Datin Seri Prof Dr Suhaiza Hanim Mohamad Zailani is the Ungku Aziz Centre for Development Studies director at Universiti Malaya. She says government measures, corporate social responsibility programmes and public-private sector partnerships are required to successfully address poverty in the country.
POVERTY in Malaysia is a complex issue that is exacerbated by several factors, including inadequate community engagement, structural and policy problems and resource mismanagement.
It is recommended that the government analyse the human rights approach to ending poverty. This is because the targeted groups are frequently excluded from policymaking.
Women, the impoverished, those with disabilities and children are all included in this. A more inclusive process involving disadvantaged people is necessary to ensure a fair and compassionate policymaking process consistent with Madani ideals.
In the meantime, the primary contributing variables at the implementation level are system-wide governance concerns. An ecosystem that collaborates to combat poverty might become more sustainable.
The government must recognise the efforts of business sectors and NGOs and offer means to facilitate their work to benefit the entire population. It was noted that NGOs providing services to poverty-stricken undocumented people, especially children, were subjected to taxes despite receiving funds from outside the government.
Meanwhile, an all-encompassing strategy that prioritises mental and spiritual well-being is required for poverty intervention. This is especially important when Malaysia is becoming an ageing population that might have a greater negative effect on the poor.
The latest projections from the Statistics Department suggest that Malaysia’s population is ageing, with the proportion of people 65 and older growing from 7.2% in 2022 to 7.4% in 2023, or 2.5 million people.
In this regard, the idea of health as a whole includes mental health. A person’s ability to be productive, achieve financial independence and make wise judgments is all impacted by their health. By enhancing people’s general well-being and allowing them to engage in society fully, treatment for mental health issues can help end the cycle of poverty.
Furthermore, it is imperative to acknowledge the effects of climate change on marginalised populations. Climate change causes variable temperatures, dry periods, downpours and shifts in precipitation in our surroundings.
Because it creates instability in the agriculture industry, rural communities are compelled to seek out other revenue streams. Thus, future policies need to permit this diversification.
The future lies in digitising support and help, but it must happen in step with users’ abilities. A robust web platform is required for efficient management and coordination of diverse activities to help the targeted group and for the provision of easily available information, support and assistance.
Databases must be connected to provide smooth coordination and information access. This will increase the effectiveness and cost of executing operations necessary to support the designated context.
Programme and activity sustainability is crucial, and technology is the main factor determining how well these needs are met.
For the education dimension, the need for low-income urban children to access a high-quality education system at an affordable price is emphasised at the structural and policy levels. One way to do this is by building new boarding schools and expanding the number of existing schools to lower the cost of child transportation.
Beyond achieving academic excellence, there is also a focus on education. It is important to spark students’ enthusiasm for learning to help them develop soft skills like self-confidence, communication, problem-solving and organisational abilities.
School should be a place where adolescents may change their perspective on achievement and escape poverty. By integrating financial literacy instruction into the curriculum, educational institutions may facilitate the development of students’ money management and decision-making abilities.
Additionally, by encouraging innovation and entrepreneurship in the classroom, educational institutions may encourage young people to think outside the box and look for financial advancement, eventually benefitting the community.
Specifically, financial inclusion and entrepreneurship are two key factors impacting poverty in Malaysia’s economy and finance sector.
Several suggestions have been made to increase financial inclusion, such as finding organisations that can fund small enterprises and creating a microcredit system project that aids individuals or organisations in need of financial support. It is advised that hard and soft skills be developed and social enterprise policies be implemented to equip microentrepreneurs better.
Poverty is a complicated issue in Malaysia that requires a diversified strategy to address its many facets. Government measures, corporate social responsibility programmes and public-private sector partnerships are required to successfully address these concerns.
While putting compassion and community values at the forefront of policy-making, it is equally important to consider unique situations that can make it difficult to meet conditional assistance standards.
This article first appeared in Star Biz7 weekly edition.
