A/HRC/44/40/Add.1
16.
Overall, Malaysia has made immense progress on poverty alleviation, but the job
remains incomplete. Under the flawed official poverty line, its national poverty rate fell
from 49 per cent in 1970 to 0.4 per cent in 2016, 21 but its accomplishments remain
impressive even under more realistic measures. 22 As of 2016, 95.5 per cent of households
had access to piped water and 99.9 per cent had access to electricity.23 Average household
income grew by 7.3 per cent annually from 1970 to 2012, with the bottom 40 per cent of
income earners enjoying the highest growth. 24 It remains all the more significant that
despite such accomplishments, a considerable proportion of the country still lives in
poverty.
17.
The Government has a real opportunity to become a true champion of poverty
reduction by improving the lives of many facing hardship and realizing the poverty
eradication ambitions of the new economic policy. The Special Rapporteur met with many
politicians and government officials who were clearly dedicated to improving the wellbeing of the poorest people and marginalized groups. The Government should capitalize on
this goodwill by correcting the narrative around poverty, providing those living in poverty
with the support they need and ensuring that the country’s economic growth is truly
inclusive and benefits the entire population.
II. Poverty measurement
18.
A national poverty measure should enable a sober, contextualized assessment of the
level and nature of poverty, but in Malaysia it has become a way for successive
Governments to declare victory over poverty without having actually achieved it. The
national poverty line bears no relationship to the cost of living, household incomes, or
realities on the ground. It was meaningful in 1970 but real household income has increased
fivefold since then and Malaysia has gone from being a low-income to an upper-middleincome country in that time.25 Apart from being inconsistent with almost all independent
analysis, the artificially low measure has discouraged research on poverty and distorted the
targeting of existing social support programmes.
19.
The result is that “Malaysians feel a sense of disconnect with official poverty
statistics. They feel that their incomes are barely enough to make ends meet and yet, by
official count, we have almost no poverty in the country.” 26 In 2018, nearly 30 per cent of
Malaysians felt that they did not have enough money for food (double the number in 2012)
and 23 per cent reported having inadequate money for shelter. 27 Roughly half of all
households did not have sufficient savings to cope with an unforeseen financial shock in
201928 and as of 2013, 53 per cent of Malaysian households had no financial assets.29
20.
The illusion of poverty eradication has been reinforced through the deliberate
exclusion of vast numbers of people from statistics and analysis in Malaysia. Official
statistics only capture the situation of those with Malaysian citizenship, leaving out millions
of migrants, refugees and asylum seekers, and stateless people, all of whom are
disproportionately affected by poverty.
21
22
23
24
25
26
27
28
29
Economic Planning Unit, Prime Minister’s Department, Eleventh Malaysia Plan 2016–2020:
Anchoring Growth on People (May 2015), p. 21.
For example, an alternative measure proposed by Martin Ravallion, which is tied to mean income,
shows a decline from just over 40 per cent to about 20 per cent between the early 1980s and 2015:
Martin Ravallion, “Is the govt hiding millions of Malaysia’s poor?”
Department of Statistics, Household Income and Basic Amenities Survey Report 2016, p. 36.
United Nations Development Programme (UNDP), Malaysia Human Development Report 2013:
Redesigning an Inclusive Future (2014), p. 34.
Martin Ravallion, “Has Malaysia virtually eliminated poverty?” Economics and Poverty, 21 January
2019.
Khazanah Research Institute, “The absolute vs relative poverty conundrum,” p. 3.
World Bank, Malaysia Economic Monitor, December 2019: Making Ends Meet, p. 63.
Ibid., p. 81.
UNDP, Malaysia Human Development Report 2013: Redesigning an Inclusive Future, p. 49.
5
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