Income Disparity and Rising Cost of Living

Rising cost of living is happening not only in Malaysia but also occurs globally. The amount of money needed by households is insufficient to cover basic expenses like housing and food. Higher-income earners suffer from the shortage of their wealth due to higher living costs, let alone the family below poverty. The objective of the study was to examine factors that contribute to the mismatch between salary increments and the rising cost of living. This study used cross-sectional research in analyzing the data. To find the result of the research question, a survey has been carried out using a Likert scale questionnaire. Descriptive, ANOVA, and multiple regression data analysis were performed utilizing SPSS. The finding reveals that the Inflation rate, Housing Prices, and Income significantly contribute to the mismatch between salary increments and the rising cost of living. It is therefore recommended that future studies should explore the solutions according to these findings.