| Summary: | Despite Malaysia’s tremendous economic growth and remarkable achievement in poverty
reduction for the nation, pockets of poverty remain in certain regions. Pockets of poverty
could be analysed using micro data when macro data is unable to provide a clear
understanding on the existence of poverty. This study assesses the pockets of poverty in the
Northern States of Malaysia. Northern States of Malaysia consist of Perlis, Kedah, Penang
and Perak. The objectives of this paper are twofold: to identify pockets of poverty in the
Northern States of Malaysia using household income data and to determine the factors that
affect these pockets of poverty. Pockets of poverty in this region are investigated among
strata, ethnic groups, income level and education. For this purpose, the National Poverty Line
Income (PLI) is determined to specify the poor. Logistic probability function is estimated to
assess factors that influenced poverty in the Northern States of Malaysia. This study uses the
Household Income Survey (HIS) data for 2009 and 2012. From data analysis, it could be
concluded that pockets of poverty exist among elderly, women, Bumiputera and those living
in the rural areas. Logistic probability analysis indicates that variables that are statistically
significant in influencing poverty are age, gender, location, education level, Chinese (ethnic
group) and married (marital status). These findings are vital to develop appropriate policy
orientation in targeting the correct group in solving poverty.
|
|---|