Factors influencing the basic needs budget among the middle income earners in selected major cities in Malaysia

This paper investigated the main factors influencing the basic needs budget in three major cities with a high cost of living in Malaysia. The analysis of variance tests result indicated that the Federal Territory of Kuala Lumpur, the state of Penang and Johor are places with high cost of living. T...

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Main Authors: Rusli Latimaha, Zakaria Bahari, Nor Asmat Ismail
Format: Article
Language:English
Published: Penerbit Universiti Kebangsaan Malaysia 2018
Online Access:http://journalarticle.ukm.my/20069/
http://journalarticle.ukm.my/20069/1/jeko_523-3.pdf
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author Rusli Latimaha,
Zakaria Bahari,
Nor Asmat Ismail,
author_facet Rusli Latimaha,
Zakaria Bahari,
Nor Asmat Ismail,
author_sort Rusli Latimaha,
building UKM Institutional Repository
collection Online Access
description This paper investigated the main factors influencing the basic needs budget in three major cities with a high cost of living in Malaysia. The analysis of variance tests result indicated that the Federal Territory of Kuala Lumpur, the state of Penang and Johor are places with high cost of living. The result also revealed that the middle income group are those who earn an income between RM2,992.50 to RM8,999 a month and the salaries of teachers were used as a proxy for the middle income groups. The Ordinary Least Squares (OLS) regression analysis indicated that there is a difference between the basic needs budget for single-adults and one-working parent families and furthermore, the basic needs budget in the cities of Kuala Lumpur, Johor Baharu and George Town is slightly different in each town. By and large, there is a difference in the basic needs budget between single-adults in Kuala Lumpur and Johor Bahru, and between two-working parent families among the three major cities. It is however interesting to note that there is no difference in the basic needs budgets among one-working parent families in these cities. The results also revealed that the total household income, family size, age of head of household, sex ratio, number of rooms, electrical appliances usage cost, broadband subscribers and number of privately owned cars all significantly influenced the basic needs budget regardless of which cities the respondents live.
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spelling oai:generic.eprints.org:200692022-10-11T09:14:16Z http://journalarticle.ukm.my/20069/ Factors influencing the basic needs budget among the middle income earners in selected major cities in Malaysia Rusli Latimaha, Zakaria Bahari, Nor Asmat Ismail, This paper investigated the main factors influencing the basic needs budget in three major cities with a high cost of living in Malaysia. The analysis of variance tests result indicated that the Federal Territory of Kuala Lumpur, the state of Penang and Johor are places with high cost of living. The result also revealed that the middle income group are those who earn an income between RM2,992.50 to RM8,999 a month and the salaries of teachers were used as a proxy for the middle income groups. The Ordinary Least Squares (OLS) regression analysis indicated that there is a difference between the basic needs budget for single-adults and one-working parent families and furthermore, the basic needs budget in the cities of Kuala Lumpur, Johor Baharu and George Town is slightly different in each town. By and large, there is a difference in the basic needs budget between single-adults in Kuala Lumpur and Johor Bahru, and between two-working parent families among the three major cities. It is however interesting to note that there is no difference in the basic needs budgets among one-working parent families in these cities. The results also revealed that the total household income, family size, age of head of household, sex ratio, number of rooms, electrical appliances usage cost, broadband subscribers and number of privately owned cars all significantly influenced the basic needs budget regardless of which cities the respondents live. Penerbit Universiti Kebangsaan Malaysia 2018 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/20069/1/jeko_523-3.pdf Rusli Latimaha, and Zakaria Bahari, and Nor Asmat Ismail, (2018) Factors influencing the basic needs budget among the middle income earners in selected major cities in Malaysia. Jurnal Ekonomi Malaysia, 52 (3). pp. 29-39. ISSN 0127-1962 https://www.ukm.my/jem/issue/v52i3/
spellingShingle Rusli Latimaha,
Zakaria Bahari,
Nor Asmat Ismail,
Factors influencing the basic needs budget among the middle income earners in selected major cities in Malaysia
title Factors influencing the basic needs budget among the middle income earners in selected major cities in Malaysia
title_full Factors influencing the basic needs budget among the middle income earners in selected major cities in Malaysia
title_fullStr Factors influencing the basic needs budget among the middle income earners in selected major cities in Malaysia
title_full_unstemmed Factors influencing the basic needs budget among the middle income earners in selected major cities in Malaysia
title_short Factors influencing the basic needs budget among the middle income earners in selected major cities in Malaysia
title_sort factors influencing the basic needs budget among the middle income earners in selected major cities in malaysia
url http://journalarticle.ukm.my/20069/
http://journalarticle.ukm.my/20069/
http://journalarticle.ukm.my/20069/1/jeko_523-3.pdf