How many households are classified as poor in Malaysia in 2019?

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5.6 Per Cent of Malaysian Households Classified as Poor in 2019

In 2019, a total of 405,441 households in Malaysia, representing 5.6 per cent of the total, were classified as living below the poverty line. This classification is based on the national poverty line income (PGK) which was updated in 2019 to RM2,208 per household per month. The methodology for calculating the PGK had not been revised since 2005, making the 2019 update significant.
Updated Poverty Line Income Methodology

The national poverty line income (PGK) was recalibrated in 2019, a revision that had not occurred since 2005. The new PGK stands at RM2,208 per household per month. Had the previous PGK methodology from 2005 been applied to 2016 data, the poverty rate would have been 7.6 per cent, encompassing 525,743 households. The revised methodology indicates a reduction in the poverty rate from an adjusted 7.6 per cent in 2016 to 5.6 per cent in 2019.
Enhancements in Poverty Measurement

Significant changes were incorporated into the updated PGK calculation. The food category now considers a more optimal minimum intake, aligning with updated dietary guidelines such as the 2020 Food Pyramid and the Malaysian Diet Guide 2020. For instance, condensed milk was replaced with powdered milk to reflect healthier choices. Furthermore, the list of essential non-food items for the B20 group was expanded from 106 to 146 items, reflecting updated household spending patterns and the changing costs of goods and services.
Multidimensional Approach to Poverty Assessment

Beyond income, the assessment of poverty in Malaysia now employs a multidimensional approach. This broader framework evaluates the quality of life by considering factors such as health, education, housing conditions, living standards, and access to information, in addition to household monthly income. This comprehensive methodology is applied through surveys conducted biannually by the Economic Planning Unit in the Prime Minister's Department, with support from various government agencies.

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How many households are classified as poor in Malaysia in 2019?

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