PETALING JAYA: Data showing a narrowing income gap suggests that people-first policies under the Madani government may be starting to deliver measurable results - in improving income distribution through targeted social and economic interventions.
Economist Assoc Prof Dr Aimi Zulhazmi Abdul Rashid said the figures from the Malaysia Statistics Department’s (DOSM) showed a narrowing gap between the B40 and the top tier, as well as significant reduction of hard core poor.
He was referring to DOSM’s Household Income and Expenditure Survey (HIES) 2024 Report, which indicated that Malaysia has nearly eradicated hardcore poverty, with the rate now standing at just 0.09%.
According to the report, disposable household income increased by 3.2% to RM7,584 in 2024, while the median rose 5.1% to RM5,999, representing 82.8% of total gross household income, indicating households' ability to meet essential expenditure needs.
The report also showed that absolute poverty declined to 5.1% in 2024, down from 6.2% in 2022, while income inequality narrowed as the Gini coefficient fell to 0.390 from 0.404 two years ago.
“The data is somewhat good indicators and contributions by the Santuni Madani programme,” said Prof Aimi Zulhazmi, an associate professor of Finance and Islamic Finance at the Universiti Kuala Lumpur Business School.
Prof Aimi Zulhazmi said people-centric initiatives, like Santuni Madani and Kampung Angkat Madani, helped to boost rural incomes through targeted support and MSME growth, helping narrow Malaysia’s income gap.
He noted that the Santuni Madani programme is an initiative that aims to empower the potential and capabilities of village communities through continuous engagement with leaders of government agencies and government-linked companies (GLCs) to identify and resolve local socio-economic issues.
The programme is implemented through various activities such as psycho-educational sessions, health screenings, financial assistance, and infrastructure improvements to address problems such as educational dropout and asnaf (underprivileged Muslim) issues.
This initiative was announced in Budget 2024 by Prime Minister Datuk Seri Anwar Ibrahim with the goal to narrow the gap in household income between rural and urban areas.
“It is not just about handing out fish or fishing rods, it is about developing the right business model and ecosystem tailored specifically for selected villages, with clear goals in place.
“The focus is on building a sustainable environment that goes beyond cash assistance, aiming to boost income through micro, small, and medium enterprises (MSMEs).
Chin said PMX has shown good foresight and strong commitment in implementing these people-centred projects under the Madani vision.
“As GLCs are given the mandate to select the villages, and report the results to the government. It affirms the government commitment to pursue this agenda,” said Prof Aimi Zulhazmi.
Weighing in on the topic, SME Association president Chin Chee Seong expressed optimism about the impact of initiatives such as Kampung Angkat Madani and Santuni Madani on underserved communities, especially the B40 group.
“There’s no doubt that the Kampung Angkat Madani and Santuni Madani programmes have helped strengthen the resilience of our underserved communities. These initiatives bring much needed infrastructure, education support, and local economic opportunities to rural and B40 families.
“I think it’s fair to say that PMX has shown good foresight and strong commitment in implementing these people-centred projects under the Madani vision. It shows that the government is serious about uplifting communities and ensuring no one is left behind,” he said.
Chin acknowledged that while such initiatives ideally should have been part of national development plans earlier, their current implementation marks a significant and positive step forward.
“Basic infrastructure and access to services are fundamental needs that every Malaysian should already have,” he noted, highlighting the importance of addressing these needs with urgency.”
Looking ahead, Chin expressed hope that the government will continue to build on this progress with transparency and accountability.
“I fully support these efforts, but I also hope the government will be more transparent by publishing regular report cards and measurable outcomes. This is important so that the public can see how the funds are being spent, what results have been achieved, and how lives are truly being improved.”
He believes that such openness will inspire greater confidence and trust, ensuring these initiatives continue to deliver real, meaningful impact on the ground.
