Coping With the Increasing Cost of Living Among Middle-Income Households in Klang Valley

Abstract

The increasing cost of living poses significant financial challenges, leading
to stress and anxiety and prompting the employment of coping strategies. While many
studies focus on low-income groups, middle-income households are increasingly affected
by the cost of living, as it impacts their stability and well-being. Understanding their
coping strategies is crucial, as their economic participation is vital in sustaining economic
growth. This study examines coping strategies employed by urban middle-income
households in the Klang Valley to manage rising living costs, utilising a qualitative case
study approach. In-depth interviews were conducted to explore their experiences and
responses to economic challenges. The thematic analysis reveals three primary coping
strategies: asset-based, behaviour-based, and assistance-based strategies. Asset-based
strategies include selling assets, using savings, delaying payments, and utilising credit
facilities. Behaviour-based strategies involve lifestyle modifications, such as reducing
leisure expenditure, adjusting consumption, prioritising essentials like education, and
taking on extra jobs. Assistance-based strategies include seeking financial and social
support from family, friends, and institutions. The study underscores that middle-income
households face significant financial pressures, often adopting strategies similar to those
of low-income groups. These highlight the need for policymakers to address the challenges
by expanding financial support mechanisms. Recognising the critical role of the middleincome
group in economic development is essential to balanced growth and reducing the
impact of rising living costs.