KUALA LUMPUR (April 29): Malaysians typically begin earning more than they spend from age 29, with their income surplus peaking at 44 at about RM14,523 per person annually, according to the Department of Statistics Malaysia (DOSM).

The surplus then gradually declines, with individuals returning to a deficit by around age 56 as income falls and expenses, particularly healthcare, increase.

The findings are based on Malaysia’s National Transfer Accounts (NTA) 2022, which examine how income and spending change over a person’s lifetime. The data shows that younger and older age groups tend to spend more than they earn, while working-age individuals generate a surplus that supports the broader economy.

In 2022, Malaysia’s life cycle deficit stood at RM477 billion, as total consumption expenditure of RM1,241 billion, exceeded labour income of RM764 billion, said DOSM. This gap is mainly funded through savings and investments, along with government and family support.

Most of Malaysia’s life cycle deficit was covered by savings and investments, totalling RM491 billion — more than the total gap. Most of this came from the private sector, with a smaller portion from the government.

Labour income came mainly from salaries, about RM586 billion, with the rest, RM178 billion, from self-employment. Income tends to peak around age 49, both for salaried workers and the self-employed.

On average, Malaysians spent about RM37,947 per year, with most expenses borne by households, while public spending is largely focused on education and healthcare.

The report shows that the government mainly supports education for the young and healthcare for the elderly, while households pay for most everyday expenses like housing, food, and clothing.

Private spending on education is higher at younger ages, while healthcare spending increases later in life.

DOSM said this marks Malaysia’s first use of the United Nations’ NTA framework, making it one of the few countries — after South Korea and Colombia — to publish this type of analysis, based on official economic and population data.

The report highlights the key role of working-age Malaysians in sustaining the economy, especially as the country faces a gradually ageing population.