Malaysia: UNICEF study highlights the stark realities of poverty in Malaysia

Government must do the hard work

Just over two months ago, prime minister Anwar Ibrahim claimed that efforts to eradicate poverty in Kuala Lumpur, Melaka and Negeri Sembilan have been 100 percent successful. Unicef just a few days ago releases a horrendous report claiming many families in Kuala Lumpur are still suffering the effects from the Covid-19 pandemic. The results of a longitudinal study among low-income households in Kuala Lumpur published online “Living on the Edge” found otherwise. The study of 755 households conducted between October 14 to November 16 in 2023 found;

1.      While there have been improvements in the labor market and earnings, the prevalence of poverty persists, particularly among women, children, and those with disabilities.

2.      There is a pressing need for enhancements to social protection and assistance programs.

3.      The rise in food prices is causing significant financial strain for the households.

4.      Low-income families face greater challenges in accessibility and quality of education.

5.      Parents are experiencing heightened mental stress, surpassing levels observed during the pandemic.

6.      Higher wages are preferred, not petrol subsidies.

A Straits Times report “Poor Malaysian families worse off now than during Covid-19 pandemic: Unicef Report” elaborated on a few vivid stories of poverty and hardship among people in Kuala Lumpur.

What is more alarming is that households in other states are facing even tougher circumstances. Many problems facing individuals and families such as disabilities and the failure to earn enough incomes to feed families are not captured in the statistics. The rising costs of food items is hitting families very hard.

Assistance

The government through the Rahmah Welfare Programme has released more than RM 2.27 billion, since January. Households with incomes less than RM 2,000 are entitled to RM 3,700 assistance. This is just a token of their actual needs. Many households are not even aware of the Ramah entitlements, where there is a big disconnect between government bureaucracy and those in need.

While those in need are given meagre assistance, those in secure employment within the civil service are to receive a 13 percent salary rise from December onwards. Although this move may force the private sector to eventually follow suit, the marginalized in Malaysia are outside the government’s focus, as policy makers either don’t see or ignore the problem.

Professor Geoffrey Williams in his FMT column today suggests a fully universal social protection policy. This would be much better than the ad hoc programmes currently in place. The use of subsidies to get money in the hands of the marginal is not as effective as universal supplementary income systems. Its still unsure how well PADU will assist in targeting subsidies to the marginalized.

With the recent revelation that RM 277 billion of government expenditure has been lost in the last 5 years through corruption, this leakage could fund a universal income scheme. This doesn’t count money that could be saved through the elimination of inefficiency in government.

The government must be willing to do the hard work.

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