PM outlines five strategies to eradicate poverty in Malaysia


PUTRAJAYA: Prime Minister Datuk Seri Anwar Ibrahim has outlined five strategies aimed at eradicating poverty in Malaysia.

One key strategy involves using net disposable income as an indicator to identify target groups eligible for poverty relief aid. The Prime Minister explained that this approach would minimise leaks in the system and ensure a fairer distribution of resources.

“It also takes into account basic daily expenditures, including costs for food, clothing, housing, utilities, and transportation, which may vary based on location and household demographics,” he stated in a statement on Monday (Sept 30).

As part of 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 programs. He cautioned that sole reliance on government funding could jeopardise the sustainability of these programs and create fiscal strain.

Anwar highlighted the importance of 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), investment firms 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 for effectively reaching target groups,” Anwar added.

For the fourth strategy, Anwar called for a change in mindset regarding poverty. 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 programs.

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