Are you happy with your salary? Which states are the happiest when it comes to their salary?

There is a saying – money can’t buy you happiness. However, as things get more and more expensive, it is inevitable that most of us will need to earn more money to cope with it. Recently, Malaysia’s inflation rate rose to its highest in a year while the following food items experienced the highest price increases. 

As Malaysians in different states earn varying amounts of income, does a higher income necessarily mean that they will be happier with it? This article will explore which states in Malaysia have the highest level of happiness when it comes to their income!

Our Data

This article will be utilising data obtained from the Malaysian Happiness Index published by the Department of Statistics Malaysia (DOSM). It surveys Malaysians from different states on their happiness levels with regards to:

  1. Family
  2. Religion
  3. Health
  4. Time Use
  5. Social Participation
  6. Housing and Environment
  7. Working Life
  8. Income
  9. Education
  10. Public Safety
  11. Culture
  12. Emotional Experience
  13. Communication Facilities

The “Income” portion will be used to evaluate the various state’s happiness level with their income. It will be in the scale of 0 to 10, with the following criteria

  • 0 – 2: Not very happy
  • 2 – 4: Not happy
  • 4 – 6: Moderately happy
  • 6 – 8: Happy
  • 8 – 10: Very happy

For data on household income and expenses, this article will be utilising data from the Household Income and Expenditure Survey 2019 published by DOSM also. It contains the breakdowns of median household income and expenses by the various states in Malaysia.

#1: Labuan

Surprisingly, Labuan comes in at first with a score of 9.0, making it the happiest state in Malaysia when it comes to their income. Labuans earn about RM6,726 per month in 2019, making them the 4th highest earning state in Malaysia.

However, that is not the main reason why they are the happiest. Their expenses came up to RM3,550 per month, translating to about only 52.8% of their income. In Malaysia, this is the lowest amount of spending compared to income.

It does help that Labuan is a small island, with duty free products. This make things relatively cheaper compared to their counterparts in other states. It also boasts one of the best tourism spots in Malaysia, especially for water-based activities like snorkeling, diving, and most importantly, the beautiful beaches.

#2: Terengganu

Terengganu makes the list at number 2, with a score of 7.2. Terengganuans earn about RM5,545 per month in 2019, placing them at the 8th position by states in Malaysia. Their expenses per month came up to RM3,835, translating into one of the highest spending to income percentage of 69.2%.

The east coast state famous for its waus and nasi dagang, is also the central location for oil and gas activities, where its offshore oil rigs are a big contributor to the local economy. Furthermore, tourism plays a big part also with its sandy white beaches and gorgeous snorkeling and diving spots in Pulau Redang.

#3: Kuala Lumpur

Possibly the most important state in Malaysia, Kuala Lumpur comes in at number 3 in the list with a score of 7.1. Malaysians in Kuala Lumpur earned the highest median income of RM10,549 per month, while spending about RM5,692 per month. This translates to a percentage of 54.0%, one of the lowest in Malaysia after Labuan and Sabah.

Being the central state for most jobs especially in finance, banking and in general, the services sector, Malaysians working in Kuala Lumpur have a good reason to be happy about their income. Many Malaysians also migrate to KL for a wider array of job opportunities as many big companies have their headquarters situated in the heart of KL.

#4: Putrajaya

Putrajaya, the capital of Malaysia, makes the list at the 4th position, with a score of 6.6. Malaysians in Putrajaya earned the second highest income in Malaysia at RM9,983 per month and spending approximately about RM6,478 per month.

Putrajaya being so high up in this list shouldn’t be a surprise, as most if not all the government ministries are located in Putrajaya. It also helps that many technology and multinational companies make their home in the neighbouring Cyberjaya, boosting the amount of income the state is earning.

#5: Kedah

Kedah comes in at number 5, with a score of 6.5. A median Kedahan household earned about RM4,325 per month in 2019, one of the lowest in Malaysia. In terms of spending, they spend about RM2,759 per month, translating into about 63.8% of their income.

Kedah is a good example of how earning more money does not necessarily equate to more happiness on their income. It is one of the most important agricultural states to Malaysia, supplying many of the rice supplies to other states in Malaysia.

#6: Sarawak

The land of the kenyalang, Sarawak, makes the list at the 6th position. It had an identical score of 6.5 with Kedah, with a median Sarawakian household earning about RM4,544 per month and spending RM2,945 per month.

Home to the largest natural resources such as oil & gas and forestry produces, Sarawakians can find many job opportunities in these industries. In particular, the cities of Kuching, Miri, and Bintulu are the main focal points for the Sarawakian economy.

#7: Perlis

Perlis also scored an identical one to Sarawak and Kedah, at 6.5. Malaysians working in Perlis, earned about RM4,594 per month, while spending RM3,161. This translates into a spending to income percentage of 68.8%, the 5th highest in Malaysia, after Kelantan, Negeri Sembilan, Pahang, and Terengganu.

Being near the border with Thailand, trading-related activities are major contributors to the Perlis economy. Similar to Kedah, it is also a major hub for agricultural activities, that provides job for most Kedahans.

#8: Penang

Penang, being so low in this list, is a major surprise. It scored 6.4 on the happiness level for income, with a median Penangite earning RM6,169 per month and spending an equivalent of RM3,793.

Penang is home to many of the best electrical and electronics (E&E) firms in Malaysia and the world, with these firms being an integral part to the world’s E&E supply chain. Penangites might not be that happy with their income as the lack of affordable housing remains an issue in Penang, particularly on the island.

#9: Johor

Johor, similar to Penang, is also another surprise, being so low in this list with a score of 6.2. Johoreans earned about RM6,427 per month, while spending RM4,025 per month. This translates into a percentage of 62.6% of total income.

With its close proximity to Singapore, many Johoreans make their living there, returning in the evening. The state also boasts one of the key manufacturing and agricultural hub for Malaysia, especially for the oil & gas and palm industries.

#10: Kelantan

Kelantan comes in at number 10 in the list, scoring 6.2 on the happiness level for income. A median Kelantanese household earns about RM3,563 per month – the lowest in Malaysia – and spends RM2,650 per month. The percentage of spending to income at 74.4% is the highest in Malaysia also.

Kelantan is also a prime example in this list that you don’t need to earn the highest income to be happy about it. With its close proximity to Thailand, much of Kelantan’s economy revolves around trade through the land and sea borders.

Conclusion

With high inflation now potentially affecting most of our finances, it is important to evaluate whether you are happy with what you are earning. While earning more money can afford you more things in live, it does not necessarily mean you will be happier about it. Understanding the happiness levels of other Malaysians in other states about their income can help you to reflect on what are you earning money for and what expenses you can forego.

 

Interested to know more ab0ut the happiness index? Let us know in the comments below!

You May Also Like