KUALA LUMPUR, Sept 26 — Urban Absolute Poverty in Malaysia Rises to 4.5% Amid Covid-19 Setbacks, KRI Reports

A recent Khazanah Research Institute (KRI) report reveals that absolute poverty among urban households in Malaysia increased to 4.5% in 2022, up from 3.8% in 2019. The report, titled "The State of Households 2024: Households and the Pandemic 2019-2022," highlights how the COVID-19 pandemic reversed prior progress in poverty reduction.

Kuala Lumpur experienced the most significant rise, adding 6,774 households to the poverty statistics, followed by Kuala Muda and Kota Kinabalu. The pandemic severely impacted the incomes of lower-income households, with those earning RM3,000, RM5,000, and RM11,000 seeing modest income growth, while the lowest earners faced declines of up to 40.9%.

The report emphasizes the link between monetary and non-monetary poverty, suggesting that targeted economic policies are essential to address disparities and improve access to basic amenities. It also notes that COVID-19-related EPF withdrawals have widened income inequality, particularly among lower-income contributors.

Additionally, household expenditure as a percentage of income has risen, with urban households experiencing a greater increase than rural ones. Notably, spending on dining out has surged post-pandemic, with nearly half of food expenditure now allocated to meals outside the home.

The report highlights the uneven post-pandemic recovery in digital access and usage, particularly in healthcare digitalization, suggesting the need for a comprehensive, inclusive digital health system in Malaysia.