food," said Norma.
Data from SWRC showed that couples with two children would need about RM1,210 for childcare in the Klang Valley, while those with a child need RM670.
A senior couple in the Klang Valley will need a household budget of RM3,390, up 5.6 per cent from RM3,210 previously.
A single senior individual now needs RM2,690, compared with RM2,520 in 2022/2023.