Malaysia’s poverty rate continued to decline in 2024, with national data showing improvements across urban and rural households as well as among major ethnic groups. The findings, published by the Department of Statistics Malaysia (DOSM), also indicate a gradual narrowing of income inequality nationwide.

Absolute Poverty Rate Drops To 5.1%

The national incidence of absolute poverty declined to 5.1% in 2024 from 6.2% in 2022. The average Poverty Line Income (PLI), which refers to the minimum monthly income needed to meet basic living costs, rose to RM2,705 compared to RM2,589 in 2022.

Urban poverty decreased from 4.5% to 3.7%, while rural poverty fell from 12.0% to 9.9%. The improvement reflects stronger income growth and continued government initiatives to reduce household vulnerability.

Among major ethnic groups, the Bumiputera recorded a poverty rate of 6.6%, the Indian community 3.2%, and the Chinese community 1.5%. Sabah remained the state with the highest poverty rate at 17.7%, followed by Kelantan at 11.5%, while Putrajaya recorded the lowest at 0.2%.

Hardcore Poverty Nearly Eliminated

Hardcore poverty, referring to households with income below the food poverty line, fell sharply to just 0.09% in 2024. This represents one of Malaysia’s lowest recorded levels in decades.

Most states successfully reduced hardcore poverty to near zero, except for Sabah, which recorded 0.7%. The average national food poverty line stood at RM1,236 per month, compared to RM1,198 in 2022.

Relative Poverty Holds Steady At 16.7%

The relative poverty line, defined as half of the national median household income, rose to RM3,509 in 2024 from RM3,169 in 2022. The overall relative poverty rate remained stable at 16.7%.

DOSM data show that relative poverty was higher in rural areas at 24.8%, compared to 11.9% in urban areas. This highlights the persistent income and cost-of-living gap between regions.

Income Inequality Continues To Narrow

The Gini coefficient, Malaysia’s main measure of income inequality, declined from 0.404 in 2022 to 0.390 in 2024, the lowest level since before the pandemic.

Urban inequality improved to 0.378 from 0.393, while rural inequality narrowed to 0.344 from 0.351. Across ethnic groups, income distribution became more balanced, with the gap between Chinese and Bumiputera incomes improving to a ratio of 1:0.72, compared to 1:0.71 two years earlier.

Economists note that the improvement in the Gini coefficient reflects a stronger labour market and targeted policy measures that have supported lower- and middle-income households.

Progress With Persistent Regional Gaps

Although Malaysia continues to make progress in reducing poverty and inequality, regional disparities remain significant. Rural households, particularly in Sabah and Kelantan, still face higher poverty levels due to limited job diversity, infrastructure gaps, and higher logistics costs.

The latest findings suggest that while broad-based growth and social assistance programmes have lifted many households above the poverty line, sustained improvements will depend on creating more inclusive economic opportunities, especially outside major cities.

A Step Closer To Shared Prosperity

Overall, the 2024 data reflect Malaysia’s continued progress toward its shared prosperity goals. Poverty and inequality indicators have improved across most dimensions, signalling that policy interventions and economic recovery are taking effect.

However, progress remains uneven, with rural and lower-income groups still requiring focused support to sustain these gains.

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• TAGS:
• Absolute Poverty
• Department of Statistics Malaysia
• DOSM
• Hardcore Poverty
• Income Inequality
• Poverty Rate
• Prosperity