PUTRAJAYA: In an effort to create a more meaningful measurement of poverty rate in Malaysia, the concept of net disposable income (NDI) will be used as the basis for identifying groups who need government aid, says Datuk Seri Anwar Ibrahim.
This approach would minimise leakages in the system and ensure a fairer distribution of resources, the Prime Minister added.
“NDI will take into account the Basic Minimum Living Expenditure, which refers to the cost of living necessary for a decent living, including expenses for food, clothing, accommodation, utilities and transportation, and will vary by location and household demographics,” he said in a statement yesterday.
The NDI is one of five key strategies outlined during the National Symposium to End Poverty 2024 launched by Anwar at Putrajaya International Convention Centre (PICC) here yesterday.
On the second strategy, Anwar emphasised the need for ongoing fiscal reforms to promote economic sustainability. This includes targeting subsidies and aid specifically towards social support and poverty alleviation programmes.
He cautioned that relying solely on government funding could jeopardise the sustainability of these programmes and create fiscal strain on the government.
To overcome this, he called for innovative approaches, such as social impact funds and public-private partnerships, to enhance funding for poverty relief.
“We encourage donations from various sources, including government-linked companies (GLCs), government-linked investment companies (GLICs) and the private sector, to support community-based solutions,” he added.
The third strategy focuses on consolidating various data hubs managed by federal ministries and state entities into a Central Database Hub (Padu) by 2025.
This centralised system will help determine the eligibility of aid recipients and facilitate data-driven decision-making.
“Successfully eradicating poverty depends on a consolidated information system. The accuracy and validity of this information are crucial to reach target groups more effectively,” he added.
For the fourth strategy called Changing Attitudes and Mindsets, Anwar wants a change in mindset regarding poverty, while the fifth strategy will prioritise efforts to eradicate poverty through a behavioural insights approach, which seeks to understand the attitudes and behaviours of target groups when designing poverty alleviation programmes.
