Livelihood Assets Index: A Case Study in Rural Area, Kedah, Malaysia

Abstract

Livelihood assets refer to the resource base of the community and the different categories of households. There are five different types of assets available to locals: human, natural, financial, physical, and social. Livelihood assets are considered to improve the standard of living and quality of life of an individual or household, which largely influences the status of well-being. The objective of this study is to construct a Livelihood Assets Index for low-income households in Kedah, Malaysia. To achieve this objective, a total of 200 respondents were selected from the low-income household groups in Baling, Alor Setar, Padang Terap, and Sik, Kedah. The study shows that social and physical assets indexes have a medium higher. Financial assets, on the other hand, are in the middle range index. Overall, the study shows that the index of livelihood assets in this group is in the middle range. Policymakers directly involved in rural development would benefit from this study. The study also suggests solutions to improve the long-term livelihoods of low-income households in rural areas