SECOND ASEAN PLUS THREE HIGH-LEVEL SEMINAR ON POVERTY ALLEVIATION 25 TH -29 th SEPTEMBER 2006

11

SECOND ASEAN PLUS THREE SECOND ASEAN PLUS THREE HIGH-LEVEL SEMINAR ON HIGH-LEVEL SEMINAR ON POVERTY ALLEVIATIONPOVERTY ALLEVIATION

2525THTH -29 -29thth SEPTEMBER 2006 SEPTEMBER 2006

THE MINISTRY OF RURAL AND REGIONAL DEVELOPMENT (MRRD)THE MINISTRY OF RURAL AND REGIONAL DEVELOPMENT (MRRD)

MALAYSIAMALAYSIA

22

POVERTY ALLEVIATION: POVERTY ALLEVIATION: MALAYSIAN EXPERIENCEMALAYSIAN EXPERIENCE

33

OUTLINEOUTLINE ObjectiveObjective IntroductionIntroduction 1. Brief on Malaysia1. Brief on Malaysia 2. Poverty in Malaysia2. Poverty in Malaysia 3. Rural Transformation in Malaysia3. Rural Transformation in Malaysia Poverty Reduction Policies, Strategies Poverty Reduction Policies, Strategies

and Programs in Malaysiaand Programs in Malaysia Achievements of Poverty Eradication Achievements of Poverty Eradication

ProgramsPrograms Key Success Factors Key Success Factors ConclusionConclusion

44

OBJECTIVEOBJECTIVE To present the Malaysian experience To present the Malaysian experience

in poverty reduction that could be in poverty reduction that could be shared among the member shared among the member countries of ASEAN Plus Three countries of ASEAN Plus Three

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MALAYSIA IN THE WORLDMALAYSIA IN THE WORLD

MALAYSIA

66

MAP OF MALAYSIAMAP OF MALAYSIA

Area = 330,242 sq. kmPopulation 2003 = 24.5 million1. Indigenous Group – 66.1%2. Chinese -25.3%3. Indian – 7.4%4. Others – 1.2%

Peninsular

Sarawak

Sabah

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DEFINITION OF POVERTYDEFINITION OF POVERTY Absolute PovertyAbsolute Poverty- Lack of income to acquire minimum Lack of income to acquire minimum

necessities of lifenecessities of life- Poverty Line Income (PLI) – a minimum Poverty Line Income (PLI) – a minimum

income level needed by a household to income level needed by a household to meet its basic expenditure on food and meet its basic expenditure on food and non-food, required for a decent non-food, required for a decent standard of livingstandard of living

- PLI (2004): PLI (2004): Peninsular Malaysia – RM661/US$174Peninsular Malaysia – RM661/US$174

Sabah – RM888/US$233Sabah – RM888/US$233 Sarawak – RM765/US$201Sarawak – RM765/US$201

88

Cont..Cont..

Relative PovertyRelative Poverty- Linked to the notion of income disparity Linked to the notion of income disparity

between groupsbetween groups- Measured by Income Disparity Ratios Measured by Income Disparity Ratios

between groupsbetween groups- Examples: The top 20 and bottom 30% Examples: The top 20 and bottom 30%

of the population or between the of the population or between the various ethnic groups or between the various ethnic groups or between the urban and rural dwellersurban and rural dwellers

99

1957 1971 1994 2000 2010 2020

FIRSTTRANSFORMATION

(1957-1994)

SECONDTRANSFORMATION

(1994 – 2020)

PRE-NEPGrowth

Focus on Basic and Minimum Needs at Grassroots Level

Agriculture the Prime Economic Activities

RED Book Implementation & Monitoring system

NEP :Growth with Equity

Creation of New Agencies

Aggressive Poverty Redressal

New Land Development/In-Situ

Subsidised Services

NDP :Balance Growth

Streamlining and Rationalizing of Roles of Agencies

Commercialization of Agriculture/Market Driven Approach

Relative Poverty/ Focus on Hardcore Poverty

NVP :Sustainable Development

To Create a Rural Setting that is Developed, Attractive and Profitable

Reduction of Poverty and eradication of Hardcore poverty

Focus on Human and Economic Development

MALAYSIA : EVOLUTION AND TRANSFORMATION OF RURAL DEVELOPMENTMALAYSIA : EVOLUTION AND TRANSFORMATION OF RURAL DEVELOPMENT

NPSRDTowards

2020. . . ..1991

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THE 7 INITIATIVES UNDER THE SECOND RURAL TRANSFORMATION

Nurturing Excellent IndividualsStrengthening the Well-being of Family InstitutionsDeveloping a Resilient SocietyProviding Quality Infrastructure, utilities & amenitiesDeveloping a Sustainable EconomyProviding Effective Delivery SystemDeveloping Institutional Framework which are Responsive to Changes

1111

POLICIES AND STRATEGIESPOLICIES AND STRATEGIES Increase opportunities for inter-Increase opportunities for inter-

sectoral movements of the poor from sectoral movements of the poor from low productivity to higher low productivity to higher productivity economic activitiesproductivity economic activities

Increase the productivity and income Increase the productivity and income of low productivity occupations of low productivity occupations through skill training, adoption of through skill training, adoption of modern techniques and facilities and modern techniques and facilities and using higher yieldingusing higher yielding

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CATEGORIES OF POOR HOUSEHOLDSCATEGORIES OF POOR HOUSEHOLDS

PoorPoor- Households who earned a monthly Households who earned a monthly

income less than the specified PLIincome less than the specified PLI

Hardcore poorHardcore poor- Households whose earned monthly Households whose earned monthly

income less than the specified for the income less than the specified for the hardcore poor (food PLI)hardcore poor (food PLI)

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MALAYSIA: INCIDENCE OF POVERTY AND HARDCORE POVERTY, 2004 MALAYSIA: INCIDENCE OF POVERTY AND HARDCORE POVERTY, 2004

STATESTATEPOORPOOR HARDCORE POORHARDCORE POOR

UrbanUrban RuralRural OverallOverall UrbanUrban RuralRural OverallOverallJohorJohor 1.01.0 4.24.2 2.02.0 0.20.2 0.50.5 0.30.3KedahKedah 3.03.0 9.89.8 7.07.0 0.50.5 1.81.8 1.31.3KelantanKelantan 8.38.3 11.811.8 10.610.6 0.80.8 1.51.5 1.31.3MelakaMelaka 1.81.8 1.81.8 1.81.8 0.20.2 0.30.3 0.20.2Negeri SembilanNegeri Sembilan 0.30.3 2.52.5 1.41.4 -- 0.40.4 0.20.2PahangPahang 1.11.1 5.65.6 4.04.0 0.20.2 1.61.6 1.01.0Pulau PinangPulau Pinang 0.10.1 0.70.7 0.30.3 -- -- --PerakPerak 2.22.2 9.59.5 4.94.9 0.20.2 2.62.6 1.11.1PerlisPerlis 5.25.2 6.96.9 5.35.3 1.61.6 1.81.8 1.71.7SelangorSelangor 0.70.7 3.73.7 1.01.0 -- 0.40.4 0.00.0TerengganuTerengganu 10.910.9 20.420.4 15.415.4 2.92.9 5.95.9 4.44.4W.P. Kuala LumpurW.P. Kuala Lumpur 1.51.5 0.00.0 1.51.5 0.20.2 -- 0.20.2Peninsular MalaysiaPeninsular Malaysia 1.71.7 7.97.9 3.63.6 0.20.2 1.61.6 0.70.7Sabah & LabuanSabah & Labuan 12.912.9 35.635.6 23.023.0 2.42.4 11.611.6 6.56.5SarawakSarawak 1.71.7 12.912.9 7.57.5 0.10.1 2.12.1 1.11.1 MalaysiaMalaysia 2.52.5 11.911.9 5.75.7 0.40.4 2.92.9 1.21.2

Source: Economic Planning Unit, Prime Minister’s Department

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POVERTY POVERTY REDUCTION REDUCTION

PROGRAMMESPROGRAMMES

IN-SITU IN-SITU DEVELOPMENTDEVELOPMENT

INTEGRATING INTEGRATING AGRICULTURAL/AGRICULTURAL/DOWNSTREAMDOWNSTREAMPROCESSINGPROCESSING

DOUBLE DOUBLE CROPPING, CROPPING,

INTER-CROPPINGINTER-CROPPINGAND MIXED AND MIXED

FARMINGFARMING

FARMERS’ MARKETSFARMERS’ MARKETSIN URBAN CENTERS IN URBAN CENTERS

TO ENABLETO ENABLE

INCORPORATE INCORPORATE TRAININGTRAINING

SUPPORT FACILITIESSUPPORT FACILITIES

RESETTLEMENTRESETTLEMENT

POVERTY REDUCTION PROGRAMMESPOVERTY REDUCTION PROGRAMMES

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INCOME INCOME GENERATIG GENERATIG PROGRAMPROGRAM

SKILL SKILL

TRAINING &

TRAINING &

CAREER

CAREER

DEVELOPMET

DEVELOPMET

PROGRAM

PROGRAM

MIND-SET MIND-SET CHANGE CHANGE

PROGRAMPROGRAM

HOUSING

HOUSING

ASSISTANCE

ASSISTANCE

PROGRAM

PROGRAMDIETARY DIETARY

FOOD FOOD SUPPLEMENT SUPPLEMENT

PROGRAMPROGRAM

COMMUNITY

COMMUNITY

RESETTLEMENT

RESETTLEMENT

DEVELOPMENT

DEVELOPMENT

PROGRAM

PROGRAM

CHILD CHILD NURSERY NURSERY

DEVELOPMENT DEVELOPMENT PROGRAMPROGRAM

EDUCATIONAL

EDUCATIONAL

DEVELOPMENT

DEVELOPMENT

PROGRAM

PROGRAM

PEOPLE’S WELL-BEING DEVELOPMENT SCHEMEPEOPLE’S WELL-BEING DEVELOPMENT SCHEME

PROGRAMMESPROGRAMMES

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DATA BANK FOR HARDCORE DATA BANK FOR HARDCORE POORPOOR

Hardcore Poor Registry (on-line Hardcore Poor Registry (on-line computerized Hardcore Poor Profile)computerized Hardcore Poor Profile)

The Right Targeting and Matching of The Right Targeting and Matching of profile and project (based on needs)profile and project (based on needs)

Streamlining all the assistance by Streamlining all the assistance by various Ministries and Agencies various Ministries and Agencies

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ACHIEVEMENTS OF POVERTY ACHIEVEMENTS OF POVERTY ERADICATION PROGRAMSERADICATION PROGRAMS

19701970 19901990 20002000 20022002 20042004Incidence Of PovertyIncidence Of Poverty 58.758.7 21.821.8 7.57.5 5.15.1 5.75.7

No. of Poor No. of Poor HouseholdsHouseholds

705.9705.9 530.3530.3 360.1360.1 267.9267.9 311.3311.3

Incidence of Incidence of Hardcore PovertyHardcore Poverty

-- 5.25.2 1.41.4 1.01.0 1.21.2

No. of Hardcore No. of Hardcore Poor HouseholdsPoor Households

-- -- 66.066.0 52.952.9 67.367.3

Total HouseholdsTotal Households 1,203.41,203.4 2,431.92,431.9 4,800.04,800.0 5,220.65,220.6 5,459.45,459.4

Notes: The increase in 2004 due to revision on PLI measurement

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RURAL INFRASTRUCTURE AND RURAL INFRASTRUCTURE AND UTILITIES UTILITIES

Rural Water Supply (92%-99%) Rural Water Supply (92%-99%) coveragecoverage

Rural Electricity (78%-99%) coverageRural Electricity (78%-99%) coverage Village Roads (35,551 km)Village Roads (35,551 km) Rural Roads (1,000 km)Rural Roads (1,000 km)

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CRITICAL SUCCESS FACTORSCRITICAL SUCCESS FACTORSPolitical and economic stabilityFull commitment of the political and administrative leaders- Continuous budgetary support- Administrative machinery geared for developmentRural development and poverty eradication are integral and critical components of national development planClear and explicit policy statements.Clear identification of target groups, clear matching of programmes and needs of target groupsGovernment plays the leading role in rural development and at the same time encourages private and NGO sectors involvement.

2020

CONCLUSIONCONCLUSION

Balance development – strong and Balance development – strong and real emphasis on equitable real emphasis on equitable distribution of development benefitsdistribution of development benefits

Target-specific - addressing issues on Target-specific - addressing issues on the pockets of povertythe pockets of poverty

The philosophy of development, The philosophy of development, growth with equity is integrated in all growth with equity is integrated in all the Malaysian development policies.the Malaysian development policies.

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Thank You