PETALING JAYA, 10 July 2020 – A think tank has welcomed the government’s revision of the poverty line from RM980 to RM2,208.

The Institute for Democracy and Economic Affairs (IDEAS) said the revised poverty line is based on a more accurate assessment of essential needs, including non-food items and the optimum health calorie intake, and will better reflect the development of the nation.

Earlier today, the Department of Statistics Malaysia announced the revision of the poverty line. Under the previous methodology, the poverty rate stood at 0.4% in 2016, but under the new methodology, the rate has been revised to 7.6% in 2016 and 5.6% in 2019.

Chief statistician Mohd Uzir Mahidin said the revision was in line with current needs emphasising optimal food intake and quality non-food basic requirements.

IDEAS research manager for social policy Wan Ya Shin said the revised poverty line will provide a better basis for policy-making and better targeting of initiatives to help those in need.

“While it is good that the government has adopted this more accurate measure, it also highlights that absolute poverty remains a serious challenge in Malaysia. The hard work of alleviating poverty must be stepped up to address the plight of those most in need.

“I hope that the government will continue in this direction by providing more open access to data, to facilitate a more open discussion about the economic challenges Malaysia continues to face.”

First published in Free Malaysia Today, 10 July 2020