Journal of Enterprise and Business Intelligence


Measuring Multidimency Poverty Method

Muhammad Asim and Huey Fang Pasha, University Marketing, Admissions and Communications, Monash University, Malaysia.


Journal of Enterprise and Business Intelligence

Received On : 22 June 2021

Revised On : 14 August 2021

Accepted On : 20 October 2021

Published On : 05 January 2022

Volume 02, Issue 01

Pages : 033-043


Abstract


The calculation of the poverty rate in Malaysia is measured based on the Poverty Line Income (PGK). Most recently, in 2019, PGK was reviewed. The reassessment of this measurement is in line with current developments as well as Malaysia's developmenttowards developed countries. But to what extent does the poverty measure using PGK reflect the real state of poverty for a household? To overcome poverty, we need to know who is poor, and in what dimension they are poor.To take these into account, we used the multidimensional poverty index measurement method or Multidimensional Poverty Index (MPI) as one of the alternatives to replace poverty measurement using the income method. This multidimensional poverty measurement is more of a measure to identify "who is poor". Apart from calculating the amount of deficiency experienced by a household, this study also conducts two forms of analysis, namely weightlessMPI analysis and MPI analysis with the same weighting. This study uses primary data obtained from face-to-face interviews on 378 heads of households in Sik District, Kedah, in 2013. Selected respondents are the result of random observations conducted by the National Statistics Department. The findings of the study, when the same weighting value is given for each of the eight dimensions, found that if the poverty line k ≥ 4 is set, 34.66 percent or 131 households are poor in various dimensions. Determining the k ≥ 4 separationline in this weighted analysis does not mean that households are deficient in four dimensions, but that households are deficient by four and more dimensions. The studyfound that the average poverty (A) is 31.36 percent, which means that, among the poor households (131), on average, they suffer from a deficit of 31.36 percent of the total poverty dimension (22 dimensions). MPI, the adjusted poverty rate (Mo), is 0.1086, which means that the depth of poor households from the set separation line is 10.86 percent or 11 out of 100 depths or in other words the depth of poverty of households experiencing a deficit from the overall shortfall is 10.86 percent.


Keywords


Poverty; Multidimensional Poverty; Multidimensional Poverty Index (MPI); Poverty Line Income (PGK); Kedah, Malaysia.


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Cite this article


Muhammad Asim and Huey Fang Pasha, “Measuring Multidimency Poverty Method”, Journal of Enterprise and Business Intelligence, vol.2, no.1, pp. 033-043, January 2022. doi: 10.53759/5181/JEBI202202005.


Copyright


© 2022 Muhammad Asim and Huey Fang Pasha. This is an open access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.