Poverty can be divided into two that are absolute poverty and relative poverty. Absolute poverty is a dynamic concept while relative poverty is a concept of income inequality.
In order to measure the poverty, absolute poverty will calculate the poverty rate that is the percentage of population or households which income below the poverty line. Normally we see it from the gross monthly income that is insufficient to purchase the minimum requirements of household as measured by the level of the minimum expenditure or income poverty line (PGK)
Relative poverty is measured by using income disparity ratios of income groups, ethnic groups and rural and urban residents. Another measure of relative poverty that is often used is the percentage of households with income less that half of such median or average income.
According to poverty eradication foundation of Malaysia, in year 2005, Sabah is the country that high in poverty number followed by the East Cost country, Kelantan and Terengganu. Other ranking is Sarawak, Kedah, Perak, Pahang, Perlis, Selangor, Johor, Negeri Sembilan, Melaka and finally Penang.