Datuk Seri Dr Shafiq Sit, a Rhodes scholar and investor, says solving poverty is not a secondary issue. It is actually mission critical. It can help resolve many other high table problems including those related to national unity.
RECENTLY the Sultan of Perak, Sultan Nazrin Muizzuddin Shah, said it is meaningless to have so many skyscrapers when there is still poverty to overcome in our country.
This frank assessment is a breath of fresh air as many have painted the picture that poverty has been eradicated in many states in Malaysia. This argument is flawed.
We need to solve the issue of poverty in a holistic way.
The poor will crawl if they have to and work, beg or steal to feed their families.
Why is it that we fail to understand the plight of the poor?
Some argue that it is convenient to declare zero poverty as long as statistically the officials can show a good report card satisfying certain thresholds.
A closer examination of our shifting economic demographics shows that poor Malaysians are struggling and have begun to vote with their feet — moving overseas to Thailand, Singapore and even Australia to earn a living.
To be sure, we cannot blame the government for all these things that are happening to our poor. But we can blame the government if they turn a blind eye and fail to address poverty effectively.
Given rising national debt and other pressing issues such as national unity, perhaps the government is not sufficiently focused on poverty alleviation.
We have to analyse how a seemingly “non-caring” attitude might breed contempt for authority, and rectify it before it is manipulated by irresponsible quarters to become a nightmarish rallying cry.
Our government must demonstrate beyond a doubt that it really cares for the poor, especially at this juxtaposition of time when our nation’s fiscal responsibilities compel the cutting of subsidies. The cut is timely but it implies higher prices for the poor. It might be harsh if the targeted subsidy is not managed well.
So, on the one hand, this attempt to end the subsidy mentality is praiseworthy as it will help avoid the economic path faced by countries like Sri Lanka. This helps distance us from having to borrow from the IMF or World Bank.
What about the speed or implementation time for our nation’s poor to enjoy targeted subsidies? In Sabah and Sarawak, the poor are dissatisfied with the lack of cheap food, basic necessities, clean water and electricity.
Worse still is that they perceive that Peninsular Malaysians are unfairly enjoying their gravy petroleum train. Negative thinking among the poor in Sabah and Sarawak is “they took our resources for mega projects and skyscrapers” and then neglected funding for our schools in Sabah and Sarawak.
What would happen if we get the targeted subsidy implementation wrong? Say we use the savings for mega projects?
Loyalty cannot be bought but cultivated ground up with fairness in job creation and income generation. For the poor in Sabah and Sarawak, they have a perception that their resources have been used unfairly.
They see how money from the rich natural resources of Sabah and Sarawak have facilitated so many top universities, world class infrastructures like KLIA and KLIA2, and the amazing skyscrapers in KL, but none of which are in Sabah or Sarawak.
Countless scholarships allow Peninsular Malaysians the privilege to study even overseas and succeed. As a result, there is a huge gap not just in income but knowledge.
This sad truth cannot be perpetuated as the poor in Sabah and Sarawak did not sign up for this when they were invited to join what was supposed to be a nation-building effort at the heart of Malaysia.
On the next Malaysia Day on Sept 16, we should mark it with a Rukun where treatment for the poor should be urgently institutionalised across races — Kadazan, Iban, Dayak, Indians and all.
Solving poverty is not a secondary issue. It is actually mission critical. It can help resolve many other high table problems including those related to national unity.
Stop wasteful shenanigans be it huge never-ending dinners or mega projects. And if our coffers have say RM80bil to spend on any impending mega project, then spend it on helping the poor especially in Sabah and Sarawak — improve the education inputs, focus on building real capacity, impart a higher knowledge quotient and develop higher standards of education and living.
As such, the government should pour money into a New Deal for the poor. Billions saved from the targeted subsidy should go into training, retraining and creating useful jobs for the poor. This does not translate to handouts as the poor can work.
Have a detailed review on how we classify poverty beyond any doubt. Recent Unicef reports show the variance between our calculations and theirs. Among others, Unicef contends that poverty is prevalent, exacerbated by huge inequalities in income and wealth.
And if we cut subsidies on necessities like diesel, then surely we must cut any waste or projects that will saddle our country with spiralling debts and a heavier fiscal drag.
Next, stop the onslaught of foreign workers brought in by powerful agencies that take up even traditional jobs like cleaning. Poor Malaysians must be able to hold on to their jobs with some hope to fight for their dreams.
This article first appeared in Star Biz7 weekly edition.
