Malaysia has successfully reduced its national incidence of absolute poverty to 5.1 per cent in 2024, down from the last recorded figure, according to the latest data released by the Department of Statistics Malaysia (DOSM). The positive trend in absolute poverty reduction was observed across urban and rural strata and among major ethnic groups.
The DOSM report, based on the revised average Poverty Line Income (PLI) of RM2,705 (up from RM2,589 in 2022), confirms that fewer Malaysian households are falling below the minimum income required to meet basic needs. The average Food PLI for 2024 was set at RM1,236.
Poverty Declines Across Strata and Ethnic Groups
Improvements were seen in both urban and rural areas, signaling broad progress in poverty alleviation efforts:
Urban Poverty fell from 4.5 per cent in 2022 to 3.7 per cent in 2024.
Rural Poverty, while still significantly higher, declined from 12.0 per cent to 10.0 per cent.
The fight against hardcore poverty (defined as households earning below the Food PLI) shows near-total eradication across the Peninsular, with incidences ranging between 0.0 per cent and 0.1 per cent in most states. However, Sabah remains an outlier, recording a hardcore poverty incidence of 0.7 per cent.
The data also highlighted improved outcomes across ethnic lines:
Poverty incidence among the Bumiputera community decreased from 7.9 per cent (2022) to 6.6 per cent.
The rate for the Indian community saw a sharp reduction from 5.4 per cent (2022) to 3.1 per cent.
Poverty among the Chinese community continued its downward trend, falling to 1.5 per cent (from 1.9 per cent in 2019).
Despite national improvements, significant regional disparities persist. The state of Sabah recorded the highest overall poverty incidence at 17.7 per cent, indicating deep-seated economic challenges in the region. Kelantan followed with the second-highest rate at 11.5 per cent.
While absolute poverty has decreased, the report points to a worrying challenge regarding income inequality, as measured by relative poverty.
Relative poverty, defined as households earning below half of the median gross household income, saw its rate slightly increase from 16.6 per cent in 2022 to 16.7 per cent in 2024.
The Relative Poverty Line itself has also risen significantly to RM3,509 (up from RM3,169 in 2022). This increase suggests that while the poorest are moving above the absolute minimum, the gap between the middle class (median earners) and the lower-income groups is either widening or stagnating, a key concern for policymakers aiming for a more equitable distribution of wealth.
