The Role of Assets in the Enhancement of Households’ Income: A Study of Poverty Alleviation among Rural Communities of Kelantan and Terengganu

  •  Senadjki Abdelhak    
  •  Jamalludin Sulaiman    
  •  Saidatulakmal Mohd    


This paper aims to examine the role of assets and entitlements on the enhancement of farmers’ income. Using a structured socio-economic questionnaire, 302 randomly selected farmers in both Kelantan and Terengganu states were tested. To answer the study’s objectives, one way ANOVA test was carried out and tested. The results indicated that access to land, fertilizers, tractors, and health facilities, quality of housing, market, and livestock have significant positive impact on farmers’ wellbeing. Access to irrigation and having savings (at banks and/or homes) were found to have significant negative impact on farmers’ monthly income. Education and association memberships are not essential factors that might contribute to the enhancement of farmers’ livelihood. Investing in productive assets was found to be more effective rather than safekeeping the money in a bank or at home. However, households and farmers deal with their own assets and entitlement differently. As a result, assets are found to decrease the income of farmers partially due to the farmers’ decision-making strategies which seems to be poor and inadequate. Therefore, incorporating psychological perspective such as farmers’ behaviours and perceptions are utmost important in order to better understand the complex mechanisms underlying the farmers who are falling in poverty trap.

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