panduan belanjawanku - kwsp.gov.my · 4 kag ae 201 9 how to use belanjawanku? having adequate...

1KLANG VALLEY • 2019

2 KLANG VALLEY • 2019


BELANJAWANKU?WHAT ISAn expenditure guide, providing estimated minimum monthly expenses on various types of goods and services for different households in Malaysia.

Belanjawanku can help Malaysians plan their personal and family budgeting to achieve a reasonable standard of living.

It is developed based on actual spending patterns on common goods and services by urban households in the Klang Valley.

A Reasonable STANDARD of Living is...

Having enough money to meet basic needs

Living a purposeful and meaningful life

Being involved in community activities and gatherings of families and friends


How To UseBELANJAWANKU?

Having adequate financial resources to afford not just the minimum basics but also the ability to participate in

society for a reasonable and dignified livingSource: Social Wellbeing Research Centre, 2018

“ “

Choose your household category.

Check the budget estimates for your household category.

Use the budget estimate as a guide for your monthly expenses and personal budgeting.

Refer to the budget estimates for other households for future financial planning.


ELDERLY COUPLE SINGLE(CAR OWNER)

SINGLE(PUBLIC TRANSPORT USER)

MARRIED COUPLE(WITH TWO CHILDREN)

MARRIED COUPLE(WITHOUT CHILDREN)

MARRIED COUPLE (WITH ONE CHILD)

THISIS WHOI AM...


ELDERLY COUPLE SINGLE(CAR OWNER)



MARRIED COUPLE(WITHOUT CHILDREN)

MARRIED COUPLE (WITH ONE CHILD)

THIS IS HOW MUCH

I NEED A MONTH...

RM4,420

RM5,730

RM6,620

RM3,090

RM1,870

RM2,490


BASKET TRANSPORT

PERSONAL CARE

HEALTHCARE

CHILDCARE

HOUSING

UTILITIES

SOCIALPARTICIPATION

FOOD

ANNUALEXPENSES

DISCRETIONARY EXPENSES

THINGS I USUALLY SPEND ON...


What Is My Estimated Budget?



Food Housing Transport

RM550 RM300 RM30 RM200 RM100

PersonalCareSavings

Utilities

RM250 RM70 RM90 RM150 RM130

Healthcare

Budget Estimate/month RM1,870

SocialParticipation

AnnualExpenses

Discretionary Expenses


SINGLE(CAR OWNER)Budget Estimate/month RM2,490

Food Housing

RM550 RM300 RM30 RM770 RM100

RM250 RM70 RM140 RM150 RM130

PersonalCareSavings

UtilitiesHealthcare Transport

SocialParticipation

AnnualExpenses




AnnualExpenses

SocialParticipation

Discretionary ExpensesSavings

RM870 RM870 RM70 RM1,020 RM290

RM400 RM100 RM300 RM200 RM300

PersonalCare

Healthcare Utilities

MARRIED COUPLE(WITHOUT CHILDREN)Budget Estimate/month RM4,420



SocialParticipation


RM1,300 RM870 RM100 RM1,030 RM300 RM650

RM400 RM120 RM340 RM240 RM380

PersonalCareSavings

ChildcareHealthcare

AnnualExpenses

Utilities

MARRIED COUPLE(WITH ONE CHILD)Budget Estimate/month RM5,730


ChildcareFood Housing UtilitiesTransport

AnnualExpenses

SocialParticipation

Discretionary ExpensesSavings

RM1,550 RM870 RM120 RM1,040 RM310 RM1,150

RM400 RM140 RM400 RM250 RM390

PersonalCare

Healthcare


Budget Estimate/month RM6,620



AnnualExpenses

SocialParticipation


PersonalCare

Healthcare

RM850 RM700 RM130 RM500 RM290

RM90 RM230 RM170 RM130

Utilities

ELDERLY COUPLEBudget Estimate/month RM3,090


My financial needs

My general spending behaviour

How much I can afford to spend

My spending budget

Money to put aside for savings and emergencies

My short-term and long-term financial goals

Manage my spending prudently

Make better decisions for the right purpose

Strengthen my financial position

BAS-

UNDERSTAND

SO THAT I CAN...

PLAN

How Can I Use Belanjawanku?


Belanjawanku?

Want to Know More About


IntroductionA reference budget is a basket, or collection of goods and services that are considered necessary to achieve an acceptable standard of living. Reference budgets are usually estimated for many different individual and family situations. Unlike poverty line income calculations, a reference budget is not used to label whether an individual or a family is “poor”. Aside from spending on just basic necessities, a reference budget also includes items that allow individuals or families to lead dignified lives with active involvement in society. It is the minimum expenditure required to not just survive, but to thrive in society.

Since a reference budget is a useful tool on many levels, the Social Wellbeing Research Centre (SWRC), University of Malaya has started a research programme aimed at compiling a “Reference Budget for Malaysians”, or Belanjawanku, the first results of which are laid out in this publication. Belanjawanku is a compilation of detailed minimum monthly expenses for different baskets of goods and services consumed by different households, to achieve an acceptable standard of living. It is based on actual spending patterns of individuals and families from urban households in the Klang Valley and can serve as a guide for monthly expenses and personal budgeting.

What Goes Into BelanjawankuTo come up with Belanjawanku, the SWRC has put together common expenditures on food, housing, utilities, transport, childcare, personal care, and health for different categories of household. The budget estimates also include monthly average expenses for social participation, involving festival celebrations or attending weddings & funerals; annual expenses for vehicle maintenance, clothing, or instalment payments on furniture &

BELANJAWANKUA Reference Budget For Malaysians


appliances; discretionary expenses such as insurance, vacations, or contributions to parents; and some savings.

To estimate how much each type of household needs to spend on these items, the SWRC conducted a survey of household expenditures, and survey of prices of goods and services through catalogues, the internet, and at actual business premises, between July 2017 and July 2018. Prices from different sources were averaged, and where there was a wide range of prices, a cut-off point at 25 per cent from the lowest price was used instead.

The SWRC also conducted focus group discussions with academicians, representatives from the EPF, AKPK, the EPU, the National Wage Council, BNM, as well as NGOs, industry specialists, experts from financial institutions, and reference persons from different households. These discussions were added to data from the Department of Statistics’ Household Income and Expenditure Surveys and BNM. Given this wide range of sources, and the addition of expenditures that households commonly spend on, Belanjawanku provides an alternative reference to the official Poverty Line Income (PLI), and is more in tune with the standard of living that Malaysians aspire to.

A Summary of the ResultsUnmarried Malaysians who use public transport, rent a room in the Klang Valley, and do not save, need RM1,620 per month. This estimate includes the basic, social participation, and discretionary expenses. Using a car instead of public transport, raises the required expenditure by 38 per cent to RM2,240 per month. Assuming this individual also wants to save, it raises the total by RM250 to RM2,490, which should provide some financial security for the future. That amount is sufficient to provide a single Malaysian living in the Klang Valley the ability to live decently, take part in society, and at the same time, have some savings for rainy days.

Not surprisingly, married couples need more to maintain an acceptable standard of living, with the minimum expenditure required increasing to RM4,420, under the assumption that couples are more likely to either rent or own a house rather than a room. Having children raises the required expenditure level even more. Having just one child raises the required expenditure by nearly 30 per cent to RM5,730, an increase of RM1,310. Having two children


raises the required expenditure to RM6,620, an increase of RM2,200, or almost 50 per cent higher than for couples without children. Belanjawanku includes spending for day care, diapers, milk and baby food, tuition fees, and pocket money, as part of childcare expenses. On top of these expenditures directly related to childcare, other existing expenditures especially on food, increase noticeably when couples have children.

Belanjawanku also estimates the monthly expenditure for senior couples at RM3,090. Senior couples were found to spend less than other families for most of the items in the expenditure basket, with the exception of healthcare, and are also less likely to save.

Comparing Belanjawanku with Actual IncomeSince Belanjawanku indicates the minimum level of consumption required for people to live comfortably, it also helps reveal the minimum level of income needed for different households. At RM1,620, the minimum income required by a single Malaysian living in the Klang Valley is higher than the current minimum wage of RM1,100. However, it is lower than the median wage of RM2,580 in Selangor or RM2,650 in Kuala Lumpur. Similarly, Belanjawanku’s expenditure estimates for families with children also remain below the median household income reported in 2016, where Selangor’s urban household median income was reported to be RM7,443 and Kuala Lumpur’s household median income was RM7,620. Since Belanjawanku serves as a guide for minimum expenses required, any surplus in income is crucial for people to attain better living conditions such as having more comfortable housing as families grow or invest in their children’s education.

However, the minimum required expenses of RM3,090 for senior couples, which translates to an average of RM1,545 per person, is far higher than the RM1,000 a month assumption the EPF uses to calculate its basic savings requirement for every retiree. This suggests that greater attention and focus needs to be given to whether households are saving enough for retirement. This is especially true since even under the RM1,000 a month assumption, more than half of EPF members near withdrawal age are not even meeting this minimum level.

One key insight arising from a detailed examination of Belanjawanku is that aside from spending on food, an over-sized share of Malaysian household spending actually goes to


transportation when using their own vehicles. For singles and couples without children, the cost of owning a car or motorcycle actually exceeds spending on food. This suggests that increasing the use and availability of public transport would go a long way towards tackling the cost of living burden, and give households a better chance to meet their aspirations.

The Future of BelanjawankuBelanjawanku can be many things to many people. For policymakers and researchers, Belanjawanku can be used as a reference to measure the effectiveness of policy changes (such as the minimum wage and social benefits), and assess the impact of outside events on living standards. For the general public, Belanjawanku can be used as a guide for financial planning and budgeting, and for companies, it can be used as a salary benchmark. Given the variety of uses, Belanjawanku is a valuable addition to the tools available to inform policymakers, NGOs, companies, and Malaysians at large, in making their financial and policy decisions.

With this in mind, under the Belanjawanku programme, the SWRC will periodically publish revised estimates to take into account changes in prices and household expenditure choices. As Malaysia continues on its journey of development, we hope that Belanjawanku will form a common reference point for the dreams and aspirations of Malaysians in achieving a better future.

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Duration of study : July 2017 – July 2018Location of study: Klang Valley

QuestionnaireSURVEY

Focus GroupDISCUSSION

PriceSURVEY

In catalogues, internet, and at actual business premises

Structured questionnaires

Reference persons from different households

Agency representatives - EPF, AKPK, EPU, National Wage Council, BNM, NGOs

Industry specialists and experts from financial institutions

Academicians

SURVEY METHOD & DATA COLLECTION

PRIMARY DATA

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Basic Assumptions ForBELANJAWANKU

PUBLIC primary & secondary

EDUCATION

Average travel distance to work is

30KM

Housing for couples is based on monthly MORTGAGE REPAYMENT or RENTAL

VALUE (whichever is lower)

People are able to make INFORMED

DECISIONS

PUBLICHEALTHCARE

services

Couples own a CAR and a MOTORCYCLE

Housing for singles is based on

ROOM RENTAL People are generally

HEALTHY


SECONDARY DATA

PricingCRITERIA

PublishedDOCUMENTS

Data from DOSM and BNM

Household Expenditure and Income Survey (HES and HIS)

Data on prices from KPDNHEP, LKIM, FAMA, and relevant agencies

PUBLISHED

CONSTRUCTING THE BELANJAWANKU

Average price

Cut-off point at 25% from the lowest price, where applicable

Special offers/discounts not considered

Prices applicable during the survey period


Message from

Financial literacy is a key determinant of people’s overall wellbeing, which eventually contributes to the nation’s financial stability and an increased upward economic mobility. In active collaboration with the EPF, University of Malaya will continue to promote financial education to enhance people’s ability to handle financial matters.

Belanjawanku is useful as an indication of the cost of living as well as a guide for Malaysians to improve their personal financial management in order to lead a happy and meaningful life. Datuk Ir. (Dr.) Abdul Rahim Hj. HashimVice Chancellor, University of Malaya

Vice Chancellor of UM

Even though money is and should not be everything (it definitely cannot buy lasting happiness and health), it is nonetheless a vital component

in addressing a person’s quality of life. Money must be used in the right way and for the right purposes and this can certainly be

achieved with proper understanding and being knowledgeable in financial matters.

Belanjawanku is the result of many detailed studies

and surveys conducted by both the EPF and the SWRC, and is a powerful tool in helping you to make the right choices in your spending.

Belanjawanku provides a comprehensive guideline on the allocation of your income towards different expenditures such as basic necessities (housing, transportation, food and utilities) and entertainment as well as uniquely Malaysian expenses such as balik kampung and ang pow. In addition, Belanjawanku also gives recommendations on how much you should provide for savings and loan repayments as well as putting aside some cash for emergency spending. We hope the information provided in Belanjawanku is practicable and realistic in helping you manage your expenses as we believe a well planned and executed budget will empower you and your family towards financial independence. Keep a look out as the EPF will be introducing more tools and services to assist you in achieving a life that is filled with meaning and purpose.

Tunku Alizakri AliasCEO, the Employees Provident Fund


Message from

Chief Executive Officer of EPF


Glossary


AKPK

Annual expenses

Basic needs

Belanjawanku

BNM

Budget Estimate

Childcare

Discretionary expenses

DOSM

Elderly couple

EPF

Agensi Kaunseling dan Pengurusan Kredit

Includes clothing & footwear, furniture & household appliances, school/kindergarten registration fees, and vehicle maintenance, road tax & insurance. These items are allocated on a monthly average

Includes food, housing, transport, utilities, healthcare, personal care, childcare, and annual expenses

A standard monthly estimated spending guide on basic necessities, social activities, and optional items in order for an individual or a family to live a reasonable and meaningful life

Bank Negara Malaysia

Amount estimated based on focus group discussions and price surveys

Includes clothing, footwear, babysitting, diapers, milk & baby food, pocket money, and tuition fees (extra classes or religious classes)

Includes life, health, accident, & property insurance, sports & games, vacations, membership fees, and donations to religious or charitable institutions

Department of Statistics Malaysia

Couples with at least one spouse aged 60 years or older

Employees Provident Fund


EPU

FAMA

Food

Healthcare

Housing

KPDNHEP

LKIM

NGOs

Personal care

Private Transport

PRS

Economic Planning Unit

Federal Agricultural Marketing Authority

Expenditure on food is based on the recommended nutrient intake from the Malaysian Dietary Guideline (2010) set by the Ministry of Health, Malaysia

Includes care for common illnesses & small injuries, contraception, oral/dental care, and basic family medical chest (first aid kit)

Rental rates for singles are obtained for several districts and based on prices in www.mudah.my, www.ibilik.com, and the Research Structure Plan for Selangor 2035 Report (2010).Owned property prices for couples and families refer to low - medium cost PR1MA and RUMAW1P properties that are below RM200,000

Kementerian Perdagangan Dalam Negeri dan Hal Ehwal Pengguna

Lembaga Kemajuan Ikan Malaysia

Non-Governmental Organisations

Includes hand, oral, & body hygiene, sanitary pads, shaving items, hair & skin care, and basic bathroom equipment

Ownership of a 1000cc engine car and a 110cc motorcycle as well as petrol, toll, and parking fees

Private Retirement Scheme


Includes bus, LRT, MRT, and Komuter fares

Average amount as reported by Focus Group Discussion participants in addition to EPF/PRS contributions

Includes festive celebrations (Hari Raya, Chinese New Year, Deepavali, and Christmas), attending weddings, doa selamat, funerals, or other religious ceremonies/rituals, celebrating newborns, wedding anniversaries, and birthdays

Social Wellbeing Research Centre

Includes mobile phone, cable TV, internet, water, and electricity

Public Transport

Savings

Social participation

SWRC

Utilities

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