INCIDENCE OF POVERTY IN MALAYSIA (1999, 2007) 1998 2007 URBAN = 3.4% 2.0% RURAL 12.4% 7.1% AVERAGE 8.0% 3.6%

Population below poverty line (%) Country 1997 1998 2002 2007 Malaysia 6.8 8.0 5.1 3.6

POVERTY LINE It is a measure of poverty based on income. It is defined as a minimum level of income that a person is able to meet his/her basic needs – food, shelter, clothing, and basic education as well as health. Poverty lines vary, based on time and place. (It is higher in the urban than rural areas). Each country has its own level of poverty line.

Other Measure of Poverty Line World Bank measure of Purchasing Power Parity (PPP) which is defined as the relative purchasing power of currencies across countries. The value is US$1 a day – 23% of the population in the developing world is poor (extreme poverty). The value of US$2 a day – expected about 40% of the population in the developing world is poor.

Absolute Poverty and Relative Poverty Income RM (1998) 1830 593 B is relatively poor than C Absolute poverty 1/3 of GNP per household C B Poverty Line A Population