Malaysia records RM976.4bn in household income for 2021, with wages and business profits driving 78.4%: DOSM

Most household income flowed back into spending, while savings stayed low. The data also highlights ongoing disparities across income groups, regions, and gender.

Malaysia’s households brought in a total income of RM976.4bn in 2021, according to the Department of Statistics Malaysia (DOSM). The bulk of this came from compensation of employees and profits from unincorporated businesses amounting to RM765.0bn or 78.4% of total household income.

The second-largest contributor to household income in 2021 was distributed profits, which brought in RM83.2bn (8.5%). This was followed by:

• Social benefits and periodical payments: RM66.9bn (6.8%)
• Household financing: RM55.8bn (5.7%)
• Current transfers: RM5.5bn (0.6%)

How Malaysians spent their income

The majority of household income in 2021 was directed toward consumption, with Malaysians spending RM884.5bn (90.6%) on domestic & imported commodities, both locally produced and imported.

The second-largest expenditure was on income tax and other current taxes, which amounted to RM47.8bn (4.9%). This was followed by:

• Current transfers, including remittances abroad: RM28.2bn (2.9%)
• Household savings: RM15.9bn (1.6%)

A look at who earned the income

Malaysian citizens earned RM510.3bn in employee compensation in 2021. Urban areas accounted for the bulk of this figure at 82.9%, while rural areas contributed 17.1%.

By income group, the breakdown was as follows:

• Middle income households: RM218.3bn (42.8%)
• Low income households: RM166.5bn (32.6%)
• High income households: RM125.5bn (24.6%)

From a gender perspective, male employees earned RM317.6bn (62.2%), outpacing female employees, who received RM192.7bn (37.8%).

These figures provide a snapshot of Malaysia’s household income landscape in 2021.

Lead image / DOSM