THE latest movement-control order (MCO 3.0) will affect urban poor families more than the first lockdown in March last year, said Part 4 of the Families on the Edge report.

The report, based on a survey of 500 poor families from 16 people’s housing project (PPR) in Kuala Lumpur, showed that while a range of government policies such as the Prihatin aid packages have made critical contributions in assisting the needy, more than half of the households are still struggling.

The report was commissioned by Unicef and the United Nations Population Fund (UNFPA) to support evidence, informed policies and dialogue on the Covid-19 pandemic.

According to the survey conducted from the end of February till the middle of March, one in three heads of households and four out of 10 female heads of families will have to depend on government assistance to survive MCO 3.0.

Lead author of the report, DM Analytics managing director Dr Muhammed Abdul Khalid, said four out of 10 families have to use their savings to supplement their income.  

“Roughly six in 10 families are unable to provide food for their families and one out of two families are either unable to pay utility bills or rental.

“One in four participants continue to reduce food intake, while one in three families have severe difficulty in providing enough for their children’s school meals,” he said during the launch of the Families on the Edge report.

Putrajaya yesterday imposed a national lockdown starting tomorrow, as cases trended above 3,000 and 4,000 for several weeks.

According to the survey, the families are still struggling to find jobs. Unemployment remains high and earnings remain lower than pre-crisis level.

The report stated that although unemployment among heads of households has fallen since December, it remains at 12%, which is 2.5 times higher than the pre-crisis baseline.

Unemployment among female heads of households stands at 16%, roughly three times higher than the national average.

Muhammed said that 45% of the employed heads of households are not registered with either EPF or SOCSO. 

“It is much worse among the self-employed, where nine in 10 do not have any employment coverage.

“The incidence of informal employment is higher at 34% compared to the national average at 23%. Seven in 10 families claimed they had difficulties with essential expenses.”

The report added that the respondents remain pessimistic about the foreseeable future, mainly due to the lack of employment opportunities.

Muhammed said that the perception that most of the respondents are lazy and expect handouts is not correct.  

“We find that they work longer than the average Malaysian. We have also found that they have properly utilised the funds from the government, such as buying groceries and for their children’s education.”

He said the difference between the first MCO and MCO 3.0 is there was a lot more subsidies given last year.  

“There was rental aid and many other forms of assistance given. But, now they have used up all their savings.  

“MC0 3.0 could have dire consequences. They (the respondents) need more government aid.”

Muhammed added what the families need most is longer-term financial aid. 

“There is already ongoing government assistance. If they (the government) can afford it, it should provide monthly aid.” – May 11, 2021.