APRIL 9 — According to the World Bank’s September 2017 report on Malaysia, less than 1 per cent of Malaysian households are currently living under extreme poverty.
Further reports suggest that the government’s focus is currently shifting towards addressing the well-being of the poorest bottom 40 per cent of the population.
A common misconception is that income inequality in Malaysia remains high relative to other East Asian countries, but studies conducted from 2009 to 2014 by the Khazanah Research Institute have shown that the average income for a bottom 40 household has seen a growth of 11.9 per cent annually, higher in contrast to the 7.9 per cent growth for the rest of the Malaysian population. Indicating that the low-income families in Malaysia are quickly earning more each year.
The World Bank acknowledges the strategy of the government gradually moving towards more targeted measures to support the impoverished, following the removal of broad-based subsidies.
Other targeted measures include the 1Malaysia initiative, which granted free basic medical services, internet centres for the urban poor, and subsidies at specific provision stores.
In addition, the government also reduced toll rates; subsidised rice, flour, sugar and approved a schooling aid of RM100 per pupil as well as a book voucher scheme of RM250 per person for pre-university students and undergraduates, among others.
Najib and his government have prioritised human resource development and encouraged the poor to acquire the necessary skills and qualifications.
Steadily gaining employment in the expanding modern, high wage sectors of the economy leading large number of workers shifting out of the traditionally low paid rural occupations into better paying modern sector employment.
According to the Department of Statistics Malaysia, the number of persons engaged in professional services in 2015 compared to 2010 showed an annual growth rate of 13.8 per cent per year.
The total salaries and wages paid in 2015 were RM10.1 billion compared to RM4.4 billion in 2010 with annual growth rate of 17.8 per cent annually.
More importantly, all these measures and statistics indicate a continued strategy that minimises the transfer of poverty to the next generation. Quality of life has also been improved through the upgrading or expansion of public services, social amenities and physical infrastructure, with easy accessibility at its core. — Jakarta Globe
* Professor Hoo Ke Ping is an Economic Analyst based in Malaysia.
** This is the personal opinion of the writer or publication and does not necessarily represent the views of Malay Mail.
