HAMeeD 1/2023 Report - Poverty Alleviation and Governance in Sarawak

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The session on Poverty Alleviation and Governance in Sarawak addressed the critical issue of poverty and its impact on the rural and urban populations of the state. Dr. Nurhani Aba Ibrahim, a Senior Lecturer in the Faculty of Business and Management at Universiti Teknologi Mara, Sarawak Branch, provided valuable insights into the dimensions of poverty and the measurement methods employed in Malaysia, particularly in Sarawak.

Introduction

Poverty was defined as the inability of individuals to access resources necessary to enjoy basic living standards. The population was categorized into rural and urban areas based on specific criteria. Rural areas are characterized by a population of fewer than 10,000 with 60% involved in agricultural activities, while urban areas have a population of at least 10,000 with 60% engaged in non-agricultural activities.

Poverty Measurement

In Malaysia, poverty is measured using two methods: the poverty line income (PLI) and the Multidimensional Poverty Index (MPI).

(a) The poverty line income (PLI) considers both food and non-food components to determine if a household falls below the poverty line. The incidence of poverty is calculated using the formula provided in the session.
(b) The Multidimensional Poverty Index (MPI) was introduced in 2015 to complement the income-based poverty measure. It incorporates four dimensions: education, health, living conditions, and income, each weighted at 25%. Sarawak's MPI in 2019 was 0.030, while Malaysia's was 0.0110.

Adjustment to Measurement

The report highlighted the adjustments made to Malaysia and Sarawak's Poverty Line Income in 2016 and 2019. Additionally, a new methodology was introduced in 2019, emphasizing the consumption of healthy foods at an optimal rate compared to the previous methodology, which focused on meeting minimum food needs.

Poverty Incidences

The report presented poverty incidences based on the PLI and MPI measurements, indicating the prevalence of poverty in Sarawak and Malaysia.

Causes and Factors of Rural and Urban Poverty

The session highlighted the factors contributing to poverty in rural and urban areas. Rural poverty was attributed to low education and skills, lack of off-farm employment opportunities, remoteness, environmental degradation, absence of grassroots leadership, and lack of information on available assistance. In contrast, urban poverty was linked to factors such as rural-urban migration, lack of education and skills, lack of funding for business ventures, and a large informal sector.

Agencies and Programs

Various government agencies and programs focused on poverty alleviation were listed. These included the Ministry of Rural and Regional Development, Ministry of Women, Early Childhood and Community Well-being Development - Sarawak Social Welfare Department, Ministry of Food Industry, Commodity and Regional Development, Tabung Baitul Mal Sarawak, Social Welfare Department (Federal), Ministry of Human Resource - National Wage Consultative Council, Ministry of Rural Development - KEMAS, Amanah Ikhtiar (AIM), and TEKUN Nasional.

Issues Restricting Achievements

The report identified several issues that hindered the effectiveness of poverty alleviation initiatives. These issues included inefficient distribution of social assistance, inaccessibility to rural areas, the economic recession during the Covid-19 pandemic (2020-2021), lack of experience and over-dependence on government subsidies among Bumiputeras (indigenous people), misuse of financial aids, and issues related to corruption, cronyism, and nepotism.

The Way Forward

To address the issues and enhance poverty alleviation efforts, the Malaysian Government is currently looking into the following initiatives:

a) Targeted Subsidies
Shifting from blanket subsidies to targeted and selective subsidies and assistance to ensure that resources are allocated more efficiently and effectively. Improving the system of distribution of subsidies to mitigate misappropriation of resources.

b) Phasing Out B40, M40 and T20
Gradual phasing out of the B40 (bottom 40%), M40 (middle 40%), and T20 (top 20%) classifications to minimize subsidy exemption errors arising from salary category classifications.

c) Household Net Spending Income
Implementing various integrated social assistance programs based on household net spendable income to provide better support to those in need.

d) Effective Cooperation
Ensuring effective cooperation among various agencies through partnerships in the Main Database (Padu) to enhance the effectiveness of government subsidy and assistance programs.

Poverty alleviation should be governed towards a better quality of life within a high income economy. A household is poor because their income is below the PLI (household size of 4). To alleviate poverty, they have to earn higher wages. Therefore, there is an urgent need to upgrade their skills and productivity in order to have their income increase at a faster rate. The State/country will eventually reduce their subsidies allocation as our workers as households income progressively increase.

Poverty and Human Rights

The session on Poverty and Human Rights, delivered by Dr. Chew Chee Ming, highlighted the interconnectedness between poverty and human rights and how poverty can be considered a violation of human rights. The speaker emphasized that poverty significantly impacts human rights by depriving individuals of access to basic needs, services, and justice, which can perpetuate a cycle of poverty. The talk aimed to address poverty-related situations that pose risks to basic human rights and explored the poverty rate in Sarawak, Malaysia.

Poverty-related Situations Impacting Human Rights:

a) Statelessness
The speaker identified various statelessness situations, including undocumented individuals, irregular marriages, foreign mothers, and abandoned individuals. Statelessness can deny people access to basic rights and services, perpetuating their poverty.

b) Teenage Pregnancy
Teenage pregnancies can exacerbate poverty by limiting educational and employment opportunities for young mothers, leading to a cycle of economic hardship.

c) Family Breakup
Family breakdowns can lead to financial instability and disrupt access to basic needs and rights, especially for children.

d) Physical and Mental Illnesses
Poverty can lead to inadequate healthcare access, resulting in the worsening of physical and mental health conditions, which further hinder individuals' ability to escape poverty.

e) Addictions
The speaker mentioned various forms of addiction, including substance abuse and nicotine addiction, which can contribute to poverty by draining financial resources and causing social and economic difficulties.

f) Debts
High-interest loans, often taken by vulnerable individuals, can lead to perpetual debt cycles, trapping them in poverty.

g) Elderly
The elderly population can face increased vulnerability due to inadequate financial support and healthcare access, leading to poverty among this demographic.

h) Migrants/Refugees
Migrants and refugees may face marginalization and limited access to basic human rights, perpetuating poverty within these communities.

Article 25 of the Universal Declaration of Human Rights

The speaker referenced Article 25, which declares that everyone has the right to a standard of living adequate for their health and well-being. This includes access to food, clothing, housing, medical care, necessary social services, and security in times of unemployment or other circumstances beyond their control.

Defining Poverty from a Human Rights Approach

The speaker explained poverty from a human rights perspective as the non-fulfilment of a person's right to a range of basic capabilities essential for individuals to pursue valued life goals. The two types of poverty defined were absolute poverty, based on the minimum standards accepted by society, and relative poverty, based on average living standards in society, particularly for low-income households.

Poverty Rate in Sarawak

The session cited data from the Department of Statistics Malaysia (DOSM), indicating that the poverty rate in Sarawak increased significantly after the COVID-19 pandemic. There were 57.8% more newly impoverished people, with the number of poor households rising from 405,400 in 2019 to 639,800 in 2020.

Government Projects

The session discussed various government initiatives aimed at poverty alleviation in Sarawak, such as SALCRA projects and the People's Welfare Development Scheme. These projects included income improvement programs, skills and career training, home assistance programs, education excellence programs, and other support services.

The session emphasized the need to address poverty through a human rights lens, focusing on strengthening families, providing quality education, and promoting sustainable economic activities such as tourism. By addressing poverty as a human rights violation and adopting comprehensive strategies, Sarawak can work towards improving the well-being and living standards of its citizens, especially those living in poverty.

Conclusion

Poverty eradication in Sarawak is a complex and challenging task that requires collaboration among various stakeholders. The causes of poverty, such as low education, limited job opportunities, remoteness, environmental degradation, and information gaps, must be addressed holistically. Upholding economic, social, and cultural rights is crucial in guaranteeing a decent standard of living for all. Implementing evidence-based approaches, improving education and healthcare systems, and empowering individuals are key components of an effective poverty eradication strategy. Additionally, addressing governance and financial support issues is vital in achieving lasting results. By working collaboratively, Sarawak can strive towards a future where poverty is significantly reduced, and individuals can enjoy a better quality of life.

Question and Answer Session

Question 1:

Tuan Haji Japri Bujang Masli serves as the Chief Executive Officer at Pustaka Negeri Sarawak. As the Premier, numerous accomplishments have been achieved. Despite addressing various issues such as transportation, food, and financial assistance, poverty remains a persistent challenge. Could you provide your insights on this matter?

Answer 1:

Dr. Nurhani Aba Ibrahim

Dr. Nurhani emphasized the significance of political determination, vocal advocacy, and concrete actions to instigate positive societal changes. She stressed the need for politicians to prioritize the welfare of their constituents and devise effective strategies for service delivery. While acknowledging that some politicians may make promises solely for electoral gain, she underscored the power individuals possess to assess their performance, voice concerns, and encourage civic participation. Dr. Nurhani advocated for more than just complaining amongst ourselves and called for the courage to voice concerns and take meaningful actions to foster progress and aid those in need.

Kapitan Ir. Peter Wong

Attributing the lack of infrastructure development, particularly roads, to the federal government's shortcomings, Kapitan Ir. Peter Wong voiced support for the state government's 5% sales tax aimed at addressing poverty. He stressed the necessity of broader support and resources to uplift the community from poverty. While acknowledging the state government's efforts, he criticized the federal government's inadequate response during times of crisis. He recalled the pivotal role of federal aid in 1983 to prevent economic collapse. Highlighting the importance of oil revenue and Petronas's contribution, he questioned the utilization of funds and expressed frustration over the federal government's neglect of infrastructure, exemplified by the absence of a road from Coaching to Carpet. He urged people to support poverty alleviation efforts and expressed a determination to break the cycle of poverty.

Dr. Chew Chee Ming

Dr. Chiew shed light on challenges faced by transient teachers and insufficient transportation funds, particularly in rural and underprivileged regions. Expressing concern over the uneven resource distribution, he highlighted historical instances of corruption-induced bankruptcy. He pointed out initiatives like the People's Income program and small business support in Selangor by the current government. Dr. Chiew criticized the perceived lack of essential skills among graduates and highlighted a successful MIT-led research project as a model of accountability. He also addressed petroleum industry royalties and the importance of honouring initial agreements. Dr. Chiew stressed collective efforts and resources to uplift marginalized communities and tackle pressing issues.

In addition, Dr. Chiew highlighted the outsourcing of services to third parties driven by political interests, particularly disadvantaging rural areas. He also mentioned the historical bankruptcy crisis in 1981 due to corruption and the emergence of the Malaysia Madani government focused on mutual aid. He outlined recent initiatives, such as the People Income program and healthcare for the poor in Selangor. Dr. Chiew underlined the need for educational improvement and drew parallels with other nations. He praised the accountable MIT project funded by charities and emphasized the necessity of disrupting entrenched systems for progress.

Dr. Nurhani Aba Ibrahim

Dr. Nurhani acknowledged the trust in past agreements but lamented the lack of advocacy for those rights. She mentioned a politician's influence on petroleum laws in 1974 and deemed the 5% royalty agreement unjust. She aspired to revive and uphold the original 1963 agreements. Emphasizing the need for resources and funding to combat poverty, she advocated for enhanced assistance to the populace.

Question 2:

Colonel Fabian Wong, Secretary of the Society for the Kuching Urban Poor

Is the current strategy effective? If not, what are its weaknesses, and how do you propose it should be improved?

Answer 2:

Dr. Nurhani Aba Ibrahim

Dr. Nurhani advocated for a proactive and decisive litigation system to enhance service delivery. While acknowledging the presence of political interests, she stressed the significance of individuals within the political realm taking responsibility for driving essential changes. She questioned whether enough individuals within politics possess the capability to effectively advocate for transformative improvements. Dr. Nurhani underscored the importance of politicians prioritizing their role in serving and representing the people, rather than the other way around.