Malaysia has raised its poverty line by more than 100%. Where do things go from here?

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Malaysia has raised its poverty line by more than 100%. Where do things go from here?
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KUALA LUMPUR: Working as a building manager for the block of low-cost flats he lives in, Lazim Sakel, 50, earns around RM1,800 (US$429) a month. ...

KUALA LUMPUR: Working as a building manager for the block of low-cost flats he lives in, Lazim Sakel, 50, earns around RM1,800 a month.

These days, room rental costs at least four times more, while salary has not moved much once inflation is factored in. "I'm lucky because the most expensive part is over. Three of my kids are working now and I only have two more children in school," he said.Many of his neighbours work odd jobs or as general labourers, drivers or store assistants, with average wages hovering below RM2,000. Quite a number of them cannot afford to pay the monthly RM49.

It calculated an individual's expenditure on food based on servings according to food categories, converted to price. Previously, this was based on individual caloric requirements. In addition, non-food components covered in the PLI include clothing and shoes, housing, fuel, utilities, furniture, transport, communications, education and health.

At the micro-level, Prof Yeah said the minimum wage would have to be revised upwards to reflect the new poverty line. But this would have to be tuned to the country’s economic health and employers’ ability to absorb higher wage costs without aggravating the situation. Therefore, better coordination between states and federal is needed to reduce redundancy and ensure effective targeting.

In urban areas, the poverty incidence was 3.8 per cent, compared with rural areas at 12.4 per cent, Mr Mustapa said.While the PLI’s upward revision should not be ascribed to political motives - as the old methodology had become increasingly untenable - there are undeniable political benefits to gain from the revision, according to a political analyst.

In this public housing block for the hardcore poor, children play handphones and soccer at the void deck.

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