Poverty is not to be inherited

Sunday January 10, 2010
Poverty is not to be inherited
At Your Service
By DATUK SHUKRY MOHD SALLEH

Malaysia believes in providing balanced development to all citizens. This is to maintain social harmony and political stability. Only then can the economic fundamentals be attained and growth with balanced distribution achieved.
Malaysia is way ahead in meeting the target of the Millennium Development Goals to halve poverty incidence.
Under the economic stimulus packages (PRE I and PRE II), priority was given to people-centric programmes. Elements for assistance for the most affected groups are made easily accessible, such as funds and licences to start new ventures into business.
For the past three and a half decades, poverty rates have declined dramatically.
Since the 1970s, Malaysia has reduced the poverty of nearly half the population (49.6%). The incidence of poverty declined from 5.7% in 2004 to 3.6% in 2007. The incidence of urban poverty decreased from 2.5% in 2004 to 2.0% in 2007 while in rural areas, it declined from 11.9% to 7.1%.
The target of the 9th Malaysia Plan (2006-2010) is to further reduce the incidence of poverty to 2.8% by 2010 and totally eradicate hardcore poor families.
The number of poor households dropped from 311,300 to 209,000 (33%) during the corresponding period. The decline was due to both positive growth and the implementation of various poverty eradication programmes.
Urban household incomes increased at 3.3% per annum from RM3,956 in 2004 to RM4,356 in 2007 while the corresponding rural household income increased at 6.8% from RM1,875 to RM2,283.
Mean household income has increased from RM3,249/month in 2004 to RM3,686/month in 2007, registering an average annual growth of 4.3%.
The higher growth rate of income among rural households was mainly due to better commodity prices, particularly rubber and palm oil.
Malaysia has conducted a census and registered poor households and developed a common user data bank on poverty called eKasih.
The Implementation Coor¬dination Unit (ICU) of the Prime Minister’s Department coordinates all inter-Ministry and agency poverty eradication programmes.
eKasih provides standard and uniform interpretation of Poverty Line Income (PLI) and profiling of poor families.
The thrust of poverty eradication strategies focuses on eradicating hardcore poverty and sustaining them with social safety net programmes.
In addressing these issues, groups are categorised into two strata – urban and rural.
Common PLI with the number of members of household, age groups and gender will determine the per capita poverty line income within different strata were developed and applied.
Each and every member of a household has their own per capita income based on age, gender and special nutrient requirement based on calory intake to sustain a healthy and productive life.
People’s Housing Programme (PPR) run by the Ministry of Housing and Local Authorities (KPKT) rents houses to target groups for a monthly rental of RM124.00.
Housing programmes are undertaken by both the public and private sectors.
The private sector is encouraged to build more low and low-medium-cost houses in their mixed-development projects while the public sector concentrates on building low-cost houses in urban and rural areas. Focus is also given to building more low-cost units for lower income groups.
Housing Assistance Programme (PBR) is also provided to the poor in rural areas mainly by the Ministry of Rural and Regional Development (KKLW).
In 2006, 2,136 hardcore poor households in rural areas were provided home reconstruction assistance, which benefited 10,680 household members.
In 2007, housing assistance was provided to 1,942 hardcore poor households.
The social safety net programme of the Ministry of Woman, Family and Community Development (KPWKM) focuses on assistance for vulnerable groups such as the aged, disabled, single parents and disaster victims.
Incentives are provided to encourage these groups for their right to development.
Income generating projects had been a concern of the Government especially in rural areas.
In addressing these issues, the Ministry of Agriculture and Agro-based Industry (MOA) provides support with the implementation, networking, management and marketing services for the poor.
Initiatives have been taken to boost women’s participation in business through the creation of funds for entrepreneurs, especially so in the micro-credit programme implemented by Amanah Ikhtiar Malaysia (AIM) where almost 100% of the borrowers are women.
As for the private sector, incentives deductable from corporate tax are given to centres established within the workplace.
Corporate Social Responsibility (CSR) from the private sector contributed to the whole mechanism.
Malaysia is home to a number of indigenous groups.
In line with this, comprehensive policies and strategies have been created for the development of indigenous groups focussing on uplifting their quality of life.
The Ministry of Education had extended various forms of assistance to these communities which includes school uniforms, bags, books, school fees and transportation.
These measures have encouraged students to attend school and hence, improve academic excellence.
The Government also provides clean water to these communities through a gravity-feed system as an alternative supply. The Department of Agriculture provides input and agricultural extension services.
These services have increased productivity and hence, they are able to produce sufficient food for their own consumption and income.
Poverty eradication is an ongoing vision and effort. It is an effort which must be shared and led both by the private and public sector.
Kemiskinan bukan untuk diwarisi. (Poverty is not to be inherited).