DOSM releases first cost of living report, along with measurement of how much Malaysians need for ‘decent living’

BUTTERWORTH, Nov 2 – The Department of Statistics Malaysia (DOSM) has today published its first Cost of Living Indicators report for 2023, revealing crucial data on the basic expenditure required for a decent standard of living.

The report included the Cost of Living Index, and a new Basic Expenditure of Decent Living (PAKW) — which is analysed based on demographic details which include household characteristics, household size as well as location.

“PAKW is developed by DOSM to provide value cost for decent living,” said its chief statistician Datuk Seri Mohd Uzir Mahidin in a statement here.

“The development of PAKW began in 2018, considering household spending patterns based on the Household Income and Expenditure Survey.”

PAKW represents the monthly spending needed to meet basic needs, wants, and social participation.

The data showed that the cost of living varied significantly based on location and demographic details such as age, gender, and household size.

The PAKW framework factored in essential food expenditure, aligned with the Ministry of Health’s Recommended Nutrient Intake standards.

A new tool, the MyPAKW calculator, was launched to help the public estimate their basic living expenses based on local demographics. Users can access MyPAKW through mobile apps available on Google and Apple stores, and a dedicated website.

“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 and Decent Living Standards,” Mohd Uzir noted.

DOSM’s OpenDOSM NextGen platform was also introduced for data analysis and visualisation, accessible online for public use.

The report’s release coincided with Malaysia’s National Statistics Day on October 20, themed “Statistics is the Essence of Life,” marking DOSM’s 75th anniversary.