Milestone reached with hardcore poverty nearly eradicated - minister

Malaysia has achieved a major milestone with hardcore poverty almost eradicated, recording a rate of 0.09 percent based on the 2024 Household Income and Expenditure Survey (Hies) announced today, compared with 0.2 percent in 2022.

Finance Minister II Amir Hamzah Azizan, who is also serving as the economy minister, said the achievement reflects the effectiveness of various initiatives to boost people’s income, empower urban communities, and enhance public well-being, which will continue to be pursued by the government.

According to international standards, the target for hardcore poverty eradication is considered achieved when the rate is within three percent or below.

“The standard of living has improved, with the average monthly household income rising from RM7,901 in 2019 to RM8,479 in 2022, and further to RM9,155 in 2024 — an increase of 3.8 percent compared with 2022.

“The Gini coefficient, which measures income inequality, has also narrowed from 0.404 in 2022 to 0.39 in 2024. This is a positive indicator in the nation’s socioeconomic landscape,” he said when launching the Hies 2024 report today.

Based on the report, Amir said the incidence of absolute poverty also declined to 5.1 percent in 2024 from 6.2 percent in 2022.

He explained that Hies is a statistical instrument used to measure household socioeconomic progress and improvement.

He said it serves as one of the main references for formulating national economic and social policies, including poverty eradication programmes, income enhancement, reduction of income inequality, and addressing the cost of living.

“From the findings of this survey, the government is able to provide statistics and information on income levels, household expenditure patterns, poverty status and the classification of households by income group in Malaysia.

“The benefits of this survey can be seen in the effectiveness of government poverty eradication programmes, with the poverty rate having fallen significantly from 49.3 percent in 1970 to 6.2 percent in 2022,” he added.

Social mobility

Amir assured that the government remains committed to eradicating poverty in all its forms, regardless of race, religion or region.

“The approach to poverty eradication must focus on enhancing social mobility, not merely providing temporary aid.

“Social mobility will be strengthened through efforts to empower people to cope with living costs, build a social system based on the principles of the Madani concept, and improve overall quality of life,” he said.

Gradual positive progress

Chief statistician Uzir Mahidin, in presenting the Hies findings, revealed that the three federal territories and three states recorded median household incomes above the national level - Kuala Lumpur (RM10,802), Putrajaya (RM10,769), Selangor (RM10,726), Johor (RM7,712), Penang (RM7,386), and Labuan (RM7,383).

He said Penang recorded the highest annual growth rate at 6.4 percent, while Perak registered the lowest at 2.1 percent.

He added that income distribution trends showed gradual positive progress, with households in the B40 group - comprising 3.28 million households - earning up to RM5,859.

“The M40 income group ranges between RM5,860 and RM12,679, while 1.64 million households in the T20 group earn RM12,680 and above,” he said.

- Bernama

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