RELATIONSHIP OF DEMAND AND SUPPLY FACTORS WITH COST OF LIVING PRESSURE AMONG B40s’ COMMUNITY

Abstract

The increase in the cost of living is often associated with various global issues faced by many developing countries and it is also not a new issue in the field of economics and social well-being. The main reason for the cost of living pressure is based on the increase in the price of goods to the detriment of the low-income group. The cost of living is a cost that households have to bear not only to meet basic necessities such as food, clothing and shelter but also other necessities for the comfort of living including the cost of education, the cost of mobile services and the cost of vehicles for daily use. The aim of this study was to look at the relationship between demand factors (household expenses) and supply factors (household income) with the pressure of facing rising cost of living among the B40 community. This survey was conducted on 74 respondents comprising staff at private company who were directly involved in answering the questionnaire distributed and the data was analyzed using the Statistical Package for The Social Science (SPSS) version 27.0 software. The results showed that supply factors (household income) and demand factors (household expenses) had a positive relationship with increased cost of living pressures among the B40 community. The supply factor (household income) has a strong relationship with cost-of-living pressures. Therefore, the government needs to raise the minimum wage limit to create a balance with the rising price of goods while reducing the burden on society and thus increasing the standard of living.

Keywords : cost of living pressure, supply, demand.