LOW-INCOME households in Kuala Lumpur are struggling harder to make ends meet now than during the Covid-19 pandemic, a Unicef report said.

The “Key Findings Living on the Edge” report, which was released earlier this week, said eight in 10 families struggle to meet their basic needs. That is one family more than the seven in 10 during the pandemic.

The report is a follow-up to the “Families on the Edge” study released during the pandemic.

It explores the post-pandemic recovery pathways of households in the context of increased cost of living, recommending strengthened social protection to ensure minimum social protections are available, especially for the most vulnerable.

Data were collected from 755 low-income households in low-cost public housing in Kuala Lumpur, from  October to November 2023.

“Ensuring post-pandemic recovery means caring for the most vulnerable: low-income families, especially households headed by women and individuals with disabilities.

“Life isn’t solely about sustenance but also about the quality of life. Investing in both ensures that children and families not only survive but flourish, nurturing a future where every individual has the opportunity to bloom,” said Unicef Malaysia social policy chief Juanita Vasquez-Escallon.

The report showed that while families have recovered in terms of employment and income, poverty persists with 41% experiencing absolute poverty and 17% facing hardcore poverty.

“This is especially prevalent among female-headed households and households headed by people with disabilities.

“Increasing living costs have exacerbated hardships, with eight out of 10 families struggling to meet basic needs, resulting in extreme choices like reducing food intake.

“The impact on mental health is noticeable, with one out of four experiencing depression, notably higher than during the pandemic,” added the report.

It was found that increased food prices have a real impact on most low-income households (90%), forcing them to make extreme choices, including reducing food intake. One in two children are now reportedly eating less than three meals a day.

While school fees have not changed, associated costs such as transport, pocket money, extra-curricular activities have grown, leading to heightened concern of parents about the accessibility and quality of education.

As a response to higher cost of living, families are working harder and spending less. This results in a negative impact on the mental health of respondents. Three in four feel adverse effects on mental wellbeing, and one in four experience depression, which is higher than during the pandemic.

Unicef recommendations

Based on the findings in the report, Unicef recommended that the government provide a RM200 montly allowance for pregnant mothers, up until the child is two.

It said the government could also pay an universal allowance to people with disability to provide an adequate level of income security.

Concurrently, there should be extended allowance to the primary caregivers, who are mostly women, of disabled family members.

Unicef said the government should extend assistance to those below the poverty line income, or those households with monthly income less than RM2,589.

Currently, assistance is only given to households earning RM1,198 per month.

The UN agency said the government could also improve sexual reproductive health and rights awareness and mental wellbeing.

It said community outreach programmes must be expanded to equip men, women and families with essential knowledge, facilitating early planning, informed decision-making and ensuring access to preventive care.

“There is also a pressing need to bolster community-based interventions, including support groups, to effectively tackle mental health challenges and cultivate overall mental well-being in communities.”

Unicef said Putrajaya should increase the minimum wage to RM2,287 instead of RM1,500 per month. This is to take into consideration key factors such as cost of living, poverty line income and productivity.

It noted that the current living wage as proposed by Bank Negara Malaysia is RM2,700.

Overcoming poverty

In February, Prime Minister Anwar Ibrahim announced that abject poverty had been eradicated in Malacca, Negri Sembilan and Kuala Lumpur.

It is a stated goal of his government to get rid of hard-core poverty across all races in the country.

“In Kuala Lumpur, although the majority is Malay, the ratio by population shows that the (poverty) status of Indians is high. We will assist every family in Kuala Lumpur to come out of hardcore poverty. This is our approach..

“Every hardcore poor issue, no matter Chinese, Malay or Indian, has been resolved in Kuala Lumpur, Malacca and Negri Sembilan.”

He said the eradication rate was 100%.

In November last year, Economy Minister Rafizi Ramli said the hardcore poverty rate had dropped to 0.2%, affecting 18,445 households, compared to 1% in 2020.

For 2022, the government at the time said the number of households classified as hardcore poor had fallen to 129,395, compared to 260,000 in 2021, at the height of the pandemic. – May 9, 2024.