Why do Malaysians spend more on food than South Koreans?

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Past Policies Drive Higher Food Expenditure for Malaysians Compared to South Koreans

Malaysians allocate a larger portion of their income to eating out and takeaway meals than South Koreans due to a confluence of historical policy decisions and structural economic factors. Cooked and takeaway food represents the most elastic and least reducible category of household spending, meaning that while official inflation figures might appear moderate, many households struggle to make ends meet by month's end. This situation is a direct consequence of "unintended consequences of policies of the past" that have shaped Malaysia's economy and wage structure, making it difficult to shift away from these ingrained consumption habits.
Historical Neglect of Agriculture and Food Production

A significant factor contributing to higher food expenditure in Malaysia stems from past administrations' deliberate shift away from agriculture. This strategic move, undertaken over decades, has led to increased food prices as the nation became reliant on imports rather than cultivating its own raw food materials. Consequently, producing local produce, such as ginger or chili, is now challenging to re-establish, and Malaysians have developed an "addiction to imported food" because domestic production was not deemed worthwhile when import costs were manageable.
Economic Structure and Wage Disparities

The underlying structure of Malaysia's economy and its wage levels, in contrast to countries like South Korea, plays a crucial role in this disparity. While the specific comparative economic structures and wage levels are not detailed, the implication is that a larger proportion of income is needed for essential food purchases in Malaysia. This contrasts with other nations where eating out is primarily viewed as a leisure activity, with a greater emphasis placed on spending more on raw materials for home cooking.
Impact of Poor Public Transportation and Time Constraints

Furthermore, systemic issues such as inadequate public transportation have exacerbated the reliance on eating out and food delivery services among Malaysian households. The significant time individuals spend commuting to and from work, coupled with limited time available for food preparation after work, creates a practical barrier to home cooking. These time constraints, a direct result of past policy failures, compel many to opt for convenient, albeit more expensive, ready-to-eat options.
Behavioral Economics Approach in Policy Review

In an effort to address these deeply ingrained spending habits, the government is incorporating a behavioral economics lens into the 12th Malaysia Plan (12MP) Mid-Term Review (MTR). This approach aims to better understand household expenditure patterns and inform policy formulation to improve Malaysians' economic well-being. By examining consumer behaviour, the government seeks to devise strategies that acknowledge the complexities influencing why Malaysians spend more on food compared to their South Korean counterparts.

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Why do Malaysians spend more on food than South Koreans?

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