In 2023, the cost of living have sky-rocketed, and as such we cannot today rely on the 2019 poverty line income of RM2,208-00 anymore - it has to be revised to reflect the current reality where even the cost of eggs and cooking oil has sky-rocketed, partly because the government have even removed subsidies for basic food items.
In 2019, Malaysia set a NEW poverty line income of RM2,208. Before that the poverty line income was RM980. What changed in 2019 was also the method of determining poverty line income, and if the new poverty line income method was used, then in 2016 it should have been RM2,141 - not RM980. In copying and pasting the Malay Mail article, some tables was not copied - so follow the link to see the original Malay Mail Report
Malaysia’s chief statistician Datuk Seri Mohd Uzir Mahidin explained that the new figure was obtained based on changes in methodology that now emphasised healthy eating and quality basic needs....
The previous 2005 methodology, which determined the national PLI of RM980, was based on the minimum food requirements of each household member and 106 non-food items based on the spending patterns of the country’s bottom 20 per cent group (B20) in the 2004/2005 household expenditure survey.
In contrast, the new 2019 methodology which determined the national PLI of RM2,208 was based on optimum food requirements and healthy eating, as well as 146 non-food items from the B20 households’ spending pattern in the 2019 household expenditure survey.
Hence, what we need now is the REVISED POVERTY LINE INCOME - Is it today with the increased cost of living and the dropping Ringgit about RM5,000 - If so, the number of persons/households living in poverty and 'hardcore poverty' is much much higher.
One way of eradicating is to drop the poverty line income >>> hopefully Malaysia will not do this.
How do we OVERCOME poverty - it is certainly not just by handing out monies to the poor - which is but a temporary measure to deal with the problems now. More importantly is enable the poor to be able to independently raise their income and household income. And this will take time and the political will to make real changes.
LOSS OF REGULAR EMPLOYMENT - Past governments 'closed their eyes' and 'permitted' changes in employment practices. It allowed for the use of 'short-term contract employment' usually for a year, and after that the worker will have find another employment, and many employers, even if they still need workers, choose to just find new workers. Malaysian government could have put its foot down and insisted on REGULAR EMPLOYMENT for all - which will also give the worker assured employment, where basic worker rights also increase with tenure.
AUTOMATION causes loss of employment - and the Malaysian government caused human toll collectors to lose jobs when they allowed automation. Worse, some of these toll collecting companies were GLCs. Many who worked at toll booths were WOMEN, who chose to work near their home-towns rather than moving to urban centers for jobs. Now, banks and supermarkets may also move towards automation and workers will lose more and more jobs. Remember the government is responsible to provide all its citizens jobs and income. Is Malaysia going to start payment to the unemployed?
Government is responsible for all its citizens from children to senior citizens, and because of government failure, mothers or family members that could have gone out to work and earn an income is 'forced' to stay home to care for children, the elderly parents and even the disabled. The Malaysian government should PAY CARE INCOME, of at the very least the Minimum Wage, to those who have to stay home caring for others. Remember, it is MOST difficult for most household to survive on the earnings of one bread-winner > now both husband and wife need to work and earn an income for the household to survive in modern Malaysia.
MINIMUM WAGES must be increased as an when is needed - but then it should not be a requirement for all EMPLOYERS to pay Minimum Wages >> only the factories, plantations and them employers who make a certain annual income/profit. You cannot ask the small shops and retailers in small towns or in rural areas to pay the same Minimum Wage - another arrangements possibly, that at least 50% of profits should go to labour or their workers.
Maybe even a HIGHER Minimum Wage for manual and 3D work, where Malaysians seems not ready to do. If say, the MINIMUM wage for such work was RM2,000, then maybe more Malaysians would be attracted to take on these jobs.
Hardcore poverty in the country needs to be eradicated this year, said Prime Minister Datuk Seri Anwar Ibrahim.
Malaysia's PM says that hardcore poverty needs to be eradicated this year - BUT again he does not tell us how the government is going to do this. As Prime Minister, he must stop making 'promises' - and start providing the HOW and WHAT exactly is the government going to do to eradicate poverty.... then, at least people will be confident and trust in the government and its STATED plans of action. So, is Anwar going to give ALL hardcore poverty household monies monthly so that they will no longer be hardcore poor but simply poor?
That is NOT a bad idea, what the government should do is to give MONTHLY aid to all those who are poor to make sure that they will be no poor in Malaysia. Pass a LAW to guarantee government aid that will make sure there is no more poverty in Malaysia, and whilst aid is being give - give them the needed skills and ability for them to be able to earn sufficiently to be able to move out of poverty.
How much does the government give them contractors to cut grass beside the roads - was it RM2,000 per km per month. Well, if the poor are given the skills to cut grass and the opportunity to do this, the money will help overcome poverty.
Every town has work to keep roads clean, structures painted and maintained - So, after identifying the poor in the area, giving them this work and paying them may overcome poverty and provide a regular work with regular income. This task could be undertaken by the Local Government...so end contracts to 3rd parties, and give work/income to poor in your area to overcome poverty.
Statistics Dept: Malaysia’s new poverty line income is RM2,208, over 400k households considered poor
KUALA LUMPUR, July 10 — Malaysia revised the national poverty line income from RM980 to RM2,208, which means that over 400,000 households in the country with monthly incomes below this level were considered poor in 2019, the Department of Statistics Malaysia (DOSM) revealed today.
Based on the new poverty line income, DOSM said Malaysia’s poverty levels have fallen in 2019, when compared to the last available figures in 2016.
In announcing the new national poverty line income (PLI), Malaysia’s chief statistician Datuk Seri Mohd Uzir Mahidin explained that the new figure was obtained based on changes in methodology that now emphasised healthy eating and quality basic needs.
He said the DOSM worked with various stakeholders including the Health Ministry to revise the national PLI, following the 11th Malaysia Plan’s launch where it was stated that there was a need for Malaysia to review its poverty level indicator.
The previous 2005 methodology, which determined the national PLI of RM980, was based on the minimum food requirements of each household member and 106 non-food items based on the spending patterns of the country’s bottom 20 per cent group (B20) in the 2004/2005 household expenditure survey.
In contrast, the new 2019 methodology which determined the national PLI of RM2,208 was based on optimum food requirements and healthy eating, as well as 146 non-food items from the B20 households’ spending pattern in the 2019 household expenditure survey.
“From the aspect of food items… before this we looked more towards the concept of ‘minimum’, but this time we stress on the discussion with the Health Ministry — optimum and healthy and quality, and it is based on the 2017 Recommended Nutrient Intake and the Malaysian Dietary Guidelines,” he explained at a press conference today.
Under the new methodology, calculations for the food component of the PLI are now based on servings according to food categories that are converted to price, instead of the previous methodology based on the individual’s calories requirements.
The recommended food servings include fish, poultry, meat, cereal, bread, rice, eggs, vegetables and milk.
As for non-food items, those covered are clothing and shoes; housing, fuel and utilities; furniture; transport and communications; education and health.
What the new PLI means for Malaysia
Based on the new 2019 methodology, the national mean poverty line income for households in Malaysia in 2019 is RM2,208 per month (with RM1,169 for food and RM1,038 for non-food items).
(The RM2,208 figure was obtained by dividing the overall PLI value in each household with the total number of households in Malaysia, DOSM said.)
Also based on the new 2019 methodology, the national mean PLI in 2016 is RM2,141.
By using the new methodology, Malaysia’s absolute poverty rate would be recorded as improving from 7.61 per cent in 2016 to 5.6 per cent in 2019. This would translate into a decrease in households considered poor, namely a drop from 525,743 households falling below the poverty line in 2016 to 405,441 households in 2019.
Size matters when it comes to poverty, with 70.4 per cent of the 405,441 poor households having more than four household members, while 13.3 per cent of these households had four household members, DOSM’s data showed.
Age was also looked at, with the highest percentage of poor households recorded among households with the head of the family aged 45 to 49 (16.3 per cent), followed by those aged 40 to 44 (15.4 per cent) and 50 to 54 (13.1 per cent), with DOSM also noting that those with household heads aged 65 and above recording incidence of poverty at 12 per cent in 2019.
When it comes to absolute poverty levels in the different states in 2019, the highest levels were recorded in Sabah (19.5 per cent), Kelantan (12.4 per cent), Sarawak (9 per cent), Kedah (8.8 per cent), Perak (7.3 per cent), and Terengganu (6.1 per cent). The other states were below the national absolute poverty level of 5.6 per cent, namely Negri Sembilan and Pahang (4.3 per cent), Melaka, Perlis and Johor (3.9 per cent), Labuan (3.1 per cent), Penang (1.9 per cent), Selangor (1.2 per cent), Putrajaya (0.4 per cent), and Kuala Lumpur (0.2 per cent).
The new methodology would also translate to a decrease in absolute poverty in Malaysia’s urban and rural areas to 3.8 per cent and 12.4 per cent in 2019, down from 4.8 per cent and 17.5 per cent in 2016 when the new methodology was used on 2016 figures, DOSM said.
As for hardcore poverty, it would also improve from 0.62 per cent in 2016 to 0.4 per cent in 2019, based on the new methodology. This would translate into a decrease in the number of hardcore poor households, from 45,004 households in 2016 to 27,158 households in 2019.
What if the old methodology was used?
In contrast, the DOSM showed that using the 2005 methodology — which had only minimum food requirements instead of optimum and healthy food requirements — would result in a national PLI of RM983 in 2019 and RM980 in 2016. (The food component of the PLI would have come up to more than RM600, while the non-food component would have come up to more than RM300.)
The old methodology would have resulted in Malaysia’s absolute poverty rate being recorded at 0.4 per cent in 2016 and 0.2 per cent in 2019, or just 24,673 households in 2016 and just 16,653 households in 2019 being officially considered poor.
The old 2005
methodology would also have translated into zero levels of hardcore
poverty being recorded in 2016, and just 0.02 per cent or 1,752
households considered as being hardcore poor in 2019. - Malay Mail, 10/7/2020
PM Anwar: Hardcore poverty needs to be eradicated this year
NILAI, June 24 ― Hardcore poverty in the country needs to be eradicated this year, said Prime Minister Datuk Seri Anwar Ibrahim.
Therefore, he said the entire government machinery, especially the Ministry of Rural and Regional Development (KKDW) and its agencies, must work towards ending it.
“This year, we must eradicate and put an end to hardcore poverty including in Negeri Sembilan,” he said when launching the Sentuhan Kasih Desa programme here today.
Also
present were Deputy Prime Minister Datuk Seri Ahmad Zahid Hamidi who is
also Rural and Regional Development Minister, Negeri Sembilan Menteri
Besar Datuk Seri Aminuddin Harun and Defence Minister Datuk Seri Mohamad
Hasan. ― Bernama, Malay Mail, 24/6/2023
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