The inaugural State of Households report relied heavily on publicly available data sources for household well-being, especially the 2012 Household Income and Basic Amenities Survey (henceforth referred to as the Household Income Survey, HIS) and the 2010 Household Expenditure Survey (HES) published by the Malaysian Department of Statistics (DOS). With the publication of the reports for the 2014 HIS and the 2014 HES in June and November 2015, respectively, we can now observe the changes in household well-being—as measured by household income, expenditure, as well as issues surrounding income and wealth inequalities—that have occurred between 2012 and 2014.In the State of Households II therefore, we examine:
The state of households
Building on the understanding that households are the foundation for exploring the issues Malaysia faces, we continue to look at:
- Developments in household incomes and basic amenities, particularly between 2012 and 2014;
- The sources of household incomes, with an explanation on imputed rent and how it affects a household’s ‘balance sheet’;
- Disparities in household incomes and wealth;
- Household spending, particularly on whether households can afford sufficiently nutritious food; and
- Household savings and debt.
The Malaysian workforce
Wages and salaries are by far the most significant source of household incomes, and so this report sets out:
- The composition of Malaysia’s salaried workers and the wage structure; and
- Labour force participation, focusing on women in the workforce.
Population ageing
While household incomes have shown improvements between 2012 and 2014, there may be challenges in the long run. One development that should be scrutinised is population ageing. This report therefore examines:
- The factors driving population ageing in Malaysia and its potential implications; and
- Options for policy responses.
These are by no means the only pressing issues for Malaysia. What the State of Households series aims to do is to draw attention to those directly affecting household well-being, while also indicating areas in which KRI will conduct more in-depth research. For instance, the issue of housing affordability highlighted in the first State of Households was expanded in the Making Housing Affordable report, which has since contributed towards extensive policy discussions on creating a more affordable housing market for Malaysians. Our work on trade and investment was further developed in the two Why Trade Matters reports aimed at broadening the understanding of the relationship between trade policies and wider issues such as labour, food, and healthcare services.
