Abstract: Islamic institutions in Malaysia play a variety of
socioeconomic roles such as poverty alleviation. To perform this role,
these institutions face a major task in identifying the poverty group.
Most of these institutions measure and operationalize poverty from
the monetary perspective using variables such as income, expenditure
or consumption. In practice, most Islamic institutions in Malaysia use
the monetary approach in measuring poverty through the
conventional Poverty Line Income (PLI) method and recently, the
had al kifayah (HAK) method using total necessities of a household
from an Islamic perspective. The objective of this paper is to present
the PLI and also the HAK method. This micro-data study would
highlight the similarities and differences of both the methods.A
survey aided by a structured questionnaire was carried out on 260
selected head of households in the state of Selangor. The paper
highlights several demographic factors that are associated with the
three monetary indicators in the study, namely income, PLI and
HAK. In addition, the study found that these monetary variables are
significantly related with each other.