Poverty – my definition or yours?


THE Malaysia Debt Clock shows a figure of RM754 billion, but with a proviso – the data is now questionable. The government says the total is more than RM1 trillion. Last month, the Special Parliamentary Select Committee on the Budget reported that it stood at RM741 billion at the end of 2018.

So, we have two figures and definitions for debt. Now, we also have two figures and definitions for poverty.

The economic affairs minister said Malaysia stands by its official poverty rate of 0.4%, as it is derived from internationally accepted standards based on the second edition (2011) of the Canberra Group Handbook on household income statistics.

The United Nations special rapporteur on extreme poverty and human rights said the figure is inaccurate, suggesting a more realistic rate of 16% to 20%, since about 9% of households survive on less than RM2,000 per month.

We can be disappointed and dismiss the remarks made, but is the minister aware of the existence of the Bottom 40%, the Food Bank Malaysia and Food Bank Siswa programmes, and the many soup kitchens in Kuala Lumpur? And, the popular BR1M aid!

Many university students can’t even afford to spend RM10 a day on food. Not that they are lazy and refuse to take up part-time jobs, but coursework for most of them is demanding.

The rich may not know, or pretend to not know, the meaning of poverty or being poor. Either they were born rich, or they have forgotten their poor beginnings.

Interestingly, the prime minister’s economic adviser said one in five Bumiputera households is poor, while one in 10 Chinese and Indian households is living in poverty. Our poverty line index (PLI) is about RM8 per person per day. For comparison, Zimbabwe and Palestine have higher PLIs.

For more than three decades, the poverty and income distribution data has shown that poverty in Malaysia retains much of its original characteristics, and income distribution patterns show interethnic inequalities and a worsening position for certain ethnic groups.

Not many will recall the “sarong index”, introduced by Professor Ungku Aziz as a measure of rural Malay poverty. Count the number of sarongs in a household, and divide it by the number of tenants (excluding infants). The smaller the number, the greater the poverty. He pinpointed “exploitation” and “neglect” by the British colonial administration as the primary causes of poverty. Others include exploitation by middlemen and moneylenders that affects the income of the rural poor.

Although we have done quite a bit to reduce poverty in the last 50 to 60 years, being in denial affects policy decisions moving forward, and to correct them later will not be easy, since resources would have been diverted and the poor would just get poorer.

Income is not the only way in which the concept of economic well-being can be characterised. It is imperative to consider the broader conceptual issues, including from the perspective of producing reliable and relevant income distribution data. Further, it is important to differentiate between the data collection unit and data analysis unit.

For a start, it would be good if the economic affairs minister can begin talking to the ministers for education; rural development; women, family and community development; and, youth and sports, to gauge the level of poverty in the country. Work with them and civil society groups to prove that the 0.4% rate stands good. Otherwise, take heed of the prime minister’s advice and the suggestions given by the UN special rapporteur. The prime minister’s economic adviser should be consulted, too. And of course, the prime minister-in-waiting, since he will be carrying the flag sooner or later, God willing.

The previous administration was in denial mode, but in the last general election, we changed the government.

For both poverty and debt levels, we need only one figure and definition, so that our beloved country can march forward with focus, and not worry and confuse Malaysians and the world about which one to use. What say you? – August 27, 2019.

* Saleh Mohammed reads The Malaysian Insight.

* This is the opinion of the writer or publication and does not necessarily represent the views of The Malaysian Insight. Article may be edited for brevity and clarity.


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Comments


  • Then why the heck our a*seholes in the cabinet introduce ....... "khat"...... ?

    So that we can export handicrafts made by perpetually poverty stricken minimum waged artisans whose other income is BSH (or BR1M)?

    Whereas other countries introduce computer coding (and other modern era lessons) to produce IT professionals and even a potential Bill Gates!

    Posted 4 years ago by Malaysian First · Reply