KUALA LUMPUR: The mean monthly basic expenditure of decent living (PAKW) for households in Malaysia was registered at RM4,729 for 2023, according to the Department of Statistics Malaysia (DOSM).
PAKW is a newly-created cost of living index calculated based on 419 items covering food and clothing to utilities and transportation.
"PAKW is developed by DOSM to provide value for decent living," chief statistician Datuk Seri Dr Mohd Uzir Mahidin said in a statement.
The development of PAKW began in 2018, considering household spending patterns based on the household income and expenditure survey," he added.
According to the data by DOSM, a comparison by area recorded that PAKW in urban areas was higher than in rural areas, with values of RM5,040 and RM3,631, respectively.
"The factors that influenced PAKW values were household size, age, gender, and area. Households with more members require higher expenditures to meet both their food and non-food needs," it said.
Meanwhile, the data stated that Selangor recorded the highest PAKW value at RM5,854, followed by Kuala Lumpur (RM5,468), Labuan (RM5,376), Melaka (RM5,291), and Putrajaya (RM5,249).
They all reported PAKW values exceeding the national mean of RM4,729.
In contrast, DOSM said the lowest PAKW values were recorded in Perak (RM3,723), followed by Kedah (RM3,787), Perlis (RM3,818), Pahang (RM3,949), and Negri Sembilan (RM3,987).
Petaling district registered the highest PAKW value in Malaysia at RM6,660. Next was Klang (RM6,244), Hulu Langat (RM5,810), Kuala Terengganu (RM5,750), and Lahad Datu (RM5,608).
The lowest PAKW values were recorded in Bukit Mabong (RM1,945), followed by Julau (RM2,347), Sri Aman (RM2,486), Belaga (RM2,493), and Lubok Antu (RM2,516).
The development of PAKW is based on the principle of above minimum needs, taking into account three aspects of decent living: needs, wants, and social participation, based on the income/spending patterns of households.
This approach also considers the cost of eating outside and the minimum-diversified concept for food expenditure choices.
"In addition to Malaysia, countries worldwide also assess the cost of decent living, employing various terms such as the Cost of Living Index, Household Living-cost Price Indexes (HLPIs) and Decent Living Standards," Mohd Uzir said.
The PAKW was launched on Nov 2 by Prime Minister Datuk Seri Anwar Ibrahim.