PETALING JAYA: The National Multidimensional Poverty Index (NMPI) will be reviewed to ensure poverty and vulnerability are measured more accurately, says Economy Minister Akmal Nasrullah Mohd Nasir.
He said the review, undertaken with technical assistance from the United Nations Development Programme (UNDP) and Oxford University's Poverty and Human Development Initiative (OPHI), would also support targeted public policies and development spending.
Akmal Nasrullah said it would help ensure Malaysia's national poverty measurement framework reflects the country's evolving development priorities and supports implementation of the 13th Malaysia Plan (13MP).
"The NMPI was introduced under the 11th Malaysia Plan.
"Unlike conventional poverty measures based primarily on income, it also captures multiple dimensions of deprivation, including education, health, living standards and access to essential services," he said in a statement on Monday (June 29) after a briefing with senior UNDP officials on the revised index.
"Based on the Household Income and Expenditure Survey (HIES) by the Statistics Department, the index improved to 0.0051 in 2024 from 0.0110 in 2019.
"This provides a more complete picture of vulnerability, helping the government better target social protection, public investment and development programmes," he added.
Akmal Nasrullah said a strengthened NMPI will help ensure policy and programme interventions are more precise, evidence-based and responsive, whether in closing gaps in basic services, strengthening social protection or supporting households and vulnerable groups.
Meanwhile, UNDP resident representative to Malaysia, Singapore and Brunei Darussalam, Edward Vrkić, welcomed Malaysia’s continued leadership in advancing innovative approaches to development measurement.
"As countries become more prosperous, development challenges become increasingly complex. Income remains important, but it does not always capture the range of barriers that prevent people from reaching their full potential.
"The NMPI provides policymakers with deeper insights into the factors affecting education outcomes, health, living conditions and access to opportunities," he said.
He added that this supports more effective policymaking, stronger human capital development and better outcomes for communities across the country.
