Low-income Malaysians must work longer for basic food items, UM study reveals

Minimum-wage workers in Malaysia must work significantly longer hours than those in other countries to afford basic food items, a study by the Social Wellbeing Research Centre at Universiti Malaya has revealed.

The study found that food affordability was a growing concern for many households, a problem exacerbated by low wages which remain far below international benchmarks.

"While a minimum-wage worker in the Netherlands needs only four minutes of labour to buy one litre of milk, a Malaysian worker must work for 58 minutes to afford the same amount," the study said.

It said the disparity extended across other staples, such as eggs, chicken, and vegetables.

Malaysian workers must work for 130 minutes to buy 1kg of chicken compared to 28 minutes for workers in Australia. For 1kg of beef, Malaysians must work 271 minutes as opposed to 45 minutes for workers in New Zealand.  

Malaysians must also work 92, 47, and 34 minutes respectively to buy 1kg of apples, bananas, and lettuce, as opposed to six, five, and three minutes for workers in the Netherlands and Germany.

The minimum wage in Malaysia is significantly lower than that of peer countries, and a large percentage of the workforce earns below two-thirds of the median wage.

"Unlike rural households, which have direct access to land and can engage in subsistence farming, urban residents are entirely dependent on markets for food.

"This structural shift means that food security in cities is determined not by availability, but by affordability.

"Without land to grow their own food, urban dwellers must purchase every meal, making income the primary determinant of access to nutrition," the study said.

It also said that many households were forced to opt for unhealthy, calorie-dense alternatives such as instant noodles and fried foods, which are cheaper but nutritionally inadequate.

It said the low-wage environment forced many Malaysians to dedicate a substantial portion of their income to basic necessities, with food taking up a significant share.

Food inflation also erodes purchasing power: in 2022, Malaysia experienced a 6.8% increase in food prices, with staples such as rice, chicken, and vegetables seeing sharp price hikes.

The study proposed three key policy interventions: establishing a social protection floor, expanding and strengthening school feeding programmes, and introducing automatic minimum wage adjustments based on a low-wage indicator.  

"Strengthening child benefits and income support for older persons and persons with disabilities would ensure that households are not pushed into food insecurity during periods of economic hardship," it said.

It also urged the government to provide at least one nutritious meal per day for schoolchildren to alleviate the cost of food for low-income families.

It said wage reforms could also be made by introducing a structured wage adjustment mechanism linked to inflation, while the median wage would help ensure that low-income workers’ purchasing power could meet the rising costs.

The minimum wage remained at RM1,200 between 2020 and 2023. It was revised to RM1,500 in 2023 and RM1,700 in 2025 following public pressure.