APRIL 8 — Malaysia’s poverty rate is falling, but for many households, life is not getting easier. If you earn above the poverty line, you are not poor, and if you fall below it, you are. This definition is simple, clear, and widely accepted, yet it is increasingly misleading.

Today, poverty does not always present itself as empty pockets. Instead, it often appears in more subtle but equally pressing forms, such as having a full time job that still does not provide financial security, or living in a household that sits just above the poverty line yet remains constantly vulnerable to unexpected shocks. In this context, it becomes evident that while money can measure income, it cannot fully capture lived reality.

The limits of income-based thinking

Malaysia has made commendable progress in reducing income poverty. According to the Department of Statistics Malaysia, the absolute poverty rate stood at 5.1 per cent in 2024, while hardcore poverty declined to just 0.09 per cent. The average Poverty Line Income was estimated at RM2,705 per household per month, suggesting that fewer Malaysians are living below the minimum income threshold.

However, these figures tell only part of the story. Income provides a snapshot of earnings, but it does not reflect whether individuals can access essential services such as healthcare, education, or safe housing. It also does not capture whether households experience stability, dignity, or meaningful opportunities for upward mobility. Two households earning the same income may live entirely different realities, with one being stable and secure while the other remains stretched and constantly adapting to survive. When poverty is measured solely in monetary terms, many of these lived struggles remain invisible.

Poverty as lived experience, not just numbers

As we often emphasise in our research, poverty is not just about what is missing from wallet, but what is missing from a person’s ability to live with dignity, security, and choice.

This perspective highlights the importance of understanding poverty as a lived experience rather than a purely numerical condition. The Multidimensional Poverty Index, developed by the United Nations Development Programme and the Oxford Poverty and Human Development Initiative, offers a more comprehensive framework. Instead of focusing only on income, it evaluates whether individuals have access to key dimensions of well being, including education, health, and living standards.

This broader approach is particularly relevant in Malaysia today. Although income poverty has declined, relative poverty remains significantly higher at 16.7 per cent, based on a threshold of RM3,509 per month. This suggests that many households are living below what is considered a reasonable standard of living, even if they are not classified as poor under traditional measures. In other words, a growing number of Malaysians are not poor by definition, but are far from secure in reality.

The emerging reality: vulnerability above the poverty line

Perhaps the most pressing issue today is not extreme poverty, but vulnerability among those just above it. The data reveals a clear disparity between urban and rural experiences, with urban poverty recorded at 3.7 per cent and rural poverty at 9.9 per cent in 2024. While poverty remains more visible in rural areas, urban households are increasingly experiencing hidden forms of financial strain driven by rising living costs.

For many individuals, especially young working adults, earning slightly above the poverty line does not necessarily translate into economic security. A significant portion of income may be spent on rent, leaving little room for savings. Long commuting hours, limited access to affordable healthcare, and the inability to build financial resilience are common challenges. From a statistical perspective, these individuals are not considered poor, yet their lived experiences suggest otherwise. This raises an important question of whether we are measuring poverty accurately or simply measuring what is easiest to quantify.

Reframing poverty is not merely an academic exercise, but carries important implications for policy and practice. When poverty is defined solely in terms of income, assistance programmes may fail to reach those who are most vulnerable, particularly individuals who fall just above eligibility thresholds. At the same time, structural challenges such as housing affordability, healthcare access, and education quality may remain insufficiently addressed.

Adopting a multidimensional perspective allows for a more nuanced understanding of deprivation and enables the design of targeted and evidence based interventions. More importantly, it shifts the focus from short term financial relief to long term well being and resilience. In doing so, it restores the human dimension of poverty and ensures that policy responses are grounded not only in numbers, but also in lived realities.

Ultimately, poverty is not just about how little one earns, but about how limited one’s choices are. It reflects the inability to access opportunities, to withstand economic shocks, and to move forward with confidence. It is a condition marked by constant compromise, even among those who may appear economically stable on paper.

As Malaysia continues its development journey, the challenge is no longer simply to reduce poverty rates, but to understand poverty more honestly and measure it more meaningfully. If we continue to rely solely on income based definitions, we may succeed in lowering the numbers, yet fail to improve the lives behind them. In the end, it is those lived experiences that should matter most.

* Dr Nik Zirwatul Fatihah is the Research Fellow Post Doctorate at the Ungku Aziz Centre for Development Studies (UAC), Universiti Malaya, and can be reached at (nikzirwatul@um.edu.my). Shuhaida Salleh is the Doctoral candidate at Universiti Sains Islam Malaysia and can be reached at (shuhaida.angkasa@gmail.com)

** This is the personal opinion of the writer or publication and does not necessarily represent the views of Malay Mail.