URBAN poverty cannot be measured by income alone, as high housing, transport, food and childcare costs continue to leave many households struggling financially, says Datuk Seri Wee Jeck Seng (BN-Tanjung Piai) (pic).
He said many urban families earned above the official poverty line but had little money left after paying for basic necessities, leaving them vulnerable to unexpected expenses such as medical bills or even job losses.
“Malaysia’s median formal-sector salary reached RM3,027 a month in March 2026, while Kuala Lumpur’s median salary stood at RM4,064 in September 2025,” he said during the Budget 2027 debate in the Dewan Rakyat yesterday.
However, Kuala Lumpur’s poverty line income had reached RM3,011 a month, highlighting the narrow gap between earnings and the minimum income required to meet basic needs.
“Although urban poverty fell from 4.5% in 2022 to 3.7% in 2024, these figures did not fully reflect the financial pressures faced by families living in cities.
“The relative poverty rate was 16.7% in 2024, with a relative poverty line of RM3,509 a month. Those who are just above the poverty threshold should not be overlooked,” he said.
“They may not be categorised as poor, but losing their jobs, facing health problems or dealing with rising living costs can be enough to push them into poverty,” he added.
Wee called for government assistance to be assessed according to location-specific living costs, household size, essential expenditure and changes in income, with eligibility reviewed regularly to ensure aid reaches those who need it.
“Cash assistance alone will not resolve urban poverty. Its underlying causes need to be addressed through affordable housing, efficient public transport, fair wages, affordable childcare and skills development.
“The real measure is whether people can afford their basic needs, build emergency savings and enjoy a more secure life,” he said.
Wee also questioned the government’s plan to retain the Sales and Service Tax (SST) while incorporating elements associated with the Goods and Services Tax (GST), asking why an improved GST was not being considered instead.
He said SST collections reached RM55.9bil in 2025 and were projected to rise to RM59.6bil in 2026, but high collections alone did not establish whether the tax system was fair, transparent and efficient.
“The government should clarify how its proposed approach will work, including tax credits, exemptions and refunds, while minimising compliance costs for small and medium enterprises,” he said.
Wee said an improved GST should be considered with a low starting rate, safeguards for essential goods, faster refunds and sufficient transition time for businesses.
On local infrastructure, he sought clarification on the status of a proposed 4km bypass connecting Jalan Sawah to Jalan Ulu Choh, intended to ease congestion at the entrance to Pekan Nanas from the Tok Kulai direction.
The project, announced in 2022, initially carried an estimated cost of RM56mil, which later rose to RM65mil.
Wee asked what had caused the RM9mil increase, whether the project had been prioritised under the first rolling plan of the 13th Malaysia Plan, and when construction would begin.
He warned that prolonged delays could lead to further cost increases.
Wee also called for a clear timeline for upgrading Pontian wholesale market, which he said remained in poor condition despite its importance as a trading centre for fresh fish and seafood.
“There are problems including leaking roofs, ageing structures and limited parking, unlike the condition of the upgraded Pontian public market nearby,” he said.
