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Cost of Living in Sabah 2026 — KK vs Tawau vs Rural

Last updated: 7 October 2026
Sabah food markets, apartment buildings, and rural homes representing cost of living diversity
ℹ️ The quick answer

In 2024 the average Sabah household spent RM3,547 a month, against a median household income of RM4,890 (DOSM). Kota Kinabalu households spent more, RM4,726 on average. Sabah’s poverty rate of 17.7% is the highest in Malaysia, and ranges from 5.7% in Penampang to 50% in Pitas. Electricity costs rose from February 2026 with SESB’s new tariff.

💵
RM4,890
Median HH income
/month (2024)
🛒
RM3,547
Mean HH expenditure
/month (DOSM 2024)
📉
17.7%
Poverty rate
highest in Malaysia
🏙️
RM4,726
KK mean spending
/month (DOSM 2024)
🌾
50%
Highest district poverty
Pitas (DOSM 2024)
⚡
39.70 sen
Avg SESB tariff
per kWh from Feb 2026 (was 34.52)
Mean Monthly Household Spending by District (2024, RM)

Households in Kota Kinabalu spend about a third more than the Sabah average. Tawau households spend the least of these districts.

Source: DOSM, Household Income and Expenditure Survey 2024 (OpenDOSM hies_district)

Cost of living: the squeeze on Sabahan households

Between DOSM’s 2022 and 2024 surveys, Sabah’s mean household spending rose 6.1% (RM3,342 to RM3,547) and median household income rose 6.8% (RM4,577 to RM4,890). Electricity then rose from February 2026 with SESB’s first tariff revision since 2014. Sabah has the third-lowest median household income of any state, after Kelantan (RM4,083) and Perak (RM4,687), and the highest poverty rate (OpenDOSM hies_state, checked 7 October 2026).

The gap between income and expenditure tells the story. Sabah’s mean household expenditure is RM3,547/month against a mean income of RM6,498 (DOSM 2024), The difference covers savings, debt repayments, taxes and other outgoings that DOSM does not count as consumption spending. Averages hide a wide spread: Sabah’s Gini coefficient of 0.405 in 2024 was the highest of any state (DOSM).

What a household budget looks like

DOSM’s state-level figures in our data do not break Sabah’s spending down by category, so we no longer show a percentage split. As a rough guide from SabahGuide, not official statistics, housing, food and transport are the biggest costs for most urban households. Check current rents on property portals before planning a move.

Regional cost comparison: KK vs Tawau vs Rural

DOSM’s district figures show how spending differs across the state (chart above): Kota Kinabalu RM4,726 a month, Sandakan RM3,677, Keningau RM3,542 and Tawau RM3,182, against a state mean of RM3,547 (2024). The notes below are SabahGuide’s rough guide, not official data.

Kota Kinabalu: the most expensive

KK is Sabah’s most expensive city. Rent for a decent 1-bedroom apartment is RM1,000–RM1,500/month in central areas, RM700–RM1,000 in suburbs. Food is slightly more expensive than other cities due to demand and logistics. Transport costs are high if you own a car (fuel, parking, maintenance). A single person needs RM2,000–RM2,500/month to live comfortably; a family of four needs RM4,500–RM5,500.

Tawau: moderate costs

Tawau households spend about a third less than KK households on average (DOSM 2024). 1-bedroom rent is RM500–RM800. Food is slightly cheaper. A single person can live on RM1,400–RM1,800/month; a family of four on RM3,500–RM4,500.

Sandakan & Semporna: cheaper still

Rent is RM450–RM700 for 1-bedroom. Food is cheap due to local production. A family of four can live on RM3,000–RM4,000/month. However, job opportunities are more limited than in KK, and some services (healthcare, education) are weaker.

Rural interior: lowest costs, fewest opportunities

The rural interior (Tenom, Pensiangan, Nabawan and similar) is generally cheaper than KK, though DOSM’s Keningau average, RM3,542, is close to the state mean. Rent is minimal (often free in family homes); food is produced locally; transport costs are low. However, wage opportunities are severely limited, and cash-income livelihoods are scarce. A rural family might have shelter and food security but lack money for healthcare, education, and investment.

Income distribution and affordability

Sabah’s median household income was RM4,890 a month in 2024 and the mean RM6,498 (DOSM). Its Gini coefficient of 0.405 was the highest of any state. The gap is geographic as much as anything: poverty ranges from 5.7% in Penampang to 50% in Pitas.

Absolute Poverty by District, 2024 (%)

Selected districts. Poverty is lowest around Kota Kinabalu and highest in the rural north and interior.

Source: DOSM, Household Income and Expenditure Survey 2024 (OpenDOSM hies_district)

⚠️ Poverty in Sabah: the structural challenge

Sabah’s poverty rate of 17.7% is the highest in Malaysia. This reflects structural issues: limited job opportunities outside agriculture; low wage levels; high dependence on subsistence livelihoods; and geographic isolation. Unlike urban poverty (which can be addressed by job creation and skills training), rural Sabahan poverty is deeply embedded in geography and land tenure systems.

Poverty statistics and welfare support

The average national poverty line income (PLI) for 2024 was RM2,705 a month (DOSM). Sabah recorded the highest incidence of absolute poverty in Malaysia at 17.7%, compared to 5.1% nationally (DOSM, Poverty in Malaysia 2024, released 8 October 2025). In several rural districts it is far higher: 33% in Beluran, 35.3% in Kudat, 40% in Kota Marudu, 41.5% in Tongod and 50% in Pitas (DOSM 2024). The federal government provides cash assistance (renamed several times since BR1M; today Sumbangan Tunai Rahmah, STR) and other subsidies, but these provide only partial relief.

Frequently asked questions

Q Is Sabah cheap to live in compared to Kuala Lumpur?
Prices are generally lower, but so are incomes. In 2024 Sabah’s median household income was RM4,890 a month against RM10,802 in Kuala Lumpur, and mean household spending was RM3,547 against RM8,178 (DOSM). Lower prices do not make up for an income less than half of KL’s.
Q What income do you need to live comfortably in Kota Kinabalu?
Rough SabahGuide guide, not official figures. A single person needs approximately RM2,000–RM2,500/month for basic comfort (rent, food, transport, utilities, emergencies). A family of four needs RM4,500–RM5,500/month to cover rent, food, children’s education, and discretionary spending. The median household income in Sabah is RM4,890 a month (DOSM 2024), so the median family is right at the threshold of comfort.
Q How much is rent for a 1-bedroom apartment in KK?
Rough SabahGuide guide, not official figures. Rental prices in KK vary by location: City centre (Jln Tun Razak, Kota Kinabalu Centre): RM1,000–RM1,500/month. Suburbs (Penampang, Putatan): RM700–RM1,000. Tawau: RM500–RM800. Rural/interior: RM300–RM500 (if available). Rental is the largest household expense for most urban residents.
Q What is the cheapest place to live in Sabah?
The rural interior — Keningau, Tenom, Pensiangan, Tongod — offers the lowest cost of living. Rent is minimal (often included in family homes); food is produced locally; transport costs are low. However, job opportunities are also severely limited. An alternative is smaller towns like Lahad Datu, Semporna, or Kundasang, which offer lower costs than KK while retaining some services and employment.
Q Why is poverty so much higher in rural Sabah?
District figures show the gap. In 2024 absolute poverty was 5.7% in Penampang and 12% in Kota Kinabalu, but 50% in Pitas, 41.5% in Tongod and 40% in Kota Marudu (DOSM). Rural livelihoods rely on smallholdings, fishing and plantation work, with fewer paid jobs and longer distances to schools, clinics and markets.
Q Has cost of living increased?
Between the 2022 and 2024 surveys, Sabah’s mean household spending rose 6.1% (RM3,342 to RM3,547) while median household income rose 6.8% (RM4,577 to RM4,890) (DOSM). Electricity bills also went up from 1 February 2026, when SESB raised its average base tariff from 34.52 to 39.70 sen/kWh.
Q Do low-income families get electricity subsidies in Sabah?
Every SESB customer is subsidised, but not through a special low-usage rate. Sabah’s average base tariff was 34.52 sen/kWh from 2014 against a true cost of supply of 43.83 sen/kWh (state energy plan, 2022–2024 figures), with the gap covered by federal subsidy. From 1 February 2026 SESB raised the average base tariff to 39.70 sen/kWh, still below that cost. The domestic tariff is tiered: the first 200 kWh a month costs 22.02 sen/kWh, rising to 59.85 sen/kWh above 1,500 kWh. A separate 1.20 sen/kWh rebate for homes using under 300 kWh a month ended in June 2018.
Sources & References 11 sources
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