Malaysia Strengthens National Multidimensional Poverty Index to Enhance Targeted Intervention and Inclusive Development
June 29, 2026
Yang Berhormat Tuan Haji Akmal Nasrullah Haji Mohd Nasir, Minister of Economy (right), delivered a token of appreciation to Edward Vrkić, UNDP Resident Representative for Malaysia, Singapore and Brunei Darussalam, in recognition of the strong partnership to strengthen Malaysia's poverty measurement framework.
KUALA LUMPUR, 29 June 2026 – Malaysia is reviewing its National Multidimensional Poverty Index (NMPI) to ensure poverty and vulnerability are measured more accurately, beyond income alone, and to support more targeted public policies, social protection and development spending.
Members of Parliament were briefed today by the Minister of Economy, YB Tuan Haji Akmal Nasrullah Haji Mohd Nasir, and senior UNDP officials on the revised NMPI. Led by the Ministry of Economy, the revision is being undertaken with technical assistance from the United Nations Development Programme (UNDP) and the Oxford Poverty and Human Development Initiative (OPHI), University of Oxford. It will help ensure Malaysia's national poverty measurement framework reflects the country's evolving development priorities and supports implementation of the Thirteenth Malaysia Plan (13MP).
Malaysia first introduced NMPI under the Eleventh Malaysia Plan, 2016 - 2020. Unlike conventional poverty measures based primarily on income, the Malaysia MPI also captures multiple dimensions of deprivation, including education, health, living standards and access to essential services. Based on HIES by the Department of Statistics Malaysia (DOSM), MPI has improved to 0.0051 in 2024 from 0.0110 in 2019. This provides a more complete picture of vulnerability, helping Government better target social protection, public investment and development programmes.
The revised dimensions and indicators in the NMPI will strengthen the Government's ability to identify communities experiencing the greatest deprivation, monitor development outcomes and direct resources where they will have the greatest impact.
Minister of Economy YB Tuan Haji Akmal Nasrullah Haji Mohd Nasir said effective policymaking requires a deeper understanding of the realities faced by Malaysians beyond conventional socioeconomic indicators.
“The National MPI is a policy tool that will help the Government identify overlapping deprivations and design more integrated solutions, rather than addressing poverty in a fragmented way or through a single dimension alone. This will support our efforts to deliver inclusive growth whose benefits are shared across every segment of society.”
“As the nation advances its inclusive development, the way we measure poverty must also evolve, so that policies, programmes and allocations can be targeted more accurately to the realities people face. A strengthened MPI will help ensure policy and programme interventions that are more precise, evidence-based and responsive, whether in closing gaps in basic services, strengthening social protection or supporting households and vulnerable groups.”
UNDP Resident Representative to Malaysia, Singapore and Brunei Darussalam, Edward Vrkić, welcomed Malaysia's continued leadership in advancing innovative approaches to development measurement.
"As countries become more prosperous, development challenges become increasingly complex. Income remains important, but it does not always capture the range of barriers that prevent people from reaching their full potential."
"The National MPI provides policymakers with deeper insights into the factors affecting education outcomes, health, living conditions and access to opportunities. This supports more effective policymaking, stronger human capital development and better outcomes for communities across the country."
Participants discussed how the NMPI can inform parliamentary debate, constituency planning, programme monitoring and budget decisions, drawing on international experience in integrating multidimensional poverty measures into national development planning.
The Ministry of Economy reaffirmed its commitment to embedding the National MPI as a core tool for policy design, resource allocation and development planning, in partnership with various stakeholders under the “whole-of-nation” approach to improve the lives of all Malaysians under the Thirteenth Malaysia Plan, 2026 - 2030.