An Analysis on the Application of Poverty Line Income and Had Kifayah for Measurement of Poverty Indicator

Abstract

When the poverty line income (PLI) utilised only gauges poverty through the income dimension, the reported state of poverty in Malaysia is deemed unrealistic. Although the national PLI has climbed from RM 980 in 2005 to RM 2,208 in 2019, numerous other factors must also be considered to describe the true extent of poverty in the nation. The PLI is still crucial for figuring out who qualifies for aid, though. So, the purpose of this article is to examine how to measure poverty from both a traditional and an Islamic standpoint. This study employs a qualitative methodology that includes strategies for gathering data through documentation and library research. This study use a descriptive approach method for analysis. The gathered information is then examined and clarified. This study demonstrated that the key factor used to determine poverty, namely income, is the same when assessing poverty from both perspectives. The multidimensional poverty index is also used to examine various aspects of poverty more comprehensively.