Malaysia's minimum wage is RM1,500 - but the Statistics say that Malaysians, even in the B40 category, may be earning RM5,000 a month - How is this possible? Is the statistics correct? Was it a comprehensive analysis of ALL in Malaysia - or was it merely a sampling?
A sampling is 'dangerous' as we can get results we want based on the sample chosen - it is best to get real data of all Malaysians and analyze it. One way of doing this is to make it mandatory for ALL Malaysians to submit tax forms - a means of assessing actual income, and sources of income. Yes, the majority may not be required to pay income tax - hence it is just a means of government assessment of the income received by every Malaysian, and thus a better indication of poverty levels...
It is best to look at the family unit - not the household that will look at all living in the same house, even unrelated, tenants, working children who cannot afford their own accommodation.
With the increase in minimum wage for employees from RM1,200 to RM1,500 per month from 1 July 20231 for employers who employ less than five employees other than an employer who carries out a professional activity classified under the Malaysia Standard Classification of Occupations2 (MASCO) as published by the Ministry
Household income - what is 'current transfers received' - which maybe monies received from parents/relatives or maybe even 'loan sharks'? How is that 'household income'.
"This household income comprises paid employment, self-employment, income from investment and current transfers received.
the bottom 40 (B40) income threshold of 3.16 million households is RM5,249, while the middle 40 (M40) group recorded an income average between RM5,250 and RM11,819.How many of the B40 earn RM5,000, and how many earns less than RM2,589? Personally, I believe that the situation is much worse...many hardly make RM1,000-RM2,000.
Anwar Ibrahim's government recently tackled the FELDA Settler's debt - what debt was not disclosed? Was it debts incurred by reason of buying cars, furniture, houses - well most Malaysians have these kinds of debts? Was it debts being monies owed to FELDA?
FELDA - RM10 Billion Bailout? Clarification needed...'Bailing out FELDA or Settlers?' No explanation how DEBT occurred?
One solution in terms of increasing household income is the payment BY GOVERNMENT to women who have to STAY HOME, hence foregoing the ability and opportunity to earn monies to assist the household. These women(sometimes men) have to stay home to care for children, the elderly or the sick/disabled members of their family, where it is without a doubt the responsibility of government. Hence, the government ought to PAY them for their caring work - that is done for the government of Malaysia. If the government had the needed care facilities in place, then they do not have to stay home to care for people....
Government
must PAY housewife who stay at home to care for children, elderly, etc .
With RM2 bill, government can pay 2.4 million housewives RM850 a month?
Now, we have a poverty line income(PLI) of RM2,589 in 2022. Reasonably, the minimum wage should be the poverty line income or higher. It must be the INDIVIDUAL poverty line income, not the household poverty line income - the government must clarify is it individual or family unit poverty line income? With a minimum wage of RM1,500, after lawful deductions for KWSP/PERKESO/etc.. it is much less - so how many hours of overtime must a Malaysian work to earn at least RM2,589?
...the value of the poverty line income (PLI) has increased from RM2,208 in 2019 to RM2,589 in 2022, with the PLI value of food is also up by RM29 from RM1,169 (2019) to RM1,198 (2022)
Households income in Malaysia on the rise, says DOSM
PUTRAJAYA: The median household income of Malaysians increased by 2.5 per cent in 2022 to RM6,338.
The Household Income and Expenditure Survey released by the Department of Statistics Malaysia (DOSM) also showed that the mean household income also grew 2.4 per cent to RM8,479 the same year.
Chief statistician Datuk Seri Dr Mohd Uzir Mahidin said six states reached median income above the national level, namely, Kuala Lumpur (RM10,234); Putrajaya (RM10,056); Selangor (RM9,983); Labuan (RM6,904); Johor (RM6,879) and Penang (RM6,502).
"The income value takes into consideration the mean household size of 3.8 persons, with an average of 1.8 income earners.
"This household income comprises paid employment, self-employment, income from investment and current transfers received.
"Selangor recorded the highest median income growth of 6.5 per cent per year for the period of 2019 and 2022.
"Meanwhile, Kuala Lumpur recorded a decline in monthly gross median household income of 1.0 per cent for the same period," he said at the presentation of the survey here, today.
States recording median household incomes lower than the national average were Kelantan (RM3,614), Kedah (RM4,402), Perak (RM4,494), Sabah (RM4,577), Perlis (RM4,713), Pahang (RM4,753), and Sarawak (RM4,978).
Negri Sembilan, Terengganu, and Melaka had a median household income of RM5,226, RM5,878, and RM6,210 respectively.
DOSM found that of the 10 lowest median household gross income by district, three were in Sabah, four in Sarawak, and three others were in Kelantan.
The district which reported the lowest median household income was in Pitas, Sabah at RM2,329, while the top earning district was Sepang, Selangor with RM12,608.
Uzir said Putrajaya recorded the highest the monthly mean gross household income at RM13,473, followed by Kuala Lumpur (RM13,325), Selangor (RM12,233) and Johor (RM8,517), higher than the national average of RM8,479.
The mean monthly disposable income also increased by 1.7 per cent last year, at RM7,111 as compared to RM6,764 in 2019.
On income distribution pattern, the bottom 40 (B40) income threshold of 3.16 million households is RM5,249, while the middle 40 (M40) group recorded an income average between RM5,250 and RM11,819.
"As many as 1.58 million households are in the top 20 (T20) group with income exceeding RM11,820.
"The T20 group comprised 46.3 per cent of the total distribution of income household, down slightly from 46.8 per cent in 2019.
"Meanwhile, the M40 group comprised 37.6 per cent while the B40 only represented 16.1 per cent of the total income."
The survey also revealed that the income inequality gap in the country has narrowed by 0.3 per cent in 2022, as compared to 2019.
Uzir said the Gini coefficient in urban areas had decreased to 0.393 last year from 0.398 in 2019, and also decreased in rural areas to 0.351 from 0.367.
Gini Coefficient is a measure of statistical dispersion of income or wealth distribution of a nation's residents and most commonly used measure of inequality.
Uzir said the Gini Coefficient by ethnicity also decreased for all ethnicities, with Bumiputera at 0.387 from 0.389, Chinese at 0.412 from 0.417 and Indians at 0.406 from 0.411.
However, he noted that despite the increase in household income in Malaysia, the income gap between ethnic groups was still significant.
"The income gap between Chinese and Bumiputera ethnic groups is at a ratio of 1:0.71 in 2022, compared to 1:0.72 in 2019, while the income gap between ethnic Chinese and ethnic Indians was 1:085 in 2022, a marginal improvement as compared to 1:0.83 in 2019."
Meanwhile, the value of the poverty line income (PLI) has increased from RM2,208 in 2019 to RM2,589 in 2022, with the PLI value of food is also up by RM29 from RM1,169 (2019) to RM1,198 (2022).
He said while the Covid-19 global health crisis had impacted
the incidence of poverty, the absolute poverty incidence in 2022 showed
a decrease to 6.2 per cent from 8.2 per cent in 2021. - NST, 28/7/2023
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