Every Ringgit Counts: Even with Higher Salaries, 77% of Malaysians Cannot Keep Up with Rising Living Cost

Kuala Lumpur, 15 October, 2025 — Higher salaries are not translating into higher living standards for Malaysians. New insights from Central Force International’s Malaysia Consumer Trend Report 2025 reveal that 77% of Malaysians still struggle with rising living costs, underscoring the widening gap between salary growth and purchasing power in reality. Parents are rethinking every expense, young workers delay milestones, and retirees draw on savings just to get by.

Rising Wages, Falling Power

Malaysians are under real and rising financial pressure. On paper, they are earning more. In reality, they’re living with less. The cost of food and beverages rose 17.5% from 2020, almost twice as fast as everything else. Even with the new RM1,700 minimum wage, 63% of Malaysians say government measures have done little to ease daily costs, and more than half report no wage increase at all.

While higher-income groups may absorb higher costs as an inconvenience, the pressure is felt sharply among B40 and lower M40 families with household incomes below RM5,000. Forced to make difficult trade-offs at the grocery store, petrol pump, and even in how families plan their meals, they struggle to survive and save at the same time.

With 55% of Malaysians holding less than RM10,000 in savings, rising prices eat into already limited incomes and weak savings, leaving many to describe feeling stuck, unheard, and without a safety net.

“The cost of living is no longer a passing concern; it’s reshaping how Malaysians think and behave,” said See Toh Wai Yu, Chief Executive Officer of Central Force International. “Parents rethink every expense, young workers delay milestones, and retirees draw on savings just to get by. When even basic comforts begin to feel like luxuries, consumers become more selective and strategic. For businesses, that means earning trust through value, not volume.”

Consumers Are Adapting

Despite financial strain, non-essentials and major purchases are occurring however, Malaysians are being much more strategic about them.

28.8% made a major purchase in the past six months, while 38% plan to do so soon. These purchases are far from impulsive: consumers wait for promotions, switch to store brands, and scrutinise product quality to ensure every ringgit counts.

However, for those who rely on government assistance, money is channelled mainly into food, debt repayment, and savings, underscoring the cautious mood. This means that discretionary spending remains limited to those who can afford it.

“Even when consumers continue to spend, it should not be mistaken for comfort,” added Wai Yu. “They’re not buying more. They’re buying smarter. Businesses that recognise this shift and offer clarity, flexibility, and fair value will stay relevant.”

What This Means for Businesses

For businesses, empathy and value are no longer optional. Malaysians are redefining what “worth it” means. And they expect businesses to keep up.

Aspirational-only branding risks alienating Malaysians who are redefining value in pragmatic terms. To earn trust, companies must focus on:

• Speaking their language: Empathy matters. Acknowledge that while not everyone feels the pinch equally, but show how your brand delivers value to each group.
• Essentialism: Necessity-focused products that meet core needs and deliver real function will speak louder than lifestyle upgrades and ‘nice–to-haves’.
• Affordability: Discounts, instalments, and flexible payment plans are no longer perks. Make affordability meaningful with transparent pricing, value-driven promotions, and ways for consumers to stretch their ringgit further.

“The opportunity for businesses today is not just to sell,” added Wai Yu. “The brands that succeed will be those that show up where consumers need them most, with practical solutions that make everyday life easier.”

About the Report

Central Force International’s Consumer Trend Report 2025 offers in-depth insights into Malaysian consumer behaviour across cost of living, sustainability, and spending priorities. These insights equip businesses and brands of all sizes with the knowledge to adapt effectively to changing realities.

Download the full report here: https://www.cforce-int.com/latest-insights

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About Central Force International Sdn Bhd

Central Force International (CFI) is Malaysia’s leading homegrown market research agency, specialising in comprehensive data collection services since 1996. As a trusted partner and member to global organisations such as ESOMAR and WAPOR, we are dedicated to delivering high-quality, ethical, and impactful research insights. With in-house teams for data processing, quality control, and research, CFI ensures every project meets the highest standards of excellence. Guided by our core values—Ethics, Quality, Care—we empower clients with reliable data to drive informed decisions across diverse industries. Visit us at www.cforce-int.com to learn more.