Table 4 above show the relationship between mean income and mean total expenditure for the three states. Refer to the Table 4, the mean income is directly proportional to and has positive relationship with the total expenditure. In other words, an increase in income will increase the total expenditure as well. Therefore, it is clear that total expenditure is influenced by income of the household. On the average the amount of total expenditure for Pahang is highest and for Kelantan it is the lowest. As the proportion of expenditure in Kelantan is about 68.4 to 69.1 percent of that of the state of Pahang and apparently as Kelantan total income increases relative to Pahang the proportion of spending for the state gradually rises. In Terengganu the proportion of total expenditure in relation to Pahang is higher at lower income that is 91-92 percent for income groups RM 200-600 per month. This table seems to decline to 88-87 percent as total income rises to RM2000-2400 per month in Terengganu.
Based on the discussions in this study, it can be summarized that the current economic situation has shown an impact in terms of income and expenditures. The finding revealed that total expenditure varies slightly between the three states but most of their income was utilized for housing loan, automobile loan and expenditures on food and education. Further finding discloses the fact that saving for all states was apparently minimal and in most cases this variable is not significantly different from zero in all estimated 2SLS models. Respondents in the state of Kelantan could be the worse people suffering from the current global economic crisis because they exhibit the lowest mean expenditures relative to other states of Pahang and Terengganu. Basically the surveys conducted among households of the East Coast of Peninsular Malaysia seem to support the following conclusions:
Increasing cost of living as reflected in higher attainment of Gross Domestic Product (GDP) overtime at the macro level as well as due to increased petroleum and commodity prices have somehow impacted the households to spend more money to survive their family even though they have insufficient earnings.
Insufficient income for the households especially for the rural people does not mean that the household cannot survive the economic condition instead many of them may turn to borrowing as evident from the study whereby borrowings from financial institutions are prevalent among the surveyed households.
In terms of government responsibility and role, there should be an advisory committee to limit borrowing and to promotion, campaign and advertise for certain company in order to educate the households to spend wisely.
The household should adjust or control their spending wisely and according to their urgent needs. A budget is the best way to help direct their spending. By setting amounts for the budget categories it can assure that they fit to their personal preferences. Individual consciousness is the key points to be emphasized to make sure that households are careful in spending their income and they should be encouraged to learn to save for their future needs. In short, learning to manage the money wisely takes time and effort surely it depends on the individuals in the society on how to realize the importance of saving.