Measurement of Poverty Indicator: A Case Study From Malaysia Perspective

Abstract

The actual poverty situation in Malaysia is described as unrealistic when the poverty line income (PLI) is used only measures poverty through the income dimension. At the same time, many other dimensions need to be taken into account to describe the actual poverty in the country, even though the original PLI rate has increased from RM 980 (2005) to RM 2,208 (2019). However, the PLI rate is still important to determine who is eligible for assistance. Thus, this article aims to discuss the approach of measuring poverty from Malaysian perspectives. This study uses a qualitative approach that involves data collection methods by documentation and library research. In analysing, this study uses a descriptive approach method. The data collected is then analysed and clarified. This study found that the measurement of poverty indicator in Malaysia use the Multidimensional Poverty Index (MPI) developed by Alkire Foster as the basic framework for measuring multidimensional poverty. This study suggested that poverty needs to be seen holistically, not only depending on income-based measurement but also multidimensional.