PUTRAJAYA: The poverty line in Malaysia may need a comprehensive review as part of the nation's ongoing efforts to eradicate poverty, says economist Prof Dr Yeah Kim Leng, a member of the Prime Minister’s policy advisory committee.
Yeah emphasised that there is no one-size-fits-all approach to tackling poverty and any measures implemented must consider the diverse challenges faced across various demographics in the country.
“A thorough review of the poverty line is essential. We also need to redefine the basket of goods and services that reflect current times. Internet access, for example, has become an increasingly important aspect,” he said on Monday (Sept 30) during a panel discussion on the government’s role in poverty eradication, held in conjunction with the launch of the National Symposium to End Poverty.
He suggested that institutionalising cash transfers could be part of the strategy to eradicate poverty, estimating a need for between RM15 to RM16bil annually, which he noted is less than 1% of the gross domestic product (GDP). “If we can sustain GDP growth of four to 5%, we could potentially raise this to RM18 or RM19bil annually, in addition to savings from subsidies,” he added.
Yeah pointed out that eradicating poverty is a multidimensional challenge, requiring complementary strategies for effective solutions.
According to the 2022 Household Income Survey, the median monthly household income is RM6,338 with the relative poverty line usually defined as 50% of the median income (RM3,169).
Assoc Prof Datuk Ramzah Dambul agreed, reiterating that a one-size-fits-all approach is ineffective. The chief executive officer of the Institute of Development Studies (Sabah) referenced the proverb, “Give a man a fish and you feed him for a day; teach a man to fish and you feed him for a lifetime,” noting that this approach is difficult to implement in Sabah.
“We need this in Sabah, but there are critical needs in the region that do not exist in the peninsula. The 'pond' for fishing is limited in Sabah, with Kota Kinabalu being the only significant economic growth centre,” he added. “The lack of overall infrastructure has hindered development in other areas.”
Ramzah added that it is not straightforward for Sabahans to migrate to Kota Kinabalu for better economic opportunities, as many have strong sociocultural ties to their ancestral lands. He proposed that social enterprises could offer a solution by creating an ecosystem for local communities to generate income and improve their well-being.
“This way, they don’t need to leave their lands. We should focus on embedding this concept in national policies,” he concluded.
