Abstract
Similar to other countries, Malaysia is also affected by the social and economic process of urbanization leading to various concerns, particularly among the urban poor. This conceptual literature review draws on the theoretical framework of absolute poverty, relative poverty, and causal attributions in defining and explaining poverty in urban areas. Psychological and social well-being are known as significant aspects of an individual’s life. Studies conducted internationally and locally have indicated that several factors of psychological well-being such as mental health, financial constraints, and housing vulnerability, contributes to poor psychological well-being of the urban poor. Additionally, previous research has highlighted that the social well-being of urbanites is impacted due to factors such as social exclusion and lack of social support. However, further studies in Malaysia are needed to emphasize different dimensions of individual psychological and social well-being, such as personal growth, autonomy, social contribution, and social coherence.