KUALA LUMPUR: A Multidimensional Poverty Index (MPI) is being considered to provide a more comprehensive measure of poverty that goes beyond income levels, says Akmal Nasrullah Mohd Nasir.
The Economy Minister said poverty in Malaysia is currently assessed mainly on income, but a broader approach is needed to better reflect people’s living conditions.
“If this is to be implemented, several major steps are required, including extensive stakeholder engagement, as the figures may differ from current understandings of poverty.
“We need to ensure fairness in the government’s efforts so that no group is left far behind in terms of wealth and national development.
"This, however, will require collective effort, not just from one party,” he said when winding up the debate on the motion of thanks for the Royal Address for his ministry in the Dewan Rakyat on Tuesday (Feb 10).
Akmal Nasrullah said the 2024 Household Income and Expenditure Survey (HIES) recorded Malaysia’s absolute poverty rate at 5.1%, involving about 416,500 households, while the hardcore poverty rate stood at 0.09%, or around 7,200 households.
He added that poverty figures remain dynamic, with some households moving out of the hardcore poverty category while others may fall into it, as outlined by the 13th Malaysia Plan.
“I prefer to look at poverty through the MPI lens, as it considers factors beyond spending power, such as access to reasonable housing and other non-monetary aspects of well-being,” he said.
He added that the government remains committed to eradicating hardcore poverty and narrowing the development gap between urban and rural areas, including by improving incomes and living standards through better access to basic services such as education, healthcare and social support.
