MALAYSIA may soon qualify as a high-income nation based on GNI per capita. But if 70% of households don’t feel prosperity, perhaps it’s time to ask whether we’re measuring economic success, or simply averaging it.
@KRInstitute found that many households still face a monthly shortfall of around RM250 after covering basic expenses. When income can’t meet necessities, buy now and pay later (BNPL) isn’t a spending habit, it becomes a coping mechanism.
The Ministry of Finance says BNPL loans are only 0.3% of household debt, and most transactions are small (around RM91 on average). Yet over 70% of active BNPL users are from B40 households, suggesting it often fills short-term cash flow gaps rather than funding luxury spending.
GDP, GNI and FDI tell us how the economy is growing. Household incomes, savings and financial security tell us how that growth is being experienced. The two don’t always move together, and public policy should pay equal attention to both.
The real test of a high-income economy isn’t GNI per capita. It’s whether families can pay for housing, food, healthcare and education without falling into debt. Prosperity should be reflected in household resilience, not just national averages.
@KRInstitute reminds us that growth alone doesn’t improve household welfare. The National Wages Consultative Council reminds us why. @datoramanan, the next step is clear: build institutions that ensure productivity gains are shared with workers through stronger wage progression and collective bargaining. – August 7, 2026
Charles Santiago is a former Klang MP