Median monthly household income reached RM7,017 in 2024, rising at an annual rate of 5.1 per cent from 2022, while the labour force participation rate increased to 70.6 per cent from 69.3 per cent in 2022 and 68.7 per cent in 2019.

The Malaysia Happiness Index also rose to 7.60 in 2024 from 6.48 in 2021, said KRi in its “From Income to Wellbeing: The State of Households 2026” report today.

The Malaysian Wellbeing Index showed that economic and social wellbeing had generally improved since 2000.

However, the gains remain uneven geographically, with economic activity and higher-paying jobs concentrated in urban centres, particularly Selangor and Kuala Lumpur, according to KRI.

In 2024, median monthly wages stood at RM2,851 in urban areas, against RM1,698 in rural areas. Rural median household income was just 56.4 per cent of the urban level.

Access to basic services has improved considerably. In 2024, 97.8 per cent of households were within 5km of a public health facility, while 98.7 per cent were within 5km of a primary school and 95.9 per cent within 5km of a secondary school.

Nearly all households also had access to treated piped water, electricity and telecommunications.

KRI cautioned that higher incomes and access to infrastructure alone do not guarantee better wellbeing. Age, gender and employment conditions also matter.

Older households tend to have lower incomes and greater health risks, while women continue to face lower labour force participation and a persistent wage gap.

Informal workers, particularly in rural areas, also face greater job insecurity and weaker access to employment-related protections.

The report further warned that Malaysia’s dependence on a limited number of countries for food imports exposes households to potential supply disruptions and price shocks.

Such increases would weigh more heavily on lower-income households, which spend a larger share of their budgets on food.