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A few points/comments about the new RM2,208 poverty line:
1. It is an "average" pov line. This means that depending on your hh composition and where you live, the pov line can be higher or lower than RM2,208. Malaysia's pov line is calculated for each household using the HIES.
1. It is an "average" pov line. This means that depending on your hh composition and where you live, the pov line can be higher or lower than RM2,208. Malaysia's pov line is calculated for each household using the HIES.
2. We then use hh income to determine if a hh falls above or below their own pov line, not the average RM2,208 line. So if you're a single-person hh with income of 2.2k, you may not necessarily be "poor".
3. We use hh income, not salaries/wages. To be precise, we use pre-tax, post-transfer income. It means that we include all the bantuan you receive from the gov. Not just you, but your hh.
4. The PLI is a money-metric pov measure based on a cost-of-basic needs approach. The revision has strength, but we must also acknowledge what it does not measure e.g. non-money-metric and relative deprivations.
5. The idea is not to become fixated with one pov measure as the single source of truth. We need a range of pov measures to get at a closer approximation of the different deprivations hh face. Hence, also relative pov, multidimensional pov, etc.
6. Identifying the poor doesn't mean that the non-poor are not struggling with cost of living issues, debt problems, precarious work etc. But it helps gov to better tailor the assistance given to different segments of society.
7. There are concerns that a higher pov rate would have implications for fiscal resources. It would, for sure. But we shouldn't let fiscal constraints determine the size of poverty.
8. Otherwise, we are trapped in this tautological logic: the pov rate is low, so we can cut back on social assistance; because social spending is low, therefore we shouldn't revise pov rate upwards.
9. I want to congratulate the gov for this improved pov line and rate. We must give credit where credit is due. But important to rmb that improved pov measure does not reduce poverty. It is one of many steps needed, and we've got lots more to do.
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