An urban poverty and income inequality: A demographic cross-section analysis of Malaysia states and districts

Poverty has long been a global concern, with one-fifth of the world’s population experiencing multidimensional poverty. The World Bank emphasizes that poverty reduction is a complex issue requiring sustained and prudent strategies. In Malaysia, significant progress has been made since independence, particularly through the National Economic Policy (NEP) implemented between 1971 and 1990. The NEP fostered economic growth and raised household incomes, substantially lowering poverty levels. Despite these achievements, poverty in Malaysia has evolved into a multidimensional issue, with distinct challenges in rural and urban contexts. Agricultural expansion, including the cultivation of rubber, oil palm, paddy, coconut, and vegetables, was supported by government initiatives through agencies such as FELDA, RISDA, and FELCRA, which provided land and employment opportunities. However, addressing poverty remains difficult due to demographic complexity, ethnic diversity, education gaps, and challenges in data reliability. The government continues its efforts to reduce inequality and legislate policies targeting poverty alleviation. Yet, the persistence of poverty highlights the insufficiency of current measures to fully eradicate the problem. This article focuses on urban poverty among middle-income households (M40) and low-income households (B40), examining how they cope with rising living costs in areas such as housing, food, healthcare, education, and essential services. The study seeks to understand why these groups are disproportionately affected and more likely to experience urban poverty despite ongoing government interventions.