How has the poverty rate changed since 2016 with the new methodology?

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The poverty rate in Malaysia has decreased by two percentage points to 5.6 per cent in 2019, following an updated methodology for calculating the poverty line income.

The national poverty line income (PGK) for 2019 is RM2,208 per household per month, a significant increase from the previous RM980 in 2016. This updated calculation, which considers a more comprehensive basket of goods and services and a multidimensional approach to poverty, shows a 2019 poverty rate of 5.6 per cent, representing 405,441 households. If the same 2019 methodology had been applied to 2016 data, the poverty rate would have been 7.6 per cent, indicating a reduction achieved through the revised assessment.
Updated Methodology Reflects Current Living Standards

The methodology for calculating the PGK was last updated in 2005, with the 2016 PGK based on this older framework. The 2019 survey introduced substantial changes to better reflect contemporary living conditions. In the food category, the definition shifted from "minimum" to "optimal minimum" food requirements, aligning with the 2020 Food Pyramid and Malaysian Diet Guide, exemplified by the substitution of condensed milk with powdered milk for nutritional considerations.
Expanded Basket of Essential Non-Food Items

For non-food items, the new PGK incorporated 40 new essential items, expanding the total list from 106 in the 2005 framework to 146. This revision specifically considered the necessities for the B20 group, aiming for a more inclusive definition of essential goods and services. The updated calculation also accounted for shifts in household spending patterns and the prevailing prices of items and services in 2019 compared to 2005.
Multidimensional Approach to Poverty Measurement

Beyond income, the government has adopted a more multidimensional approach to gauge poverty. This broader perspective focuses on improving the quality of life across various aspects, including health, education, housing, general living standards, and access to information, in addition to household monthly income. This comprehensive assessment provides a more nuanced understanding of poverty in Malaysia.

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How has the poverty rate changed since 2016 with the new methodology?

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