These are the top things that the B40 spend on and how you can help them!

Inequality in Malaysia is becoming more of an issue for everyone. The latest official statistics indicated that inequality has indeed worsened from 2016 to 2019. The gap between the rich and the poor is increasing, and this problem matters to all of us as the social fabric that holds us together is at risk of breaking.

The B40 income group in particular has been hit the hardest by the pandemic in 2020 and 2021 compared to the M40 and T20 income groups. The B40 group spend a bigger percentage of their income on basic necessities and thus are becoming more and more vulnerable.

If you are wondering how you can help B40 group in Malaysia, this article will bring you through the specific items that they spend the most on and direct you to the channels that you can help them!

Our Data

The B40 group is generally classified as households with a household income of less than RM4,800 per month.

Our data is mainly obtained from the Household Income and Expenditure Survey done by the Department of Statistics (DOSM) in 2019. DOSM does publish what kind of expenses each household is incurring by their income levels. For the purpose of this article, we use data from households earning:

  1. RM1,999 and below
  2. RM2,000 to RM2,999
  3. RM3,000 to RM3,999
  4. RM4,000 to RM4,999

#1: Housing, Water, Electricity, Gas & Other Fuels

Spending on housing, water, electricity, gas, and other fuels is the top expense borne by B40 households. On average, they spend about RM610 per month, or about 26.1% of their total spending on this.

Housing in particular probably encompass most of these expenses as most B40 households rent houses instead of owning one. Even if they own a house, their interest payment for the house is likely to be very high compared to their income as houses in Malaysia are still seriously unaffordable.

Regardless of their home ownership status, they would still need the basic utilities such as water, electricity, and gas to have minimum quality of life. Unfortunately, with gas prices rising worldwide, these expenses are only going to get larger.

#2: Food Away From Home (Restaurants)

For the B40 households, you might be wondering why this is second on the list. Shouldn’t cooking at home be the priority in terms of cost savings? In today’s world, it is not enough for just one parent to work and support the family. Expenses on food away from home is at around RM246 per month or about 10.% of total spending.

With both parents probably working to make ends meet, it would be unlikely they have time to cook. If they happen to be truly hardworking, taking multiple jobs would mean even less time is spent at home, what more in the kitchen. Of course anything is possible with some planning, but when desperation hits, it is unlikely one has the time to pause and plan.

Hence, eating out becomes a necessity for some of these families even though it may end up being a large portion of the expenses.

#3: Transportation

Transportation spending comes in at number 3 at about RM242 per month or 10.3% of total spending. For the B40, transportation is very important as it allows them to travel to places outside of their homes and work. It enables them to get a higher salary if there is such a job opportunity further away.

Most of the B40 group live further away from urban areas that have more job opportunities and thus must spend a significant portion of their income on transportation. With the My50 program by RapidKL, transportation has certainly become more affordable.

However, with the higher oil and gas prices today, transportation is expected to become more expensive for B40 households that have to travel by car or motorcycle to work.

#4: Fish and Seafood

Yes, you heard that right. B40 households actually spend the most on fish and seafood in terms of food products. It comes to about RM125 per month or 5.3% of total spending.

There is a reason why fish and seafood are important here. With the higher prices of chicken and beef now because of higher fertiliser prices, fish becomes even more important as an alternative source of protein. Coincidentally, compared to meats like chicken and beef, fish and seafood contain more good fat such as omega-3 fatty acids, giving a boost to those who may be on a less balanced diet.

#5: Vegetables and Fruits

B40 households spend about RM 107 per month on vegetables and fruits or 4.6% of total spending. They are probably the most important sources of nutrients for anyone, as they contain vitamins A, C, and E, magnesium, zinc, phosphorus, and folic acid.

A carrot a day keeps the doctor away. For the B40 group, vegetables are probably the most viable crop that they could depend on. They are widely available and you can even plant them in your backyard.

#6: Rice, Bread & Other Cereals

Spending on rice, bread, and other cereals comes in at number 5. B40 households normally spend about RM109 per month or 4.7% of total spending. Rice and bread are probably the most important staple foods for the Malaysian diet and are cheap sources of carbohydrates.

If you don’t have much meat and fish, you can still eat rice and bread to be full. Rice continues to be the main thing holding up families in Malaysia, as it is heavily subsidised and supported by the government.

Meanwhile, bread prices are a bit more volatile as it ultimately depends on wheat prices. Wheat prices have been quite high due to the Russia-Ukraine conflict in February and this has raised the cost of producing bread.

#7: Communication

Spending on communication services such as mobile and internet is becoming more of a basic necessity, especially for the B40 group. The B40 group is the most at risk of being left behind and replaced by technology. That is why spending on communication services becomes more critical for them to upskill themselves through online courses and find jobs that are mostly posted online.

Spending on this comes to about RM100 per month or 4.3% of total spending. Most B40 households probably spend on the lowest internet speed considering that the cheapest internet is about RM89 per month. For mobile, most of them normally use pre-paid plans to reduce costs.

How You Can Help the B40 Group

Knowing what B40 households spend on the most helps us identify what their highest needs are. If you are blessed to belong to an M40 or T20 household and would like to give back to society, consider helping those in the B40 group. Even the smallest amount can make a difference if we each give a little.

You may opt to directly help households in need, or you may want to work with some established organizations give aid to where it is needed the most. Among which include:

 

Surprised by any of the top spending of B40 households? Let us know your thoughts in the comments.

 

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