Construction of deprivation index in the case of Setiu Wetlands, Malaysia and its relationship with income: statistical analysis

Income was usually used to monitor poverty all over the world. But when measure poverty only based on income, it may incorrectly assess whether or not a person or a household are actually experiencing a poverty level standard of living. So the objective of this study to construct the deprivation index based on the geographical and material of basic need factors in Setiu Wetlands, Peninsular Malaysia and to investigate the relationship of this index with incomes level in order to monitor poverty incidences. There are six factors were used to construct the deprivation index. The result from factor analysis showed that these six factors can be divided into three categories. On average, a household with lower a value of deprivation index known as a deprived household. It was found that there is some not poor household category having lower deprivation index. It means, that household still cannot afford for having sufficient needs in their life. This is remarkably important as the evaluation could ease the allocation of assistance and help to the needs in specific areas. Prior attention and resource allocation should be placed in the more deprived areas in order to improve their quality of life. Determination of PGK also needs to be revised because the existing PGK value seem does not appear to reflect the real situation of the poverty line