USM PENANG, 6 May 2026 - In an increasingly challenging cost-of-living landscape, Malaysians are urged to practise more disciplined and strategic financial management to ensure that household stability is maintained.

Lifestyle adjustments through careful planning, spending discipline, and prioritisation of basic needs can help society to not only adapt to current changes, but also face economic pressure with greater confidence.

A senior lecturer in Economics from the Universiti Sains Malaysia (USM) School of Social Sciences (PPSK), Dr. Abdul Rais Abdul Latiff, said the current increase in global oil and gas prices is driven by supply shocks following supply-chain disruptions caused by the conflict in West Asia.

According to him, the global energy market is now responding to risks affecting flows of supply through strategic routes such as the Strait of Hormuz, thereby directly affecting fuel prices at the international level.

"At the domestic level, the increase in the price of cooking gas (LPG) by around RM14 per cylinder for commercial use has further added pressure to the cost of living. This effect subsequently influences the prices of food and services," he said.

He added that although the country's overall inflation rate remained moderate at around 1.4 per cent as of February 2026, the real pressure is felt more clearly by households, particularly regarding their daily expenditure.

In this context, he described the current situation as a phase of "economic vigilance", in which rising energy costs trigger a chain effect across various sectors.

Abdul Rais also stressed that the increase in energy prices is no longer a temporary phenomenon, but instead reflects a structural shift in the global economy from an era of cheap energy to one of higher and more unstable energy costs.

"Society is advised to adopt a comprehensive adjustment approach, including reorganising spending priorities by focusing on basic needs and improving energy-use efficiency to reduce wastage.

"Collective approaches such as carpooling, bulk purchasing, and efficient resource-use planning are seen as capable of helping to control expenditure in the long term," he emphasised.

At the same time, he said, strengthening one's personal financial position need to be given serious attention through the creation of an emergency fund and prudent debt management to increase resilience in facing economic uncertainty.

"This changing economic landscape calls for a shift in mindset among society so that people are better prepared to face an increasingly challenging new reality, while ensuring that household financial well-being remains protected," he added.

Abdul Rais also shared several other self-initiated measures that the public can practise to begin planning expenditure prudently and wisely. These simple steps can be seen below:

5 Practical Tips for Managing Expenditure Prudently -

1. PRIORITISE NEEDS, NOT WANTS
Distinguish essential expenses (food, rent, bills) from wants (gadgets, entertainment). Make it a habit to ask yourself: "Do I need this, or do I merely want it?"

2. PRACTISE A CLEAR MONTHLY BUDGET
Set a spending limit every month. Simple methods such as 50-30-20 (needs-wants-savings) can help control cash flow.

3. SAVE EVEN A LITTLE, BUT CONSISTENTLY
Build an emergency fund covering at least 3-6 months of expenses. Start with a small amount; what matters is consistency.

4. CONTROL DEBT AND AVOID 'EMOTIONAL DEBT'
Do not spend and incur debt merely to follow trends or social pressure. Ensure debt commitments do not exceed your repayment capacity.

5. REDUCE DAILY WASTAGE
Small matters such as eating out too often, wasting electricity, or unused subscriptions can affect finances in the long term.

If practised consistently, these steps can help to build financial stability and to avoid stress when the cost of living continues to rise.

 

Original Text: Marziana Mohamed Alias/Translation: Mazlan Hanafi Basharudin