Selangor is considering adopting a "decent living standard" benchmark to better assess financial hardship among its residents, moving beyond the traditional poverty line metric. The state aims to use this new standard to refine financial aid, entrepreneurship support, and other assistance programs.
Mentri Besar Datuk Seri Amirudin Shari outlined the proposal during the Selangor 2027 Budget engagement session held at the Selangor International Trade Centre in Shah Alam. He explained that the benchmark could include multiple tiers to address variations in living costs across different localities within the state.
Under the First Selangor Plan, the state has successfully reduced hardcore poverty to below 1% and brought relative poverty down to single-digit levels. However, Amirudin noted that these statistics do not fully capture the financial challenges faced by many residents. "In reality, on the ground and in many places, people feel they are no longer able to attain a dignified standard of living or are living in hardship," he said.
Adopting a higher benchmark reflects a more rigorous standard of living but could lead to increased financial commitments from the state government. Amirudin acknowledged that this approach might not align with short-term political interests but emphasized the responsibility of addressing underlying issues rather than seeking popularity.
The revised measurement framework is also expected to influence the state’s support strategies for Orang Asli communities, whose needs extend beyond income and employment. The state is exploring initiatives such as tuition programs for Orang Asli children and broadening educational aid to support students beyond university entrance.
Demographic changes, including an aging population driven by longer life expectancy and lower birth rates, also present challenges. With most residents employed in the private sector, the state recognizes that caregiving support cannot be managed solely through government agencies or state-linked companies. Instead, a comprehensive support system is being considered, encompassing financial aid, caregiver training, and infrastructure development to relieve working-age adults who care for both children and elderly family members.
The Selangor 2027 Budget engagement session featured focus group discussions on a range of social and economic issues, including well-being, poverty eradication, Orang Asli affairs, entrepreneurship, the creative economy, agriculture, and food security. The state government seeks to incorporate these considerations into its planning to better address the evolving needs of Selangor’s population.