Developing Digital Capital Index: Case study of Hardcore Poor Household in Perlis

Abstract

This paper aims to construct a Digital Capital Index (DCI) among the hardcore poverty population in Perlis. This study utilize data from face-to-face surveys conducted with 315 households participating in the Keluarga Malaysia Hardcore Poverty Eradication Programme
(BMTKM) across three parliamentary constituencies—Kangar, Arau, and Padang Besar—the study employs Principal Component Analysis (PCA) to develop the DCI, while crosstab analysis is used to examine the relationship between the index with income and various occupational groups among head of household. Results reveal that the average score for digital capital index among the hardcore poor in Perlis is a moderate level. Further analysis shows that gender and rural residency significantly influence digital capital levels. The findings underscore the need for targeted government interventions, such as localized digital literacy programs and improved digital infrastructure, to bridge the digital divide and enhance economic opportunities for the hardcore poor. The study contributes to policy discussions on poverty reduction by demonstrating the critical role of digital capital in alleviating poverty and economic disparities.