SECOND ASEAN PLUS THREE HIGHLEVEL SEMINAR ON POVERTY ALLEVIATION

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SECOND ASEAN PLUS THREE HIGH-LEVEL SEMINAR ON
POVERTY ALLEVIATION 25TH -29th SEPTEMBER
2006 THE MINISTRY OF RURAL AND REGIONAL
DEVELOPMENT (MRRD) MALAYSIA
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POVERTY ALLEVIATION MALAYSIAN EXPERIENCE
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OUTLINE

• Objective
• Introduction
• 1. Brief on Malaysia
• 2. Poverty in Malaysia
• 3. Rural Transformation in Malaysia
• Poverty Reduction Policies, Strategies and
  Programs in Malaysia
• Achievements of Poverty Eradication Programs
• Key Success Factors
• Conclusion

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OBJECTIVE

• To present the Malaysian experience in poverty
  reduction that could be shared among the member
  countries of ASEAN Plus Three

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MALAYSIA IN THE WORLD
MALAYSIA
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MAP OF MALAYSIA
Peninsular
Sabah
Sarawak

• Area 330,242 sq. km
• Population 2003 24.5 million
• Indigenous Group 66.1
• Chinese -25.3
• Indian 7.4
• Others 1.2

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DEFINITION OF POVERTY

• Absolute Poverty
• Lack of income to acquire minimum necessities of
  life
• Poverty Line Income (PLI) a minimum income
  level needed by a household to meet its basic
  expenditure on food and non-food, required for a
  decent standard of living
• PLI (2004)
• Peninsular Malaysia RM661/US174
• Sabah RM888/US233
• Sarawak RM765/US201

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Cont..

• Relative Poverty
• Linked to the notion of income disparity between
  groups
• Measured by Income Disparity Ratios between
  groups
• Examples The top 20 and bottom 30 of the
  population or between the various ethnic groups
  or between the urban and rural dwellers

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MALAYSIA EVOLUTION AND TRANSFORMATION OF RURAL
DEVELOPMENT
SECOND TRANSFORMATION (1994 2020)
NPSRD Towards 2020
FIRST TRANSFORMATION (1957-1994)
.
.
.
.
.
2020
1991
1957
1971
1994
2000
2010
PRE-NEP Growth 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 Commercializat
ion 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
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THE 7 INITIATIVES UNDER THE SECOND RURAL
TRANSFORMATION

• Nurturing Excellent Individuals
• Strengthening the Well-being of Family
  Institutions
• Developing a Resilient Society
• Providing Quality Infrastructure, utilities
  amenities
• Developing a Sustainable Economy
• Providing Effective Delivery System
• Developing Institutional Framework which are
  Responsive to Changes

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POLICIES AND STRATEGIES

• Increase opportunities for inter-sectoral
  movements of the poor from low productivity to
  higher productivity economic activities
• Increase the productivity and income of low
  productivity occupations through skill training,
  adoption of modern techniques and facilities and
  using higher yielding

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CATEGORIES OF POOR HOUSEHOLDS

• Poor
• Households who earned a monthly income less than
  the specified PLI
• Hardcore poor
• Households whose earned monthly income less than
  the specified for the hardcore poor (food PLI)

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MALAYSIA INCIDENCE OF POVERTY AND HARDCORE
POVERTY, 2004
Source Economic Planning Unit, Prime Ministers
Department
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POVERTY REDUCTION PROGRAMMES
RESETTLEMENT
IN-SITU DEVELOPMENT
SUPPORT FACILITIES
POVERTY REDUCTION PROGRAMMES
INTEGRATING AGRICULTURAL/ DOWNSTREAM PROCESSING
INCORPORATE TRAINING
DOUBLE CROPPING, INTER-CROPPING AND MIXED
FARMING
FARMERS MARKETS IN URBAN CENTERS TO ENABLE
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PEOPLES WELL-BEING DEVELOPMENT SCHEME
PROGRAMMES
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DATA BANK FOR HARDCORE POOR

• Hardcore Poor Registry (on-line computerized
  Hardcore Poor Profile)
• The Right Targeting and Matching of profile and
  project (based on needs)
• Streamlining all the assistance by various
  Ministries and Agencies

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ACHIEVEMENTS OF POVERTY ERADICATION PROGRAMS
Notes The increase in 2004 due to revision on
PLI measurement
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RURAL INFRASTRUCTURE AND UTILITIES

• Rural Water Supply (92-99) coverage
• Rural Electricity (78-99) coverage
• Village Roads (35,551 km)
• Rural Roads (1,000 km)

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CRITICAL SUCCESS FACTORS
Political and economic stability Full commitment
of the political and administrative
leaders - Continuous budgetary support - Administr
ative machinery geared for development Rural
development and poverty eradication are integral
and critical components of national development
plan Clear and explicit policy
statements. Clear identification of target
groups, clear matching of programmes and needs of
target groups Government plays the leading role
in rural development and at the same time
encourages private and NGO sectors involvement.
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CONCLUSION

• Balance development strong and real emphasis on
  equitable distribution of development benefits
• Target-specific - addressing issues on the
  pockets of poverty
• The philosophy of development, growth with equity
  is integrated in all the Malaysian development
  policies.

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Thank You