Malaysia’s absolute poverty rate at 5.6pct chief statistician

11-Jul-2020 Intellasia | TheedgeMarkets | 7:17 AM Print This Post

The Statistics Department said today the absolute poverty rate in Malaysia improved from 7.6 percent in 2016 to 5.6 percent in 2019 following the revision of the national poverty line income (PLI) according to current needs that emphasize on optimal food intake and quality non-food basic requirements.

In a statement today, chief statistician Datuk Seri Dr Mohd Uzir Mahidin said based on the 2019 methodology, the mean value of the national PLI is at RM2,208, which is within the bottom 10 percent of households.

“Meanwhile, hardcore poverty recorded 0.4 percent in 2019 as compared to 0.6 percent in 2016,” Mohd Uzir said in the statement, which was issued in conjunction with the launch of the department’s Household Income and Basic Amenities Survey Report and Household Expenditure Survey Report at Putrajaya today.

At a press conference there today, Mohd Uzir said the mean value of the PLI rose to RM2,208 per household per month in 2019 from RM980 previously. He said Malaysia’s PLI was last measured in 2016 using the 2005 methodology, which valued the PLI at RM980.

Based on the new PLI, he said the number of poor households declined to 405,441 households in 2019 from 525,743 households in 2016.

Based on the old PLI, the number of poor households increased to 405,441 in 2019 from 24,700 in 2016, according to him.

Malaysian household income and expenditure have also risen. In the statement, Mohd Uzir said median income grew 3.9 percent a year to RM5,873 in 2019 while mean income increased 4.2 percent per year to RM7,901.

“Seven states had median income above the national level. Meanwhile, three Federal states, Selangor and Johor recorded mean income higher than the national level of RM7,901,” he said.

He said mean household expenditure grew 3.9 percent in 2019. He said the department’s household expenditure survey findings showed that demand for services by households is increasing.

“The composition for (the) services component increased to 52.1 percent in 2019, he said.

At the press conference, Mohd Uzir said 61.6 percent of Malaysian households’ average income is derived from paid employment, followed by 17.3 percent from self employment, 12.9 percent from property and investments, and 8.2 percent from monetary transfers such as remittances, alimony, pension, and other assistance.

“The survey shows that more people continue to seek self-employment, as this segment rose to 17.3 percent from 15.6 percent in 2016,” he said.

https://www.theedgemarkets.com/article/malaysias-poverty-rate-rises-56-%E2%80%94-chief-statistician

 


Category: Malaysia

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