Scribd Logo
Upload

Welcome to Scribd!

  • 28 views

    Equity and Poverty - Global - POVEQ - MYS

    Uploaded by

    al fateh
    Malaysia has seen significant reductions in poverty and inequality in recent years. While less than 1% of households live below the national poverty line, about 3% remain below the upper middle income poverty line of $5.50 per day. However, Malaysia's economy is projected to contract in 2020 due to COVID-19, which could increase poverty rates. Growth in incomes of the bottom 40% has outpaced overall growth, contributing to declines in inequality as measured by the Gini index.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Equity and Poverty - Global - POVEQ - MYS

    Uploaded by

    al fateh
    28 views2 pages
    Malaysia has seen significant reductions in poverty and inequality in recent years. While less than 1% of households live below the national poverty line, about 3% remain below the upper middle income poverty line of $5.50 per day. However, Malaysia's economy is projected to contract in 2020 due to COVID-19, which could increase poverty rates. Growth in incomes of the bottom 40% has outpaced overall growth, contributing to declines in inequality as measured by the Gini index.

    Original Title

    Equity and Poverty_Global_POVEQ_MYS

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Malaysia has seen significant reductions in poverty and inequality in recent years. While less than 1% of households live below the national poverty line, about 3% remain below the upper middle income poverty line of $5.50 per day. However, Malaysia's economy is projected to contract in 2020 due to COVID-19, which could increase poverty rates. Growth in incomes of the bottom 40% has outpaced overall growth, contributing to declines in inequality as measured by the Gini index.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    28 views2 pages

    Equity and Poverty - Global - POVEQ - MYS

    Uploaded by

    al fateh
    Malaysia has seen significant reductions in poverty and inequality in recent years. While less than 1% of households live below the national poverty line, about 3% remain below the upper middle income poverty line of $5.50 per day. However, Malaysia's economy is projected to contract in 2020 due to COVID-19, which could increase poverty rates. Growth in incomes of the bottom 40% has outpaced overall growth, contributing to declines in inequality as measured by the Gini index.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 2

    Poverty & Equity Brief

    East Asia & Pacific

    Malaysia
    April 2020

    Malaysia is an upper middle income country with a GNI per capita of nearly US$ 31,000 (2011 PPP). The national poverty line is
    approximately US$ 4.00 (2011 PPP) per person per day, and has not increased in real terms since 1977, despite the country's
    rapid economic development. As a result, only 0.4 percent of households live below the current national poverty line. At the
    WBG's Upper Middle Income Class poverty line of US$ 5.50 (2011 PPP), poverty has declined from 16.7 percent of the
    population in 2008 to 2.7 percent in 2015. Malaysia introduced a national multidimensional poverty index (MPI) in 2015, and by
    that measure 0.9 percent of Malaysian households were estimated to be multidimensionally poor in 2015. Based on the World
    Bank's Multidimensional Poverty Measure, only 0.2 percent of Malaysians were multidimensionally poor as of 2015.

    Annual growth of the bottom 40 percent's mean household income per capita was 8.3 percent from 2011 to 2015, which was
    2.4 percentage points faster than the corresponding growth for the country's total population. Median household income per
    capita grew at 7.1 percent per year, also outpacing the growth in mean income. The inclusive pattern of growth has led to
    significant reductions in relative income inequality, with relative Gini index decreasing from 43.9 in 2011 to 41.0 by 2015. Even
    so, public discourse and policy statements have tended to focus on the continued increase in absolute income gaps, as the
    absolute Gini index has increased by 17 percent from 2011 to 2015.

    Malaysia's economy is projected to contract in 2020 because of the COVID-19 pandemic and associated economic disruptions,
    with GDP forecast to decline in the range of 0.1 to 4.6 percent. As a result, the poverty rate at the US$ 5.50 (2011 PPP) poverty

    Number of Poor Rate


    POVERTY (thousand) (%)
    Period

    National Poverty Line 122.9 0.4 2015


    International Poverty Line
    3.1 0.0 2015
    3.3 in Malaysian ringgit (2015) or US$1.90 (2011 PPP) per day per capita
    Lower Middle Income Class Poverty Line
    71.0 0.2 2015
    5.6 in Malaysian ringgit (2015) or US$3.20 (2011 PPP) per day per capita
    Upper Middle Income Class Poverty Line
    810.9 2.7 2015
    9.6 in Malaysian ringgit (2015) or US$5.50 (2011 PPP) per day per capita

    Multidimentional Poverty Measure 0.2 2015


    SHARED PROSPERITY
    Annualized Income Growth per capita of the bottom 40 percent 8.30 2011-2015
    INEQUALITY
    Gini Index 41.0 2015
    Shared Prosperity Premium = Growth of the bottom 40 - Average Growth 2.35 2011-2015
    GROWTH
    Annualized GDP per capita growth 3.88 2011-2015
    Annualized Income Growth per capita from Household Survey 5.95 2011-2015
    MEDIAN INCOME
    Growth of the annual median income/consumption per capita 7.14 2011-2015
    Sources: WDI for GDP, National Statistical Offices for national poverty rates, POVCALNET as of Feburary 2020, and Global Monitoring Database for the rest.

    Poverty Economist: Kenneth Simler


    POVERTY HEADCOUNT RATE, 2008-2015 INEQUALITY TRENDS, 2008-2015
    Gini Index
    50.0
    18 30
    45.0
    16
    25 40.0
    14
    35.0
    12 20
    30.0
    10
    15 25.0
    8
    20.0
    6 10 15.0
    4 10.0
    5
    2 5.0

    0 0 0.0
    2008 2010 2012 2014 2008 2010 2012 2014

    Poverty International Poverty Line Lower Middle IC Line GDP per


    rate Upper Middle IC Line National Poverty Line capita
    (%) GDP (Thousand)

    Source: World Bank using HIS/EAPPOV/GMD Source: World Bank using HIS/EAPPOV/GMD

    KEY INDICATORS
    Upper Middle Income line(%) Relative group (%)
    Distribution among groups: 2015 Multidimensional Poverty Measures (% of people): 2015
    Non-Poor Poor Bottom 40 Top 60
    Urban population 99 1 33 67 Monetary poverty (Income)
    Rural population 93 7 64 36 Daily income less than US$1.90 per person 0.0
    Males 97 3 40 60 Education
    Females 97 3 40 60 At least one school-aged child is not enrolled in school 0.6
    0 to 14 years old 95 5 52 48 No adult has completed primary education 0.7
    15 to 64 years old 98 2 36 64 Access to basic infrastructure
    65 and older 99 1 33 67 No access to limited-standard drinking water 1.6
    Without education (16+) 95 5 54 46 No access to limited-standard sanitation 13.2
    Primary education (16+) 97 3 49 51 No access to electricity 0.6
    Secondary education (16+) 98 2 40 60
    Tertiary/post-secondary education (16+) 99 1 15 85

    Source: World Bank using HIS/EAPPOV/GMD Source: World Bank using HIS/EAPPOV/GMD
    Notes: N/A missing value, N/A* value removed due to less than 30 observations

    POVERTY DATA AND METHODOLOGY


    The Department of Statistics Malaysia (DOSM) produces national poverty estimates. The estimates are income-based, using data from household surveys conducted
    every 2.5 years. Official statistics and results from the 2019 household survey are expected to be released in May 2020. The method roughly follows the Cost of Basic
    Needs methodology, with a food component based on nutritional requirements and a nonfood component based on consumption behavior of poor and near-poor
    households. Tens of thousands of household-specific poverty lines are calculated, tailored to the location (state and rural/urban) and the age and gender composition of
    each surveyed household. Because DOSM's methods sometimes diverge from those commonly used for international comparisons, particularly with regard to
    equivalence scales and weighting, DOSM's published results often differ from those published by the World Bank or other international organizations even when using
    the same primary data. For example, DOSM's published poverty rates refer to the proportion of households—not the more conventional proportion of the
    population—living below the poverty line. Similarly, the official published Gini index uses total household income as the welfare aggregate, without normalization for
    household size or composition, and calculates inequality across households. The resulting Gini index estimates are 2.0 to 2.5 percentage points lower than those
    calculated by the more common approach that uses household income per capita and population weights.

    HARMONIZATION
    The numbers presented in this brief are based on the EAPPOV database. EAPPOV is a database of socio-economic statistics constructed using microdata from household
    surveys in the East Asia and the Pacific (EAP) region and is managed by the East Asia & Pacific Team for Statistical Development (EAPTSD). As of January 2019, the
    collection includes 19 countries and 93 surveys. Harmonized surveys in the EAPPOV database are compiled into 4 modules following Global Monitoring Database (GMD)
    Harmonization guidelines. A subset of the harmonized variables form the basis of the GMD collection, including the welfare aggregate which is used for Global Poverty
    Monitoring. Terms of use of the data adhere to agreements with the original data producers.

    East Asia & Pacific povertydata.worldbank.org


    Malaysia www.worldbank.org/poverty

    You might also like