Exploring the drivers of poverty line income in Malaysia / Nurhani Elisya Zainal ... [et al.]

Back in 1977, Malaysia was a largely agrarian lowermiddle- income country, with a monthly gross national income (GNI) per capita of 200 Malaysian ringgit (MYR) at the time. That was the year that Malaysia set its first official monetary poverty line, estimating that a household required the equivalent of approximately MYR 50 per person each month to achieve a basic standard of living. Since then, Malaysia has prospered and its GNI per capita has risen to MYR 3,650 per month, an increase of 324 percent after adjusting for inflation. However, the inflation-adjusted poverty line has only increased 15 percent over the same time period. This research was conducted to study the determinants of the poverty line income in Malaysia. The determinants related are unemployment, income inequality and inflation in Malaysia. Accordingly, research used secondary data starting 2009 to 2019 from Thomson Reuters Datastream, Statista, and Department of Statistics Malaysia (DOSM). Eviews software was used to analyze the relationships of the determinants on the poverty line income. Results illustrated that inflation and income inequality have a positive significant relationship on the poverty line index. Recommendations were made in terms of education policy, financial aid, assistance from the government and recommendations for future research upgrade the standard and quality of living among the poor and lower-income group of people in Malaysia.