MOVEMENT controls imposed to curb the spread of Covid-19 have exacted an economic, mental and educational toll on poor families living in low-cost flats, a study by the Unicef and the United Nations Populations Fund (UNFPA) shows.

Besides poverty, what little savings poor households have are depleting rapidly, while their children have lost access to nutritious food provided in schools.

Overall, the study found that one in two families living in low-cost flats is in absolute poverty as a result of the Covid-19 crisis.

Poverty among children in these types of public housing is also 97% and 100% in households with disabilities, said the study, the second instalment of the Families on the Edge report.

Released today, the study is a follow-up to an earlier one on the impact of Covid-19 on 500 families living in low-cost flats in Kuala Lumpur.

The root cause of poverty is unemployment, said economist Dr Muhammed Abdul Khalid, the managing director of DM Analytics, which partnered Unicef and UNFPA on the study.

“Overall, out of 100 Malaysians, five are not working. But among 100 young adults in low-cost flats, 35 are not working.

“Almost one in three young adults in low-cost flats is not working,” he told The Malaysian Insight in a special preview on the study’s launch.

“Unemployment” is defined as people actively looking for jobs and also covers those not actively looking for work.

“Inactive unemployment is very high, especially in female-headed households of families with disabilities,” Muhammed said.

Dwindling income, savings

Various levels of movement controls have been in place in Malaysia since March 18, with the strictest measures and almost zero economic activity except for essential services in the first two months.

Despite the gradual lifting of restrictions, poor households have been pushed further to the brink. Currently, the conditional movement-control order (CMCO) is in place in Selangor, Kuala Lumpur and Putrajaya.

In terms of incomes during the pandemic, median household income increased by 23% during the recovery MCO to RM2,233.

But this is still about 10% lower compared to last year, Muhammed said.

Savings have also shrunk among single mothers, whose average savings stand at RM342, while households with disabilities have an average savings of RM72.

These meagre figures contribute to the poverty rate among low-cost flat dwellers, where 52% fall under the classification. 

In contrast, the national poverty rate last year was 5.6%.

“Savings are slowly being depleted… 70% of families have zero savings,” Muhammed added.

The report also found that 45% of those currently working do not have an Employees’ Provident Fund (EPF) or Social Security Organisation (Socso) savings.

The figure is higher among working female heads of households (51%) and household heads with disabilities (73%).

“Also, make it compulsory for those who start small businesses to register for EPF and Socso because currently, it is optional.”

No school, no meals

After months of lockdown and frequent school closures, the survey also found that one in five parents reporting that their children have lost interest in school. 

Muhammed said this, in turn, has an impact on the children’s diet and physical development.

“A lot of children living in low-cost flats have stunting issues, health issues. 

“The government previously gave them food assistance in schools but schools are closed at the moment.” 

Even when schools reopen, poor families struggle with the education cost. 

The children, too, faced immense stress trying to catch up with the syllabus as they have problems accessing online classes, the study found.

Worsening mental health

One in five heads of households and roughly one in three female-headed households also reported feeling depressed, the study said.

“The parents, due to income and job issues, said they are very worried about the future of children, especially their education.

“There is a rising issue of mental health. A majority of single mothers and disabled are very stressed.”

Budget 2021 needs to provide immediate assistance to these poor families, he said, in addition to long-term policies in the 12th Malaysia Plan that is to be tabled next year.

“Assistance coverage can be improved, in particular for the self-employed, given that only 2% applied for the Prihatin aid.” – October 30, 2020.