Speaking to FMT, two economists noted that as part of its focus on developing a prosperous society, the 12MP mid-term review will boost poverty eradication efforts, increase Malaysians’ standard of living, and improve their access to basic services.
Yeah Kim Leng of Sunway University Business School noted that such thrusts are aligned with the various targets in the UN’s Sustainable Development Goals (SDGs), which recognise that ending poverty and other deprivations must go hand-in-hand with improving health and education, reducing inequality, and spurring sustainable economic growth.
“We should take stock of the various SDGs like inclusive and equitable quality education, ensuring healthy lives, and decent work for all,” Yeah said.
“It’s important to note that the review is aimed at closing the gaps in these areas, which will enable Malaysia to achieve the SDGs by 2030.
“Lower income groups have been worse off post-pandemic as it has not been easy for them to benefit from the country’s economic recovery.
“The 12MP mid-term review ensures that there are strategies and programmes aimed at the low-income and vulnerable sections of society, which are based on the principles of inclusivity and sustainable growth.”
Yeah said the review is also aimed at ensuring lower-income groups are more resilient to cost of living pressures in housing, healthcare, education and other key needs.
In terms of the country’s social protection system, the review now takes into account the different risks and vulnerabilities faced by individuals throughout their life-cycle, and formulating guidelines on informal workers for more comprehensive social protection.
A social protection scheme that covers injuries of employees outside working hours, and not related to employment, is also set to be introduced.
“Establishing the minimum floor (for social protection) is an important part of what the government can achieve throughout the remainder of the 12MP,” Yeah said.
The review also focuses on strengthening the healthcare services, with the leasing of medical equipment to be introduced as a bold move in this direction. This initiative will also address the issue of high cost in procuring and replacing medical equipment due to rapid advancement of technology.
Efforts will also be made to increase the supply of quality and affordable housing by improving access and promoting inclusive affordable housing, with a shift in emphasis from ownership to providing shelter.
The Rent-to-Own programme will be expanded to enhance housing accessibility, and collaboration with financial institutions will be pursued to offer attractive and sustainable housing financing packages.
In terms of eliminating hardcore poverty, a total of RM1.5 billion has been approved to mobilise programmes and projects capable of generating income for the targeted group.
Various initiatives and programmes to eradicate poverty are being implemented such as the Program Pemerkasaan Ekonomi Komuniti Bandar, Skim Pembangunan Kesejahteraan Rakyat for rural residents, Program Pembangunan Ekonomi Orang Asli, Program Khas Bumiputera Sarawak, and Program Khas Anak Negeri Sabah.
The government has also launched Inisiatif Pendapatan Rakyat (IPR), a two-pronged strategy that focuses on increasing household income and resolving economic structural issues.
As of Aug 31, the IPR programme received a total of 106,492 applications from individuals looking to market their food products using vending machines and secure equipment and training to produce strategic crops such as chilli and whole grain corn.
The programme also aims to create job opportunities with a decent salary, especially for those involved in the 3D (dirty, dangerous and difficult) jobs, as well as help hardcore poor to generate additional income through agricultural and entrepreneurial activities.
“The IPR is good as it helps lower-income groups market their products, and it has set a new tone on how to eradicate poverty,” said UiTM Sabah public policy lecturer Firdausi Suffian.
“The 12MP mid-term review is also focused on optimising state and rural economies, which will help improve income of the residents there,” he said.
“With the current subsidy rationalisation, this will allow the government to continue with cash assistance programmes, which are coming against the backdrop of the high cost of living.”