THE government’s review of the poverty line index (PLI) has been ongoing since March, Prime Minister Dr Mahathir Mohamad told the Dewan Rakyat today. 

The review is being conducted by the Statistics Department and the Health Ministry in collaboration with the relevant agencies.

“I have also instructed the Economic Affairs Ministry to study the United Nation’s Special Rapporteur’s End of Mission Statements report,” said Dr Mahthir, who is also Langkawi MP.

He was responding to a question by Port Dickson MP Anwar Ibrahim on the actions taken by the government in relation to the findings of the UN report, which highlighted the undercounted state of poverty in the country.

In August, UN special rapporteur on extreme poverty and human rights, Professor Philip Alston, had said a more realistic poverty rate for Malaysia would be between 16% and 20%.

The current claim that the poverty rate is 0.4% is outdated, as it was based on yardsticks more suitable for Malaysia in the 1970s, he said on a visit here.

Dr Mahathir acknowledged that going by old standards, Malaysia’s poverty level has been reduced drastically. However, conditions have since changed. 

“If we look at the old PLI, of course there has been a reduction in the state of poverty. In fact, Malaysia is close to completely eradicating poverty if we go by the old standards, which was based on the state of poverty in 1971, but the conditions have changed.”

Dr Mahathir said income is not the sole determinant of poverty, but one’s access to perks, facilities and aids, must also be considered. 

“We are proposing that the poverty level be gauged with the ability to purchase three things, which is food, clothing and a roof above their heads. This will determine if an individual or a group is poor,” he said. 

The prime minister said the government will also use the multidimensional poverty index (MPI) which will determine the poverty level in the country.

Dr Mahathir also said while the household income survey (HIS) methodology employed by the UN works in determining the poverty rate on a macro level, it may have shortcomings at the micro level. 

He said it may not paint an accurate picture of consumption patterns, the needs and the actual demography of households at state and district level due to its sample sizing limitations.

On the high unemployment rate and poverty among youths, Dr Mahathir said the government acknowledged that poverty among youths is higher than the average poverty rate.

He said the government is looking to tackle this problem through various skills programmes which will allow youths to seize job opportunities.

Dr Mahathir said Putrajaya will also address the different states of poverty between cities and rural areas, admitting that addressing urban poverty could be achieved “faster” than in rural areas because of multiple job opportunities available in developed areas.

In the national budget for 2020 to be tabled on Friday, Dr Mahathir said that given funds constraints, the government will prioritise its  development spending on poorer states. – October 7, 2019.