Page 205 - Contributed Paper Session (CPS) - Volume 7

CPS2062 Nurul Fatihah M. et al.
food and necessities of life together. On the other hand, household
expenditure can be broken down into two types; household consumption
expenditure is the value of consumer goods and services acquired, used or
paid for by a household through direct monetary purchase, own-account
production, barter or as income in kind for the satisfaction of the needs and
wants of its members, meanwhile household non-consumption expenditure
refers to payments made by payers for services that cannot be identified and
aimed to increase government revenue as well as payments that have no direct
relation to the acquisition of services received, such as membership fees and
gifts to charity donations.
Household expenditure can further be classified into thirteen (13) main
groups (United Nations, 2000). However, in this paper, only twelve (12) items
in household consumption expenditure will be included, namely;
a) food & non-alcoholic beverages;
b) alcoholic beverages & tobacco;
c) clothing & footwear;
d) housing, water, electricity, gas & other fuels;
e) furnishings, household equipment & routine household maintenance;
f) health;
g) transport;
h) communication;
i) recreation services & culture;
j) education;
k) restaurants & hotels; and
l) miscellaneous goods & services.
There are three measurements of expenditure. The first one is acquisition,
which is the value of purchasing during the acquisition of goods and services
without taking into account whether they are fully used or not, or paid in full
or not in the reference period. Acquisition was extended to include the
estimated value of own production of non-durable goods and services and
those given or received as its kind. The second measurement is consumption;
an approach used in certain conditions for durable items that can last long
and the use of utility such as water and electricity. Next is payment. This
involves advance payment to obtain goods and services where the goods and
services have yet to be received in the reference month. For example, the down
payment we made when purchasing a car.
This paper aims to outline the patterns of household consumption
expenditure in Malaysia as well as its CAGR between two survey years to show
changes in how much Malaysians use their income to support their daily
needs.

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