Cost Of Living In Johor: Why It Only Makes Sense If You Are Working In Singapore

Situated a short distance away, many Malaysians have crossed the border to work in Singapore for the favourable currency exchange rate, high salaries and career progression. 

To cope with living costs, some Malaysians continue to reside in Johor as they commute back and forth between Johor and Singapore every day for work. This has allowed them to enjoy currency gains and live comfortably in Johor. 

However, some who are living and earning a salary in Johor are starting to feel the pinch of rising prices of items. Recently, an engineering fresh graduate residing in Johor Bahru expressed his frustration at being offered a monthly salary of only RM2,500 to work in the state on social media platform Threads. He had found it difficult to cope with the financial costs of living in Johor, which seemed comparable to that of living in Kuala Lumpur city centre, due to stagnant wages in the state.  

The post went viral with some sharing his sentiments, raising the question if cost of living in Johor has become too high. 

How Much Do People Spend In Johor Bahru? 

According to EPF’s Expenditure Guide, Johor Bahru has the second highest monthly expenses in Malaysia for 2024. A single individual living in Johor Bahru requires an estimated RM2,400 for living costs per month. 

The following table shows the estimated monthly expenses of different household categories in Johor Bahru.  

Source: EPF 

Meanwhile, the average monthly salary for workers in Johor is RM2,500 as of September 2024. This is slightly higher than the estimated monthly expenses of RM2,400 for a single person living in Johor Bahru, leaving very little room for unexpected incidences.  

As for Malaysians working in Singapore, a study found that more than 60% of the respondents were earning around S$1,500 to S$3,599 per month. For example, with the current exchange rate being around 3.3, Malaysians could work in Singapore and earn a salary of S$1,500, which is equivalent to around RM4,900. This is significantly higher than the estimated monthly expenses required to live in Johor Bahru as a single individual.   

EPF’s Expenditure Guide was developed based on actual spendings on common goods and services by households in cities in Malaysia including food, housing, healthcare, personal care, childcare, transportation, utilities, social activities, discretionary expenses and even personal savings.  

The guide also included a breakdown of monthly expenses according to different types of spendings. Some of the top expenses include food, transportation and housing. Most household categories spend the most on food.  

For single individuals with a car, the highest expense is transportation at RM650. This is followed by food and housing at RM640 and RM280 respectively. As the public transportation system in Johor Bahru is not as well-connected, residents may tend to rely on cars to get around the city. 

The housing costs for married couples are computed based on monthly housing loan repayment or rent, whichever is lower. The housing costs for senior households are calculated according to housing loan repayment on a property purchased 20 or 30 years ago or current monthly rent, whichever is lower. 

The EPF Expenditure Guide indicates the minimum level of expenditure required to reach a reasonable standard of living. The monthly expenses for people living in Johor Bahru could be higher than indicated in the guide.   

For example, the guide indicated that a single individual pays an estimated RM280 per month for room rental. A search on PropertyGuru found that rooms of the size of 100 sq ft to 180 sq ft in Johor Bahru come with a rent of RM450 to RM500 per month. 

Living Costs In Johor Bahru Vs Kuala Lumpur 

The costs of living in capital city Kuala Lumpur have always been expensive. Kuala Lumpur has the highest living costs in the country for year 2024. Johor Bahru trails behind Kuala Lumpur as the second most expensive place to live in.  

According to EPF’s Expenditure Guide, a single person living in Kuala Lumpur spends around RM2,800 a month, while his counterpart in Johor Bahru would require RM2,400 a month, with a difference of RM400 or 14%.   

Being the capital of the country, Kuala Lumpur is the most densely populated territory in the country, with rising demand for housing and services. 

Notably, housing costs were significantly more expensive in Kuala Lumpur compared to Johor Bahru.  

However, the average monthly salary for individuals in Kuala Lumpur is significantly higher at RM3,964 compared to in Johor Bahru at RM2,500. The stagnant salary in Johor is perhaps the why people there are having difficulty coping with rising living costs.

Read Also: What’s The Median Salary In Malaysia (At Every Age, Gender, Race And State)?

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