Published by The Edge
Nov 24, 2008
With the economic slowdown eating into household incomes, the number of people who will fall below the poverty line is expected to increase sharply.
But how the poverty line is determined is in itself a subject for debate. There are different points of view on this, with some economists saying it is currently too low and therefore understates the number of people who are poor.
Under the Ninth Malaysia Plan (9MP), the urban poverty line income (PLI) was set at RM687 per household per month. However,this figure has been disputed by many as too low because of the high cost of urban living. For this reason, they argue that the computation should be revised.
“The government numbers on poverty are understated,??? says Lim Teck Ghee, chief executive of the Centre for Policy Initiatives, in an interview with The Edge.
“With the sudden rise in inflation, the wage growth rate is not reflective of the cost of living. The estimate is that one-third of urban households are living in poverty.???
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