ECONOMIC growth should be accompanied by economic justice for a more equitable society.

Assistance to the low-income is not limited to cash aid or entrepreneurial opportunities, also includes education, healthcare, and living conditions, all of which influence the social mobility of the poor.

Quality, affordable, and dignified healthcare, education, and living conditions for all citizens can create an inclusive society.

Thus, there is a need to address the issues of multidimensional poverty.

Comparing metrics

Before the Multidimensional Poverty Index (MPI), the UN used the Human Poverty Index (HPI) from 1997 to 2009 to measure three deprivations: life expectancy (people unlikely to live beyond the age of 40), basic education (adult illiteracy), and economic provision (access to safe water and underweight children).

In 2010, the HPI was replaced by the Global MPI, which factors in more detailed measures of health (nutrition and child mortality), education (years of schooling and school attendance), and living standards (cooking fuel, sanitation, drinking water, electricity, housing, assets).

The World Bank introduced the Multidimensional Poverty Measure (MPM) in 2019, which takes into account monetary (income) and non-monetary aspects such as education (years of schooling and attendance) as well as living standards (sanitation, drinking water, and electricity).

Compared to the Global MPI, the MPM gives more weight to monetary aspects while including fewer metrics on living standards.

Malaysia adopted the MPI in the 11th Malaysia Plan (2016 to 2020) and introduced its own national measure.

It comprises monetary and non-monetary aspects such as health (healthcare facilities and clean water supply) education, and living standards, with emphasis on living conditions, transport, and communication.

Multidimensional poverty in Malaysia

In the World Bank’s MPM report released in April 2023, which was based on the Household Income and Expenditure Survey (HIES) 2019), 0.1% of the Malaysian population experience deprivation in multidimensional poverty (multidimensional poverty headcount ratio).

Metrics that surpass 1% include educational attainment (1.3% of the population with an adult aged grade 9 or above has not completed primary education) and drinking water while 1.4% of the population lacks access to limited standard drinking water). Other metrics include education enrolment (0.7% of the population with at least one school-age child up to the age of grade 8 is not enrolled in school) and sanitation (0.5% of the population lacks access to limited standard sanitation).

Although these metrics represent less than 1% of the population, they deserve attention for improvement.

Looking at the performance of the national MPI in 2019, the health dimension deserves much attention as 6.5% of households have difficulty accessing healthcare facilities (located more than five kilometres away with no mobile health facility), and 3.9% lack access to clean water. In terms of living standards, a proportion of households face housing deprivation: 13.3% lack garbage collection facility; 9.5% experience overcrowding (more than two household members per bedroom); 3.7% live in dilapidated quarters; and 1.4% lack access to either a fixed or mobile phone.

Overall, using HIES 2019 and considering the change in the poverty line income, the adjusted (weighted) national MPI decreased from 1.52 (2016) to 1.10 (2019), with spatial differences between urban (0.36%) and rural (4.01%) areas.

There has been progress in overall MPI performance, but there is a significant gap in living standards between urban and rural areas.

MPI performance

Clean drinking water is an essential component of our daily lives.

In an era of high living costs, citizens bear the burden of various monthly commitments. Installing a water purifier in the house adds extra cost to expenditure.

It is crucial to improve the dams, water reservoirs, water treatment plants, and water pipelines to ensure clean drinking water for the citizens.

In recent years, various stakeholders have sought to improve the condition of water-related assets.

However, the efforts need to be extended to the least developed areas of every state.

Housing deserves more attention. In urban areas, higher housing prices mean buyers have to settle for a distant location, a smaller house such as a serviced apartment, or a high-density condominium.

The values of marriage are shifting among the younger generation. Economic stability is a crucial condition for marriage. At the same time, marital relationships are also more easily broken. Thus, housing needs must also be considered from an individual perspective.

Meanwhile, in the rural areas, poor living conditions has led the government to think of ways to uplift the social economy of rural people. – August 5, 2024.

* Nick Tan Beng Teong graduated with Bachelor of Economics at University of Malaya. A member of Agora Society, Tan believes in policy reforms in order to build a better nation.

* This is the opinion of the writer or publication and does not necessarily represent the views of The Malaysian Insight. Article may be edited for brevity and clarity.