Malaysia

580,000 M40 households have dropped into B40 since pandemic hit: PM

Absolute poverty rate rises to 8.4% in 2020 from 5.6% in 2019

Updated 4 years ago · Published on 21 Sep 2021 9:38PM

580,000 M40 households have dropped into B40 since pandemic hit: PM
Currently, Malaysia follows the 2019 poverty income line threshold at RM2,208 a month. – The Vibes file pic, September 21, 2021

by Arjun Mohanakrishnan

KUALA LUMPUR – A total of 580,000 M40 households have fallen down the economic ladder into the B40 group since the Covid-19 pandemic hit.
 
In Prime Minister Datuk Seri Ismail Sabri Yaakob’s written reply today to a question by S. Kesavan (Sg Siput-PH) and Sekijang MP Natrah Ismail, the Bera MP said the number amounts to 20% of all M40 households.
 
These 580,000 households previously registered an income ranging between RM4,850 and RM10,959.
 
“Based on the Household Income Estimates (HIES) and Incidence of Poverty Report by the Statistics Department (DoSM), as much as 20%, or about 580,000 households, from the M40 group with incomes between RM4,850 and RM10,959 have shifted to the income limit of the B40 group,” he said.
 
Additionally, Ismail Sabri cited DoSM data showing the incidence of absolute poverty rising to 8.4% last year from 5.6% the previous year.
 
Also, Ismail Sabri said the government will give updates on the poverty income line (PGK) next year concurrently with the Income Survey, Household Expenditure and Basic Amenities (HIES & BA) 2022.
 
“For the information of MPs, the HIES & BA is conducted twice every five years,” he added.
 
“The poverty income line is based on the income needed by a household to satisfy essential requirements to live active and healthy lives in the community.”
 
Currently, Malaysia follows the 2019 poverty income line threshold at RM2,208 a month. 

Kesavan had asked the prime minister if the government had revised the PGK so that it better reflects the current situation.

Natrah, meanwhile, had asked if the government intends to revise the PGK, as the current rate does not reflect the national unemployment rate and B40 group numbers, which he said are on the rise. – The Vibes, September 21, 2021

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