From Wallets to Well-Being: Unveiling the Impact of Escalating Living Costs on Mental Health among Parents in Malaysia

The financial well-being of individuals and families is seriously threatened by the rising cost of living in Malaysia, which is primarily caused by changes in tax regulations and the hike in the Overnight Policy Rate (OPR). Based on an extensive examination of the housing affordability index, which is impacted by interest rates and the money supply, the research highlights the difficult conditions that Malaysians must endure. The situation has worsened further due to the OPR increase from 2.75% in March 2023 to 3% in January 2024, which makes housing less affordable and necessitates higher monthly instalment payments. The report also clarifies the effects of economic shifts on a global scale by attributing the increase in interest rates to the surge in the cost of food and other essentials. Individuals are under more financial stress because of these costs rising due in part to the COVID-19 pandemic and political unrest. Two important questions are raised by the research: first, is there a relationship between housing costs rising and people's emotional and general well-being, and second, is there a similar relationship when it comes to necessities? The study looks closely at these issues to understand the intricate relationships that exist between mental health and economic variables. This study is important because it can help Malaysian policymakers create policies that reduce financial stress and improve people's quality of life in general. Additionally, it adds to the global conversation about economic difficulties by considering the wider effects of political unrest and pandemics on people's quality of life and families. In conclusion, this study sheds light on the crucial relationship between shifting economic conditions and mental health, especially considering Malaysia's rising cost of living. By revealing these links, the research hopes to further the conversation about addressing global economic challenges and offer useful information to decision-makers Purpose of the paper – The study aims to explore the complex relationship between growing housing and basic need costs and how they affect Malaysians' emotional and psychological health in modern society. The study focuses on two main research goals: first, it investigates the effects of rising housing costs on people's emotional and mental health; second, it looks into the impact of rising costs for basic necessities on people's emotional and mental health. Methodology/approach – The study used quantitative approach of primary data by distributes questionnaires to respondents who are a parent that aged from 20 years-old until more than 60 years-old in Malaysia. Findings – This study found that escalating costs of housing and basic necessities create significant financial stress for parents and negative emotional well-being for parents leading to a heightened level of stress about their ability to provide for their families. Implication – This study contributes to Malaysian policymakers create policies that reduce financial stress and improve people's quality of life in general. Additionally, it adds to the global conversation about economic difficulties by considering the wider effects of political unrest and pandemics on people's quality of life and families. Originality/ value of paper – The originality of this research is asserted by novelty of the study and limited source of information on relationship between housing costs rising and necessities towards people's emotional and general well-being.