Household Financial Strain in Malaysia: Investigating the Drivers of Elevated Cost of Living
Keywords:
Tax Rate, Import Rate, Income Inequality, Lending Interest Rate, Cost of Living, Malaysia.
Abstract
Rising living costs in Malaysia impose significant financial burdens on households and challenge economic policymaking. This study identifies and quantifies the influence of six macroeconomic variables—Population Growth Rate, Tax Rate, Import Rate, Export Rate, Income Inequality, and Lending Interest Rate—from 1993 to 2023 on the country’s cost of living. Drawing on data from the Department of Statistics Malaysia (DOSM) and the World Bank, we apply descriptive statistics, correlation analysis, and multiple regression methods to uncover long?term relationships. Our findings indicate that population growth and income inequality are positively associated with increased living costs, while fluctuations in import/export rates and adjustments in tax and lending interest rates exert varying but significant effects. These results offer robust empirical evidence of complex interdependencies, underscoring the need for targeted policy strategies—such as equitably structured taxation, inclusive growth policies, trade balance stabilization, and prudent monetary regulation—to alleviate living cost pressures. By illuminating the macroeconomic drivers of living cost dynamics in Malaysia, this study provides actionable insights for policymakers to enhance household welfare.
Downloads
Download data is not yet available.
References
Anthony, L., & Saracoglu, R. (1983). The importance of interest rates in developing economies: and how they affect economic performance. Finance & Development, 20(2).
Ariff, M., & Yanti Abubakar, S. (1999). The Malaysian financial crisis: Economic impact and recovery prospects.
Athukorala, P. C., & Menon, J. (1997). Export-led industrialization, employment and equity: the Malaysian case. Agenda: A Journal of Policy Analysis and Reform, 63-76.
Atkin, D. (2024). Trade and price-index inequality. Oxford Open Economics, 3(Supplement_1), i1069-i1075.
Azmi, N. A., Fitriana, A. R. D., Rohsede, N. H. A., Ramden, N. A., & Puteh, F. (2023). Tackling High Cost of Living in Malaysia: A Strategic Analysis. Journal of Administrative Science, 20(2), 179-206.
Bank Negara Malaysia. (2022). The exchange rate and the Malaysian economy 2022. https://www.bnm.gov.my/
Bolhuis, M., Koosakul, J., & Shenai, N. (2024). Fiscal R-star: Fiscal-monetary tensions and implications for policy (IMF Working Paper No. WP/24/22). International Monetary Fund. https://www.imf.org/en/Publications/WP/Issues/2024/01/26/Fiscal-R-Star-Fiscal-Monetary-Tensions-and-Implications-for-Policy-539871
Carroll, D. R., & Chen, A. (2016). Income inequality matters, but mobility is just as important. Economic Commentary, (2016-06).
Chugan, P. K., & Singh, S. (2014). Taxonomy for Measurement of Firm-level Export Performance. Universal Journal of Industrial and Business Management, 2(8), 193.
Crawford, J. (2024). A Threshold Test for Fed Activism. William & Mary Business Law Review, forthcoming.
Das, L. (2024). Tax Revenue and Economic Performance in Malaysia: A Time Series Analysis. Journal of Business and Economic Options, 7(2), 33-40.
Department of Statistics Malaysia. Household Expenditure Survey Report, Malaysia, 2022. Department of Statistics Malaysia, 2023. https://www.dosm.gov.my/
Emery, J. H., & Guo, X. (2020). Using an Engel Curve approach to infer cost of living experienced by Canadian households. Canadian Public Policy, 46(3), 397-413.
Fong, V. L., & Mohs, J. N. (2020). Exploring the Impact of Tariffs on Foreign Direct Investment and Economic Prosperity. International Journal of Accounting and Taxation, 8(2).
Gazali, N., Halim, N. A., Abdullah, M. A. A., Ahmad, W. M. A. W., Mamat, M., Abdullah, Z., & Mokhtar, K. (2018). The Alternative Profit on Shariah-Compliant by using Compounding Theory. International Journal of Engineering & Technology, 7, 39.
Ghani, M. S. A. (2024). Protes kenaikan cukai semakin memuncak. Sinar Harian. https://www.sinarharian.com.my/ampArticle/671159
Ghunaimi, H. A., Almaqtari, F. A., Wesonga, R., & Elmashtawy, A. (2025). The Rise of FinTech and the Journey Toward a Cashless Society: Investigating the Use of Mobile Payments by SMEs in Oman in the Context of Vision 2040. Administrative Sciences, 15(5), 178.
Gillingham, R. & Greenlees, J.S. (1987). The impact of direct taxes on the cost of living. Journal of Political Economy, 95(4): 775-796.
Gillingham, R., & Greenlees, J. S. (1990). Indexing the Federal Tax System: a cost-of-living approach. Journal of Business & Economic Statistics, 8(4), 465-473.
Goh, S. K., Wong, K. N., Ayupp, K., & Lai, Y. W. (2023). Income inequality, income growth and government redistribution in Malaysia: What do we know in the long run? Malaysian Journal of Economic Studies, 60(1), 69-87.
Guyatt, G., Akl, E. A., Crowther, M., Gutterman, D. D., & Schuünemann, H. J. (2012). Executive Summary. CHEST Journal, 141(2).
Harian, S. (2023). Bertahan dengan kos sara hidup semakin meningkat. Sinar Harian. https://www.sinarharian.com.my/article/282740/suara-sinar/lidahpengarang/bertahan-dengan-kos-sara-hidup-semakin-meningkat
Hassan, M. S., Mahmood, H., Tahir, M. N., Alkhateeb, T. T. Y., & Wajid, A. (2021). Governance: A Source to Increase Tax Revenue in Pakistan. Complexity, 2021(1).
Hossain, A. A. (2017). Monetary Policy for Maintaining Low, Stable Inflation in Malaysia. The Journal of Developing Areas, 51(2), 381.
Houle, C., Ruck, D. J., Bentley, R. A., & Gavrilets, S. (2022). Inequality between identity groups and social unrest. Journal of The Royal Society Interface, 19(188).
Ibrahim, S. N. S., Omar, N., & Arshad, Y. (2023). External and Internal Determinants of Islamic Bank’s Financial Performance in Malaysia. International Journal of Academic Research in Accounting Finance and Management Sciences, 13(2).
Iram, H., Bashir, U., Gazali, S., & Idrees, H. (2023). Catalyzing the impact of high cost of living on demand and supply of textile industry a prospective of emerging economy. CARC Research in Social Sciences, 2(3).
Ismail, R. (2000). Educational and Income Inequality in Malaysia. Humanomics, 16(2), 19.
Ismail, N. A., Daud, L., Mohd, S., Samat, N., Ridzuan, A. R., & (2022). Analysis of cost of living in Malaysia: States and urbanization comparison. International Journal of Special Education, 37.
Ismail, N. A., Daud, L., Mohd, S., Samat, N., & Ridzuan, A. R. (2023). Living Style and Cost of Living: A Cross-Section Analysis of B40 Households in Malaysia. Malaysian Journal of Consumer and Family Economics.
Johari, M. N., & Said, S. Y. (2021). A comparative analysis between traditional Malay house and terraced house in energy conservation. IOP Conference Series Earth and Environmental Science, 685(1), 12012.
Kaya, M. G., Y?ld?z, Y., & Kaya, P. H. (2022). Interaction of Indirect Taxes and Inflation: The Case of Turkey
Keat, P.G. & Young, P.K.Y. 2009. Managerial Economics: Economic Tools for Today’s Decision Makers. 6th edition. Singapore: Pearson
Kelly, P., Ruch, W., Ruch, F., & Matlhatsi, R. (2018). Inflation in a time of inequality: Assessing the relevance of cost-of-living measures for the poor. In Paper prepared for the Meeting of the Group of Experts on Consumer Price Indices (pp. 7-9).
Khalafalla, K. Y., & Webb, A. J. (2001). Export–led growth and structural change: Evidence from Malaysia. Applied Economics, 33(13), 1703-1715.
Khan, S. J. M., Abdullah, N., Mat, S. H. C., Bakar, A., Ali, J., & Abdullah, H. (2018). The Effectiveness of 1Malaysia People’s Aid Program to the B40 Group in the Rising Cost of Living: An Exploratory Case Study in Rural District of Kedah. The Journal of Social Sciences Research, 958.
Khomariyah, R. N., Setyowati, E., & Utomo, Y. P. (2022). Analysis of the Effect of Inflation, Interest Rate, Exchange Rate, and National Income on Financial Deepening in Indonesia from 2000 to 2020. Advances in Economics, Business and Management Research/Advances in Economics, Business and Management Research.
Kohn, D. L. (2006). The effects of globalization on inflation and their implications for monetary policy. Conference Series; [Proceedings], 51. http://econpapers.repec.org/RePEc:fip:fedbcp:y:2006:n:51:x:6
Kovárník, J., Hamplová, E., Jedli?ka, P., & Hájek, L. (2015). The Causalities of the Tax Incidence and the Modeling of Tax Processes. Procedia Economics and Finance, 23, 1253.
Kushairi, A., Ong-Abdullah, M., Nambiappan, B., Hishamuddin, E., Bidin, M. N. I. Z., Ghazali, R., ... & Parveez, G. K. A. (2019). Oil palm economic performance in Malaysia and R&D progress in 2018. Journal of Oil Palm Research, 31(2), 165-194.
Latif, N. S. A., Majeed, K. M. R., Rozzani, N., & Saleh, S. K. (2020). Factors Affecting Housing Prices in Malaysia: A Literature Review [Review of Factors Affecting Housing Prices in Malaysia: A Literature Review]. International Journal of Asian Social Science, 10(1), 63.
Latimaha, R., Ismal, N. A., & Bahari, Z. (2020). Cost of living and standard of living nexus: the determinants of cost of living. Jurnal Ekonomi Malaysia, 54(3), 1-14.
L’Huillier, J.-P., & DeLuca, M. J. (2023). The Long-Run Costs of Higher Inflation. Economic Commentary (Federal Reserve Bank of Cleveland).
Liu, J., & Ong, H. Y. (2021). Can Malaysia’s National Affordable Housing Policy Guarantee Housing Affordability of Low-Income Households? Sustainability, 13(16), 8841.
Macrotrends. (2025). Malaysia population growth rate 1950–2025. https://www.macrotrends.net/countries /MYS/malaysia/population-growth-rate
Mainal, S. A., Hanipah, F. A. A., Zuhaimi, N. L., & Kamarudin, N. N. S. (2024). The Impact of Taxation on the Cost of Living: A Comprehensive Analysis. Information Management and Business Review, 16, 628.
Malaysia central bank keeps key rate at 3%, as expected. (2025). https://www.reuters.com/markets /asia/malaysia-central-bank-keeps-key-rate-3-expected-2025-05-08/
Malaysia Central Bank key rates 2023. (2023). https://countryeconomy.com/key-rates/malaysia
Malaysia Consumer price index, 1960-2023. (2024). https://knoema.com/atlas/Malaysia/topics/Economy/ Inflation-and-Prices/Consumer-price-index
Malaysia Consumer Price Index (CPI). (2025). https://tradingeconomics.com/malaysia/consumer-price-index-cpi
Malaysia Interest Rate. (n.d.). Retrieved June 14, 2025, from https://tradingeconomics.com/malaysia /interest-rate
Man, N. B. C., & Salihin, A. F. B. (2018). Analyzing Land Use Pattern Changes in Mukim Pengerang, Johor, Malaysia. Geoplanning Journal of Geomatics and Planning, 5(2), 229.
Mandeij, D., Rumate, V. A., & Rompas, W. F. I. (2019). The Influence of Exchange Rate, International Interest Rate and Inflation Rate on Lending and Deposit Rate of Indonesia Banking Sector Through Reference Policy Rate as Intervening Variable. International Journal of Engineering and Advanced Technology, 8, 204.
Mat, S. H. C., Fadzim, W. R., Harun, M., & Jamil, N. (2020). Spending Behavior and Coping Strategies of The Low-Income Group in Kedah, Malay. SHS Web of Conferences, 86, 1035.
Mbutor, O. M. (2014). Inflation in Nigeria: How much is the function of money. Journal of economics and international finance, 6(1), 21-27.
Moretti, E. (2010). Poverty, inequality and cost of living differences. University of Kentucky Center for Poverty Research Discussion Paper Series, 7.
Muarief, F., Herawati, H., Suroso, A., Iswahyuningsih, I., & Wardani, D. R. K. (2024). Analysis of The Relationship Between Labor Market, Currency Exchange Rate Stability, Product Quality and International Trade Competitiveness. Innovative: Journal Of Social Science Research, 4(3), 6504-6512.
Nayanathara, N., Ilangarathna, G. A., Rathnayaka, S. D., & Weerahewa, J. (2023). Estimation of short-run and long-run food import demand elasticities in Sri Lanka: The bound testing approach.
Nurdina, N., Nurkholis, N., Adib, N., & Atmini, S. (2024). Evaluation of the Resilience of Real Estate and Property Stocks to Inflation and Interest Rate Uncertainty: Implementation of Two Asset Pricing Models. Journal of Risk and Financial Management, 17(12), 530.
Odionye, J. C., Ojiaku, E. U., & Uba, C. N. (2023). Impact of interest rate differential, exchange rate changes and political stability on foreign capital inflow in Nigeria: Discrete threshold regression model. Cogent Economics & Finance, 11(1).
Othman, Z. A., Abu, A., Samsiah, N., & Sallim, J. (2020). Household Overspending Model Amongst B40, M40 and T20 using Classification Algorithm. International Journal of Advanced Computer Science and Applications, 11(7).
Overnight policy rate. (2024). https://Overnight_policy_rate
Perloff, J. M. (2018). Microeconomics (8th ed.). Pearson.
Primont, D. F. (2000). On the construction of price indexes. In Microbehavior and macroresults: Proceedings of the Tenth Biennial Conference of the International Institute of Fisheries Economics and Trade (July 10–14, 2000, Corvallis, Oregon).
Rabi, A., & Mansor, N. (2024). Resurrecting Goods and Services Tax (GST).
Rahman, M. F. A., & Ridzuan, A. R. (2020). Factors that Determine House Price Index in Malaysia. International Journal of Academic Research in Accounting Finance and Management Sciences, 10(1).
Rajakaruna, H. (2017). An Investigation of Factors Affecting Exchange Rate Fluctuations in Sri Lanka. Journal of South Asian Studies, 5(2), 101. https://esciencepress.net/journals/index.php/JSAS/article /download/2296/1084
Rangel, G. J., Ng, J. W. J., Murugasu, T., & Poon, W. C. (2017). Measuring Housing Affordability in an Emerging Market: The Lifetime Income Approach. SSRN Electronic Journal.
Resosudarmo, B. P., Rezki, J. F., & Effendi, Y. (2023). Prospects of Energy Transition in Indonesia. Bulletin of Indonesian Economic Studies, 59(2), 149.
Ruslan, S. M. M., & Mokhtar, K. (2020). Structural break and consumer prices: the case of Malaysia. Cogent Business & Management, 7(1), 1767328.
Samad, D., Zainon, N., Rahim, F. A. M., Lou, E., & Abd-Karim, S. B. (2016). Malaysian Affordability Housing Policies Revisited. MATEC Web of Conferences, 66, 10.
Sari, W. N. I., Setyowati, E., Putri, S. M., & Faridatussalam, S. R. (2022). Analysis of the Effect of Interest Rates, Exchange Rate Inflation and Foreign Investment (PMA) on Economic Growth in Indonesia in 1986-2020. Advances in Economics, Business and Management Research/Advances in Economics, Business and Management Research.
Sengupta, S., Chakraborty, T., & Singh, S. K. (2024). Forecasting CPI inflation under economic policy and geopolitical uncertainties. International Journal of Forecasting.
Seow, R. (2022). Direct Selling a Controversial Business Model: Recent Development and Future Research Agenda. Journal of Technology Management and Business, 9(2), 99- 115.
Shah, M.H., Ullah, S., Ullah, K. & Amin, M.T. 2020. Empirical analysis of household food consumption pattern
in Fata region of Pakistan. Asian Journal of Economics, Business and Accounting 141: 1–8.
Singh, S. (2016). Economic Changes, Inflation Dynamics and Policy Responses: The Malaysian Experience. SSRN Electronic Journal. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2871786
Sulaiman, N. F. C., Sanusi, N. A., & Muhamad, S. (2019). Survey dataset of Malaysian perception on rising cost of living. Data in Brief, 28, 104910.
Sulaiman, Y., Shamsudin, A. S., Kheng, Y. K., & Othman, A. R. (2020). Consumption Pattern Model for Malaysian Consumers. Wseas Transactions on Environment and Development, 16, 341.
Sulaiman, N. F. C., Rashid, N. K. A., Ridzuan, A. R., Samsudin, H., Saputra, J., Abidin, N. Z., & Hussain, N. E. (2024). Analyzing the household income and consumption expenditure: Reality of rising cost of living in Malaysia. KnE Social Sciences, 2024, 539–551.
Teall, J. L. (1999). Financial Market Analytics. https://www.amazon.com/Financial-Market-Analytics-John-Teall/dp/1567201989
Triplett, J. E. (2001). Should the cost?of?living index provide the conceptual framework for a consumer price index? The Economic Journal, 111(472), 311-334.
Wahab, M. A. A., Shahiri, H. I., Mansur, M., & Zaidi, M. A. S. (2018). Kos Sara Hidup Tinggi di Malaysia: Pertumbuhan Pendapatan Isi Rumah yang Perlahan atau Taraf Hidup yang Meningkat? Jurnal Ekonomi Malaysia, 52(2).
Wexler, S., Shaffer, J., & Cotgreave, A. (2017). The big book of dashboards: visualizing your data using real-world business scenarios. John Wiley & Sons.
Yanita, M., Napitupulu, D., & Rahmah, K. (2020). Analysis of Factors Affecting the Competitiveness of Indonesian Crude Palm Oil (CPO) Export in the Global Market. Indonesian Journal of Agricultural Research, 2(3), 97.
Yee, L. S., WaiMun, H., Zhengyi, T., Ying, L. J., & Xin, K. K. (2016). Determinants of export: Empirical study in Malaysia. Journal of International Business and Economics, 4(1), 61-75.
Zainuddin, M. T., Nazri, M. A., Dali, N. R. S. M., & Ahmad, N. (2024). Does the Islamic Marketing Mix Model Matter in Coping with the Rising Cost of Living in Malaysia During the Crisis? Global Business and Management Research, 16(2s), 909-929.
Ariff, M., & Yanti Abubakar, S. (1999). The Malaysian financial crisis: Economic impact and recovery prospects.
Athukorala, P. C., & Menon, J. (1997). Export-led industrialization, employment and equity: the Malaysian case. Agenda: A Journal of Policy Analysis and Reform, 63-76.
Atkin, D. (2024). Trade and price-index inequality. Oxford Open Economics, 3(Supplement_1), i1069-i1075.
Azmi, N. A., Fitriana, A. R. D., Rohsede, N. H. A., Ramden, N. A., & Puteh, F. (2023). Tackling High Cost of Living in Malaysia: A Strategic Analysis. Journal of Administrative Science, 20(2), 179-206.
Bank Negara Malaysia. (2022). The exchange rate and the Malaysian economy 2022. https://www.bnm.gov.my/
Bolhuis, M., Koosakul, J., & Shenai, N. (2024). Fiscal R-star: Fiscal-monetary tensions and implications for policy (IMF Working Paper No. WP/24/22). International Monetary Fund. https://www.imf.org/en/Publications/WP/Issues/2024/01/26/Fiscal-R-Star-Fiscal-Monetary-Tensions-and-Implications-for-Policy-539871
Carroll, D. R., & Chen, A. (2016). Income inequality matters, but mobility is just as important. Economic Commentary, (2016-06).
Chugan, P. K., & Singh, S. (2014). Taxonomy for Measurement of Firm-level Export Performance. Universal Journal of Industrial and Business Management, 2(8), 193.
Crawford, J. (2024). A Threshold Test for Fed Activism. William & Mary Business Law Review, forthcoming.
Das, L. (2024). Tax Revenue and Economic Performance in Malaysia: A Time Series Analysis. Journal of Business and Economic Options, 7(2), 33-40.
Department of Statistics Malaysia. Household Expenditure Survey Report, Malaysia, 2022. Department of Statistics Malaysia, 2023. https://www.dosm.gov.my/
Emery, J. H., & Guo, X. (2020). Using an Engel Curve approach to infer cost of living experienced by Canadian households. Canadian Public Policy, 46(3), 397-413.
Fong, V. L., & Mohs, J. N. (2020). Exploring the Impact of Tariffs on Foreign Direct Investment and Economic Prosperity. International Journal of Accounting and Taxation, 8(2).
Gazali, N., Halim, N. A., Abdullah, M. A. A., Ahmad, W. M. A. W., Mamat, M., Abdullah, Z., & Mokhtar, K. (2018). The Alternative Profit on Shariah-Compliant by using Compounding Theory. International Journal of Engineering & Technology, 7, 39.
Ghani, M. S. A. (2024). Protes kenaikan cukai semakin memuncak. Sinar Harian. https://www.sinarharian.com.my/ampArticle/671159
Ghunaimi, H. A., Almaqtari, F. A., Wesonga, R., & Elmashtawy, A. (2025). The Rise of FinTech and the Journey Toward a Cashless Society: Investigating the Use of Mobile Payments by SMEs in Oman in the Context of Vision 2040. Administrative Sciences, 15(5), 178.
Gillingham, R. & Greenlees, J.S. (1987). The impact of direct taxes on the cost of living. Journal of Political Economy, 95(4): 775-796.
Gillingham, R., & Greenlees, J. S. (1990). Indexing the Federal Tax System: a cost-of-living approach. Journal of Business & Economic Statistics, 8(4), 465-473.
Goh, S. K., Wong, K. N., Ayupp, K., & Lai, Y. W. (2023). Income inequality, income growth and government redistribution in Malaysia: What do we know in the long run? Malaysian Journal of Economic Studies, 60(1), 69-87.
Guyatt, G., Akl, E. A., Crowther, M., Gutterman, D. D., & Schuünemann, H. J. (2012). Executive Summary. CHEST Journal, 141(2).
Harian, S. (2023). Bertahan dengan kos sara hidup semakin meningkat. Sinar Harian. https://www.sinarharian.com.my/article/282740/suara-sinar/lidahpengarang/bertahan-dengan-kos-sara-hidup-semakin-meningkat
Hassan, M. S., Mahmood, H., Tahir, M. N., Alkhateeb, T. T. Y., & Wajid, A. (2021). Governance: A Source to Increase Tax Revenue in Pakistan. Complexity, 2021(1).
Hossain, A. A. (2017). Monetary Policy for Maintaining Low, Stable Inflation in Malaysia. The Journal of Developing Areas, 51(2), 381.
Houle, C., Ruck, D. J., Bentley, R. A., & Gavrilets, S. (2022). Inequality between identity groups and social unrest. Journal of The Royal Society Interface, 19(188).
Ibrahim, S. N. S., Omar, N., & Arshad, Y. (2023). External and Internal Determinants of Islamic Bank’s Financial Performance in Malaysia. International Journal of Academic Research in Accounting Finance and Management Sciences, 13(2).
Iram, H., Bashir, U., Gazali, S., & Idrees, H. (2023). Catalyzing the impact of high cost of living on demand and supply of textile industry a prospective of emerging economy. CARC Research in Social Sciences, 2(3).
Ismail, R. (2000). Educational and Income Inequality in Malaysia. Humanomics, 16(2), 19.
Ismail, N. A., Daud, L., Mohd, S., Samat, N., Ridzuan, A. R., & (2022). Analysis of cost of living in Malaysia: States and urbanization comparison. International Journal of Special Education, 37.
Ismail, N. A., Daud, L., Mohd, S., Samat, N., & Ridzuan, A. R. (2023). Living Style and Cost of Living: A Cross-Section Analysis of B40 Households in Malaysia. Malaysian Journal of Consumer and Family Economics.
Johari, M. N., & Said, S. Y. (2021). A comparative analysis between traditional Malay house and terraced house in energy conservation. IOP Conference Series Earth and Environmental Science, 685(1), 12012.
Kaya, M. G., Y?ld?z, Y., & Kaya, P. H. (2022). Interaction of Indirect Taxes and Inflation: The Case of Turkey
Keat, P.G. & Young, P.K.Y. 2009. Managerial Economics: Economic Tools for Today’s Decision Makers. 6th edition. Singapore: Pearson
Kelly, P., Ruch, W., Ruch, F., & Matlhatsi, R. (2018). Inflation in a time of inequality: Assessing the relevance of cost-of-living measures for the poor. In Paper prepared for the Meeting of the Group of Experts on Consumer Price Indices (pp. 7-9).
Khalafalla, K. Y., & Webb, A. J. (2001). Export–led growth and structural change: Evidence from Malaysia. Applied Economics, 33(13), 1703-1715.
Khan, S. J. M., Abdullah, N., Mat, S. H. C., Bakar, A., Ali, J., & Abdullah, H. (2018). The Effectiveness of 1Malaysia People’s Aid Program to the B40 Group in the Rising Cost of Living: An Exploratory Case Study in Rural District of Kedah. The Journal of Social Sciences Research, 958.
Khomariyah, R. N., Setyowati, E., & Utomo, Y. P. (2022). Analysis of the Effect of Inflation, Interest Rate, Exchange Rate, and National Income on Financial Deepening in Indonesia from 2000 to 2020. Advances in Economics, Business and Management Research/Advances in Economics, Business and Management Research.
Kohn, D. L. (2006). The effects of globalization on inflation and their implications for monetary policy. Conference Series; [Proceedings], 51. http://econpapers.repec.org/RePEc:fip:fedbcp:y:2006:n:51:x:6
Kovárník, J., Hamplová, E., Jedli?ka, P., & Hájek, L. (2015). The Causalities of the Tax Incidence and the Modeling of Tax Processes. Procedia Economics and Finance, 23, 1253.
Kushairi, A., Ong-Abdullah, M., Nambiappan, B., Hishamuddin, E., Bidin, M. N. I. Z., Ghazali, R., ... & Parveez, G. K. A. (2019). Oil palm economic performance in Malaysia and R&D progress in 2018. Journal of Oil Palm Research, 31(2), 165-194.
Latif, N. S. A., Majeed, K. M. R., Rozzani, N., & Saleh, S. K. (2020). Factors Affecting Housing Prices in Malaysia: A Literature Review [Review of Factors Affecting Housing Prices in Malaysia: A Literature Review]. International Journal of Asian Social Science, 10(1), 63.
Latimaha, R., Ismal, N. A., & Bahari, Z. (2020). Cost of living and standard of living nexus: the determinants of cost of living. Jurnal Ekonomi Malaysia, 54(3), 1-14.
L’Huillier, J.-P., & DeLuca, M. J. (2023). The Long-Run Costs of Higher Inflation. Economic Commentary (Federal Reserve Bank of Cleveland).
Liu, J., & Ong, H. Y. (2021). Can Malaysia’s National Affordable Housing Policy Guarantee Housing Affordability of Low-Income Households? Sustainability, 13(16), 8841.
Macrotrends. (2025). Malaysia population growth rate 1950–2025. https://www.macrotrends.net/countries /MYS/malaysia/population-growth-rate
Mainal, S. A., Hanipah, F. A. A., Zuhaimi, N. L., & Kamarudin, N. N. S. (2024). The Impact of Taxation on the Cost of Living: A Comprehensive Analysis. Information Management and Business Review, 16, 628.
Malaysia central bank keeps key rate at 3%, as expected. (2025). https://www.reuters.com/markets /asia/malaysia-central-bank-keeps-key-rate-3-expected-2025-05-08/
Malaysia Central Bank key rates 2023. (2023). https://countryeconomy.com/key-rates/malaysia
Malaysia Consumer price index, 1960-2023. (2024). https://knoema.com/atlas/Malaysia/topics/Economy/ Inflation-and-Prices/Consumer-price-index
Malaysia Consumer Price Index (CPI). (2025). https://tradingeconomics.com/malaysia/consumer-price-index-cpi
Malaysia Interest Rate. (n.d.). Retrieved June 14, 2025, from https://tradingeconomics.com/malaysia /interest-rate
Man, N. B. C., & Salihin, A. F. B. (2018). Analyzing Land Use Pattern Changes in Mukim Pengerang, Johor, Malaysia. Geoplanning Journal of Geomatics and Planning, 5(2), 229.
Mandeij, D., Rumate, V. A., & Rompas, W. F. I. (2019). The Influence of Exchange Rate, International Interest Rate and Inflation Rate on Lending and Deposit Rate of Indonesia Banking Sector Through Reference Policy Rate as Intervening Variable. International Journal of Engineering and Advanced Technology, 8, 204.
Mat, S. H. C., Fadzim, W. R., Harun, M., & Jamil, N. (2020). Spending Behavior and Coping Strategies of The Low-Income Group in Kedah, Malay. SHS Web of Conferences, 86, 1035.
Mbutor, O. M. (2014). Inflation in Nigeria: How much is the function of money. Journal of economics and international finance, 6(1), 21-27.
Moretti, E. (2010). Poverty, inequality and cost of living differences. University of Kentucky Center for Poverty Research Discussion Paper Series, 7.
Muarief, F., Herawati, H., Suroso, A., Iswahyuningsih, I., & Wardani, D. R. K. (2024). Analysis of The Relationship Between Labor Market, Currency Exchange Rate Stability, Product Quality and International Trade Competitiveness. Innovative: Journal Of Social Science Research, 4(3), 6504-6512.
Nayanathara, N., Ilangarathna, G. A., Rathnayaka, S. D., & Weerahewa, J. (2023). Estimation of short-run and long-run food import demand elasticities in Sri Lanka: The bound testing approach.
Nurdina, N., Nurkholis, N., Adib, N., & Atmini, S. (2024). Evaluation of the Resilience of Real Estate and Property Stocks to Inflation and Interest Rate Uncertainty: Implementation of Two Asset Pricing Models. Journal of Risk and Financial Management, 17(12), 530.
Odionye, J. C., Ojiaku, E. U., & Uba, C. N. (2023). Impact of interest rate differential, exchange rate changes and political stability on foreign capital inflow in Nigeria: Discrete threshold regression model. Cogent Economics & Finance, 11(1).
Othman, Z. A., Abu, A., Samsiah, N., & Sallim, J. (2020). Household Overspending Model Amongst B40, M40 and T20 using Classification Algorithm. International Journal of Advanced Computer Science and Applications, 11(7).
Overnight policy rate. (2024). https://Overnight_policy_rate
Perloff, J. M. (2018). Microeconomics (8th ed.). Pearson.
Primont, D. F. (2000). On the construction of price indexes. In Microbehavior and macroresults: Proceedings of the Tenth Biennial Conference of the International Institute of Fisheries Economics and Trade (July 10–14, 2000, Corvallis, Oregon).
Rabi, A., & Mansor, N. (2024). Resurrecting Goods and Services Tax (GST).
Rahman, M. F. A., & Ridzuan, A. R. (2020). Factors that Determine House Price Index in Malaysia. International Journal of Academic Research in Accounting Finance and Management Sciences, 10(1).
Rajakaruna, H. (2017). An Investigation of Factors Affecting Exchange Rate Fluctuations in Sri Lanka. Journal of South Asian Studies, 5(2), 101. https://esciencepress.net/journals/index.php/JSAS/article /download/2296/1084
Rangel, G. J., Ng, J. W. J., Murugasu, T., & Poon, W. C. (2017). Measuring Housing Affordability in an Emerging Market: The Lifetime Income Approach. SSRN Electronic Journal.
Resosudarmo, B. P., Rezki, J. F., & Effendi, Y. (2023). Prospects of Energy Transition in Indonesia. Bulletin of Indonesian Economic Studies, 59(2), 149.
Ruslan, S. M. M., & Mokhtar, K. (2020). Structural break and consumer prices: the case of Malaysia. Cogent Business & Management, 7(1), 1767328.
Samad, D., Zainon, N., Rahim, F. A. M., Lou, E., & Abd-Karim, S. B. (2016). Malaysian Affordability Housing Policies Revisited. MATEC Web of Conferences, 66, 10.
Sari, W. N. I., Setyowati, E., Putri, S. M., & Faridatussalam, S. R. (2022). Analysis of the Effect of Interest Rates, Exchange Rate Inflation and Foreign Investment (PMA) on Economic Growth in Indonesia in 1986-2020. Advances in Economics, Business and Management Research/Advances in Economics, Business and Management Research.
Sengupta, S., Chakraborty, T., & Singh, S. K. (2024). Forecasting CPI inflation under economic policy and geopolitical uncertainties. International Journal of Forecasting.
Seow, R. (2022). Direct Selling a Controversial Business Model: Recent Development and Future Research Agenda. Journal of Technology Management and Business, 9(2), 99- 115.
Shah, M.H., Ullah, S., Ullah, K. & Amin, M.T. 2020. Empirical analysis of household food consumption pattern
in Fata region of Pakistan. Asian Journal of Economics, Business and Accounting 141: 1–8.
Singh, S. (2016). Economic Changes, Inflation Dynamics and Policy Responses: The Malaysian Experience. SSRN Electronic Journal. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2871786
Sulaiman, N. F. C., Sanusi, N. A., & Muhamad, S. (2019). Survey dataset of Malaysian perception on rising cost of living. Data in Brief, 28, 104910.
Sulaiman, Y., Shamsudin, A. S., Kheng, Y. K., & Othman, A. R. (2020). Consumption Pattern Model for Malaysian Consumers. Wseas Transactions on Environment and Development, 16, 341.
Sulaiman, N. F. C., Rashid, N. K. A., Ridzuan, A. R., Samsudin, H., Saputra, J., Abidin, N. Z., & Hussain, N. E. (2024). Analyzing the household income and consumption expenditure: Reality of rising cost of living in Malaysia. KnE Social Sciences, 2024, 539–551.
Teall, J. L. (1999). Financial Market Analytics. https://www.amazon.com/Financial-Market-Analytics-John-Teall/dp/1567201989
Triplett, J. E. (2001). Should the cost?of?living index provide the conceptual framework for a consumer price index? The Economic Journal, 111(472), 311-334.
Wahab, M. A. A., Shahiri, H. I., Mansur, M., & Zaidi, M. A. S. (2018). Kos Sara Hidup Tinggi di Malaysia: Pertumbuhan Pendapatan Isi Rumah yang Perlahan atau Taraf Hidup yang Meningkat? Jurnal Ekonomi Malaysia, 52(2).
Wexler, S., Shaffer, J., & Cotgreave, A. (2017). The big book of dashboards: visualizing your data using real-world business scenarios. John Wiley & Sons.
Yanita, M., Napitupulu, D., & Rahmah, K. (2020). Analysis of Factors Affecting the Competitiveness of Indonesian Crude Palm Oil (CPO) Export in the Global Market. Indonesian Journal of Agricultural Research, 2(3), 97.
Yee, L. S., WaiMun, H., Zhengyi, T., Ying, L. J., & Xin, K. K. (2016). Determinants of export: Empirical study in Malaysia. Journal of International Business and Economics, 4(1), 61-75.
Zainuddin, M. T., Nazri, M. A., Dali, N. R. S. M., & Ahmad, N. (2024). Does the Islamic Marketing Mix Model Matter in Coping with the Rising Cost of Living in Malaysia During the Crisis? Global Business and Management Research, 16(2s), 909-929.
Published
2025-08-11
How to Cite
Mainal, S. A., Idzham Shahairul, M. A., ‘Afifah Karim, N. I., & Nordin, N. (2025). Household Financial Strain in Malaysia: Investigating the Drivers of Elevated Cost of Living. Information Management and Business Review, 17(2(I)S), 360-382. https://doi.org/10.22610/imbr.v17i2(I)S.4613
Issue
Section
Research Paper
Copyright (c) 2025 Siti Aminah Mainal, Muhammad Afiq Idzham Shahairul, Nur Izzah ‘Afifah Karim, Nurizzah Nordin
This work is licensed under a Creative Commons Attribution 4.0 International License.
Author (s) should affirm that the material has not been published previously. It has not been submitted and it is not under consideration by any other journal. At the same time author (s) need to execute a publication permission agreement to assume the responsibility of the submitted content and any omissions and errors therein. After submission of revised paper in the light of suggestions of the reviewers, the editorial team edits and formats manuscripts to bring uniformity and standardization in published material.
This work will be licensed under Creative Commons Attribution 4.0 International (CC BY 4.0) and under condition of the license, users are free to read, copy, remix, transform, redistribute, download, print, search or link to the full texts of articles and even build upon their work as long as they credit the author for the original work. Moreover, as per journal policy author (s) hold and retain copyrights without any restrictions.
