Overview
Poverty can be measured using various methods. One of the methods that often use by most countries in the world is absolute poverty measurement. The absolute poverty measurement method in Malaysia uses the cost of basic needs approach. This approach considers of Poverty Line Income (PLI) refers to minimum income required by a household to meet the basic needs for a healthy and comfortable life. PLI value includes food PLI and non-food PLI.
Incidence of Poverty
PLI value for the year of 2022 was RM2,589 (2019: RM2,208) with food PLI value was RM1,198 (2019: RM1,169). The incidence of absolute poverty in 2019 was 5.6 per cent. According to the Estimates of Household Income and Incidence of Poverty by DOSM, the incidence of poverty in Malaysia in 2020 and 2021 was 8.4 per cent and 8.2 per cent, respectively. This surge was the result of the spread of COVID-19 which has hit the country and even the whole world.
In 2022, the reopening and recovery of the economic sector has led the incidence of poverty to a decrease to 6.2 per cent. All states recorded an incidence of hardcore poverty between 0 and 0.5 per cent except for Sabah and Kelantan recorded 1.2 per cent and 0.8 per cent, respectively. The incidence of poverty among Bumiputera increased by 7.9 per cent as compared to 7.2 per cent (2019). The poverty incidence also rose among the Chinese and Indians, which were 1.9 per cent (2019: 1.4%) and 5.4 per cent (2019:4.8%), respectively. Sabah recorded the highest incidence of poverty with a rate of 19.7 per cent and followed by Kelantan 13.2 per cent. Meanwhile W.P. Putrajaya and W.P. Labuan recorded the low poverty incidence with a rate of 0.1 per cent and 3.1 per cent.
Relative Poverty
The relative poverty threshold is derived from half of household median income. The relative poverty threshold in 2022 was RM3,169 (2019: RM2,937) with a rate of 16.6 per cent (2019: 16.9%).
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