Wages Fail to Keep Up with Inflation: 80% of Malaysians Become 'Moonlight Clan'

Working regular jobs during the day and driving for Grab after work, or taking on freelance gigs on weekends, has become a common reality for many Malaysian households. Local scholars indicate that with the rising cost of living, around 80% of Malaysians belong to the 'moonlight clan'—spending nearly all their income on daily expenses, as a single salary can no longer keep pace with inflation.

According to media reports including the New Straits Times, as of December 2025, approximately 70.2% of Malaysia’s employed population earns RM5,000 (about NT$40,000) or less per month, highlighting the financial pressure faced by the majority of salaried workers due to increasing living costs.

Malaysia classifies household income as follows: families earning less than RM5,860 monthly fall into the B40 (Bottom 40%) category; those earning over RM12,680 belong to the T20 (Top 20%); and the middle 40% are classified as M40 (Middle 40%).

Using the 'Basic Cost of Decent Living' (PAKW) benchmark, a childless couple requires at least RM3,157 per month to maintain a basic standard of living. For a family with two children, this rises to RM5,445. These figures vary by region, with Kuala Lumpur being the most expensive, followed by Selangor and Penang.

Hidayat, a part-time Grab driver who drives after work, told Central News Agency reporters that the cost of living in Kuala Lumpur is becoming increasingly burdensome. With his regular salary failing to keep up with inflation, he now takes extra rides at night to supplement his income.

He said many full-time Grab drivers work over 10 hours a day. After deducting fuel, vehicle maintenance, and other operational costs, their net income is about RM200. 'It may sound like a lot, but after paying the mortgage, children’s education, and daily expenses, there’s almost nothing left,' he said.

Citing Bank Muamalat’s chief economist Afzanizam, the New Straits Times reported that continuously rising living costs are eroding household purchasing power, especially for families supporting dependents in high-cost urban areas.

He believes that urban households earning less than RM10,000 per month may struggle to afford basic living expenses and other financial obligations.

Nuradli, a lecturer at Universiti Sains Islam Malaysia (USIM), also noted that about 80% of Malaysians are part of the 'moonlight clan,' with most people’s financial situations extremely tight—spending nearly all monthly income on daily needs, leaving little to no room for savings.

From office workers driving Grab after hours in cities to street vendors selling nasi lemak and fried bananas in Malay kampungs (villages), a second income is no longer just extra—it has become a crucial pillar for many Malaysian families to sustain their livelihoods, as wage growth fails to match inflation. (Edited by Chang Chih-hsuan)