SHAH ALAM: Selangor has raised its poverty income threshold to RM1,500, about RM700 more than the national level, to reflect more realistically the high cost of living in the country’s most developed state.

Menteri Besar Mohamed Azmin Ali said the new rate was “responsible” and part of his administration’s aims to raise incomes and broaden the middle class in Selangor. After the revision, about 30% of Selangor’s five million residents will be classified as poor.

“As the country’s most developed state, Selangor cannot use the same poverty income threshold as Putrajaya. Therefore Selangor has set a threshold that is realistic and responsible, which is RM1,500. According to this criteria, about 30% of Selangor’s residents would fall below the poverty line,” said Mohamed Azmin while tabling the state’s Budget 2015 at the Selangor assembly.

Mohamed Azmin said the state government would increase funds for its two micro-credit schemes, Program Mikrokredit Miskin Bandar (Mimbar — for the urban poor) and Skim Mikrokredit Selangor (Skimsel — for the rural poor), to encourage more of the poor to become entrepreneurs. The total amount of funds for Skimsel has been increased to RM60 million while Mimbar will receive a total of RM40 million.

“All these programmes will be part of our hijrah initiative, to help the poor graduate to the middle class,” Mohamed Azmin said. — The Malaysian Insider

This article first appeared in The Edge Financial Daily, on November 25, 2014.