The Malaysian Insight

PENANG, a developed state on par with the Klang Valley, is expected to record higher household spending this year, the state Statistics Department (DOSM) said.

The department is currently conducting a survey to record the incomes and expenditures of over 5,000 households in the state. 

It is part of the nationwide exercise involving 92,200 households for the 2019 Household Income and Expenditure, and Basic Amenities survey that runs until December 31.

State DOSM director Mohd Suhaimi Mohd Yunus said looking at the previous spending pattern, the household expenditure for Penang families would likely be up.

In 2016, when DOSM last conducted the survey, Penang households’ spending on major items and services exceeded the national average in some areas.

Housing, water, electricity, gas and other fuels took up the most spending for Penang households – 29.4% compared to the national average of 24%.

“The spending here maybe due to the higher property prices in Penang, especially on the island. Prices here are like the prices in the Klang Valley.

“Based on my observations, (cooking) gas at RM31 is more expensive here than in places like the east coast and Sabah,” Suhaimi said in a press conference at his office on Jalan Anson today.

In 2016, Penang households also spent more on recreational and cultural services at 5.3% compared to the national average 5%; spent 1.7% on education compared with the national 1.3%; and on other goods and services at 8.6% compared with the national 7.7%.

“Spending on education may also be up. Many parents in Penang spend on tuition classes for their children.”

Penang households spent the same on eating out at restaurants and hotels (13.4%) and on health (1.9%), and slightly less on alcohol and tobacco – 2.3% versus the national 2.4%.

“In developed countries, you often see households spend more eating out. When they eat out more at restaurants and hotels, their spending on food and non-alcoholic drinks will be less.

“This is also the pattern in a developed state like Penang. We expect spending on dining at restaurants and hotels to go up,” Suhaimi said.

Households in Penang spent less on food and non-alcoholic drinks (15.9% vs 18%), clothes (3.1% vs 3.4%), household decoration, equipment and maintenance (3.4% vs 4.2%), transport (10.2% vs 13.7%), and communications (4.8% vs 5%) than the average Malaysian households.

“Other categories of spending should remain about the same. 

“Meanwhile, we expect household incomes in Penang this year to increase by 4% since 2016 across the board,” Suhaimi said.

In 2016, the average monthly household income in Penang was RM6,771. The national average was RM6,958.

The highest income earners lived on the island. The average monthly income of a northeast district household was RM7,756, while a southwest district household made an average RM7,232.

Mainland Penang households earned less – RM5,846 (northern Seberang Prai), RM6,105 (central Seberang Prai), and RM5,630 (southern Seberang Prai).

Meanwhile, the average household monthly income of a B40 family in Penang in 2016 was higher than the national average – RM3,157 compared to RM2,828. – February 21, 2019.

The Penang M40 household also earned a slightly higher monthly average income - RM6,523 compared to the national average of RM6,502. – February 21, 2019.