MEASUREMENT OF POVERTY INDICATOR: POVERTY LINE INCOME VIS-À-VIS HAD KIFAYAH

Abstract

The reported poverty situation in Malaysia is described as unrealistic when the poverty line income (PLI) used only measures poverty through the income dimension. At the same time, many other dimensions need to be taken into account to describe the actual poverty in the country, even though the national PLI has increased from RM 980 in 2005 to RM 2,208 in 2019. However, the PLI is still important to determine who is eligible for assistance. Thus, this article aims to discuss the methods of determining poverty from conventional and Islamic perspectives. This study uses a qualitative approach that involves data collection methods by documentation and library research. In analysing, this study uses a descriptive approach method. The data collected is then analysed and clarified. This study found that the assessment of poverty according to both perspectives is the same, where the income aspect is the main criterion in determining poverty. At the same time, the multidimensional poverty index is used to look at other dimensions of poverty more holistically.