Malaysians are currently facing rising cost of living pressures, especially regarding food prices, as data shows that per capita grocery spending is the highest in Southeast Asia.
According to data from the United States Department of Agriculture (USDA) Economic Research Service, Malaysian consumers' spending on food at home will reach $1,940 per person per year in 2023, the highest figure among regional countries.
The USDA report does not include inflation or differences in the cost of living between countries.
In 2023, the exchange rate of $1,940 that year was equivalent to RM8,848. If calculated at current rates, it is worth about RM8,148.
Meanwhile, Singapore is in second place with an average of $1,831, followed by Thailand ($1,108), the Philippines ($1,070) and Cambodia ($898).
Analysts see several factors that explain why Malaysians spend a relatively high amount on food at home compared to other regional countries.
These include reliance on imported products, the weakening ringgit and a shortage of farm labour.
According to Sunway University economics professor Dr Yeah Kim Leng, other complementary measures being considered include dismantling monopolies and liberalising the food market, reducing transport and storage costs, and improving supply chain efficiency to lower food prices.
He added that Malaysia's higher food expenditure per person compared to other ASEAN countries with lower per capita income can also be attributed to the country's higher income levels.
Although the data does not take inflation rates into account directly, the food component in Malaysia's Consumer Price Index (CPI) basket recorded a higher inflation rate, averaging 3.1% per year for the period 2020 to 2024, compared to the overall CPI inflation average of 1.8% for the same period.
