KUALA LUMPUR (Sept 23): While tackling poverty is expected to be more challenging post-Covid-19, Minister in the Prime Minister’s Department (Economy) Datuk Seri Mustapa Mohamed said the revised national poverty line income (PLI) is a reflection of the government’s commitment in addressing poverty.
Notably, Malaysia had revised the national PLI to RM2,208 from RM980, after 15 years.
Mustapa said Malaysia has had many successes in eradicating poverty since the implementation of the new economic policy in 1971, adding that the government poverty eradication programmes, complemented by non-governmental organisations in the private sector, had been very effective in tackling poverty.
The overall poverty rate fell to 5.6% in 2019 from 49.7% in 1970, he said.
“Income generating programmes as well as the provision of the basic needs encompassing housing and education and health can play a major role in improving the wellbeing of all Malaysians,” he said in his officiating remarks at United Nations Development Programme Webinar: Unpacking Malaysia's New Poverty Line Income (PLI) & Multidimensional Poverty Index 2020 Report Findings here today.
As such, he noted that educational assistance programmes such as the Kumpulan Wang Amanah Pelajaran Miskin and Rancangan Makanan Tambahan have been implemented to ease the burden of the poor and low-income households, adding that microcredit financing schemes and entrepreneur hand-holding programmes are implemented to encourage the poor and low-income households to take part in income generating activities.
Noting that the Shared Prosperity Vision 2030 and the 12th Malaysian Plan (2021-2025) will put in place more effective measures in addressing poverty, Mustapa said this will enable Malaysia to be a developed, sustainable and inclusive nation.
“The government embarked on a holistic approach via the relative poverty and multidimensional poverty index (MPI) during the mid-term review of the 11th Malaysian Plan through the relative poverty approach, [and as a result], poverty rate has decreased 16.9% in 2019 from 19.5% in 2016,” he said.
The MPI encompasses four dimensions, namely education, health, living standards and income, as well as 11 indicators related to socio-economic development for Malaysia, he said, noting that the Malaysian MPI has improved to 1.1% in 2019, from 1.5% in 2016.
“The Covid-19 pandemic also has increased [the] importance of MPI, which is key in measuring non-monetary poverty,” he said, adding that there is a need to include digital inclusion in a more meaningful way as internet connectivity has become a basic necessity for the people.