Determination of poverty using multi-faceted measures: Evidence from zakat applicants
DOI:
https://doi.org/10.24200/jonus.vol8iss3pp62-86Abstract
Background and Purpose: Poverty is a complex and multidimensional issue, traditionally measured through absolute or relative monetary indicators. While official poverty lines provide a benchmark for policy decisions, they often fail to capture public perceptions of income, welfare, and life satisfaction. Sole reliance on objective measures such as household income or consumption aggregates may overlook key insights into societal needs and preferences. This study aims to bridge this gap by integrating objective and subjective poverty measures to offer a more comprehensive understanding of poverty in Malaysia. Additionally, it examines the incidence of multifaceted poverty among low-income households from the perspective of zakat applicants.
Methodology: Data was collected through surveys and interviews with zakat applicants classified as poor and needy by the State Islamic Religious Council (SIRC) of Melaka, Malaysia. Three poverty measurement approaches were employed: Poverty Line Income (PLI), Haddul Kifayah, and Subjective Poverty Index (SPI).
Findings: The study distinguishes PLI and Haddul Kifayah as objective poverty measures, while SPI represents a subjective measure. The results indicate that different poverty assessment methods yield varying analytical outcomes, necessitating diverse policy responses.
Contributions: By highlighting the disparities between objective and subjective poverty assessments, this study brings to the fore the need for tailored poverty alleviation strategies that address both economic deprivation and individual perceptions of well-being.
Keywords: Multifaceted poverty, objective poverty, subjective poverty, poverty measurement, zakat recipients.
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