KUALA LUMPUR (Sept 23): The Poverty Line Index (PLI) in urban areas should be increased to RM3,280, which more accurately reflects relative poverty as measured by the median income, said an academic.

The current PLI of RM2,208, which was revised from RM980 in July after 15 years, does not sufficiently address living conditions, especially in the Klang Valley, Johor and Penang, said Datuk Dr Denison Jayasooria, who is co-chair of the Malaysian CSO-SDG Alliance and also the Deputy Chair of Society for Promotion of Human Rights (PROHAM).

“If relative poverty is still [measured] using median income, then the median income released by the Statistics Department is actually RM6,561... which will mean the PLI for the urban [areas] should be RM3,280,” he said at the United Nations Development Programme Webinar: Unpacking Malaysia's New Poverty Line Income (PLI) & Multidimensional Poverty Index 2020 Report Findings here today.

“I think there needs to be a re-think because in our society, we need to ask ourselves, what is a quality of life that is now acceptable.”

“For example, a family of five living in a one-room apartment or house, I reckon a lot of people will say it is unacceptable... or if someone is only eating a meal a day, or not going to school, it might not be acceptable,” he added.

For perspective, the new PLI is still lower than the expected minimum living wage for a single adult residing in the capital of RM2,700 set by the Bank Negara Malaysia (BNM).

He added that more indicators of poverty are needed as the PLI does not capture income deprivation and vulnerability.

Denison also acknowledged that each government agency uses different criteria for eligibility access to intervention programmes.

“I think that would be the key indicator whether unemployment assistance, income generation, or cash transfers are available or other access to education, scholarships, loans, this kind of thing. So I think the standardisation of delivery is a key concept,” he said.

In response, Emeritus Professor Datuk Norma Mansor, director of the Social Wellbeing Research Centre (SWRC), said the minimum living wage set by BNM is to signal to employers and the business sector that this is the fair wage.

“The difference of agencies and authorities defining or rather proposing a different figure is due to different purposes.

“Although when you talk about living wage, the living wage of RM2,700 is different for someone in Kuala Lumpur and someone in Kota Bharu. So our centre, together with the EPF [Employees Provident Fund] has launched Belanjawanku or the reference budget where we talk about the cities,” said Norma.

According to her, the Belanjawanku: Expenditure Guide for Malaysian Individuals and Families provides minimum monthly expenditures on various types of goods and services for different households in the Klang Valley, allowing Malaysians to attain a reasonable standard of living.

She added that the programme also provides a comprehensive guideline encompassing allocation for basic necessities, social participation, recommended savings, loan repayment and emergencies.

Meanwhile, Chief Statistician Malaysia Datuk Seri Dr Mohd Uzir Mahidin said the PLI of RM2,208 for household income is not actually a living index.

“We have not included the value, for example the financial commitment for owning the house, not including the financial commitment to pay or borrow from other institutions,” he said, adding that the actual cost of living numbers vary by city and state.

“That is not for the poverty measurement but that is based on cost of living. Then it is something we can assist the stakeholders to look at with a bigger and broader spectrum of what is happening in terms of income and wages,” said Uzir.

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