THE Economic Ministry is reviewing its National Multidimensional Poverty Index (NMPI) to provide a more comprehensive assessment of poverty and vulnerability that goes beyond income-based measurements, in a move aimed at improving the precision of public policy, social protection and development planning.
Lawmakers were briefed on the revised framework by Economy Minister Akmal Nasrullah Mohd Nasir and senior officials from the United Nations Development Programme (UNDP), with technical support provided by UNDP and the Oxford Poverty and Human Development Initiative (OPHI), University of Oxford.
The revision seeks to ensure Malaysia’s poverty measurement system remains aligned with evolving development priorities and supports the implementation of the 13th Malaysia Plan (13MP).
Malaysia first introduced the NMPI under the 11th Malaysia Plan (2016–2020). Unlike traditional income-based measures, the index captures multiple dimensions of deprivation, including education, health, living standards and access to basic services.
Based on the Household Income and Expenditure Survey conducted by the Department of Statistics Malaysia (DOSM), Malaysia’s MPI improved to 0.0051 in 2024 from 0.0110 in 2019, indicating a reduction in multidimensional deprivation over time.
Officials said the revised NMPI framework will allow the government to better identify communities facing overlapping forms of deprivation and allocate resources more effectively.
Minister of Economy Datuk Seri Mohd Nasir said effective policymaking requires a broader understanding of living conditions beyond conventional economic indicators.
“The National MPI is a policy tool that will help the Government identify overlapping deprivations and design more integrated solutions, rather than addressing poverty in a fragmented way or through a single dimension alone. This will support our efforts to deliver inclusive growth whose benefits are shared across every segment of society,” he said.
He added that as Malaysia advances its inclusive development agenda, poverty measurement must also evolve to ensure interventions are more precise, evidence-based and responsive to real-world needs.
UNDP Resident Representative to Malaysia, Singapore and Brunei Darussalam Edward Vrkić welcomed Malaysia’s continued efforts to enhance development measurement tools, noting that income alone does not fully capture barriers to opportunity and that the NMPI provides deeper insights into challenges affecting education, health, living conditions and access to opportunities, enabling stronger human capital development and improved policy outcomes.
Members of Parliament were also briefed on how the NMPI could inform constituency planning, parliamentary debate, budgeting decisions and programme monitoring, drawing on international best practices in multidimensional poverty measurement. - June 29, 2026
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