Analysis of Income and Expenditure of Households in Peninsular Malaysia

Income and expenditure issues in Malaysia had been recently discussed by many researchers as these are the basis of every sustainable economy. Malaysians should understand their spending behaviour based on their revenue. The study is conducted to demonstrate the relationship between household income and expenditure as well as demographic characteristics in northern region, central region, southern region and east coast of Peninsular Malaysia by using appropriate statistical techniques. The dataset being employed was extracted from Household Expenditure Survey (HES) 2019 by the Department of Statistics Malaysia (DOSM). The study is focused on the households who lived in Kuala Lumpur, Selangor, Johor, Penang and Kelantan to represent each region in Peninsular Malaysia. The data analysis was conducted using Chi-square test, bivariate analysis, simple linear regression and multiple linear regression. The results showed that household expenditure is directly proportional to household income, and household revenue was significantly influenced by all demographic variables while household spending was affected by particular characteristics, such as gender, ethnicity, educational level and activity status. Kelantan households revealed the lowest average household income whereas Kuala Lumpur families possessed the highest household revenue. The findings of household income and expenditure distribution based on activity status and regions can contribute to all Malaysians especially fresh graduates, individuals who are going to settle down, NGOs and retirees. Future research can be conducted by utilising comprehensive data to study the distribution of household revenue and spending at the district areas in each state, along with data visualisation techniques.