KUALA LUMPUR: A multi-dimensional index and a dynamic policy are essential to help the government eradicate poverty, according to Prime Minister Tun Dr Mahathir Mohamad (pix).
He said there was a need to determine the different types of poverty before the problem could be addressed.
“We used to draw a line and say those above the line are no longer poor. However, this does not apply today,” he said at the launch of the Community Development Fund by Yayasan Sejahtera in conjunction with International Day for the Eradication of Poverty Forum here today.
Over the past few months, various authorities and experts have questioned the method use to measure poverty in Malaysia.
In August, the prime minister’s economic advisor Dr Muhammed Abdul Khalid said the current method was outdated.
He said the poverty line income (PLI) rate of RM980 for Peninsular Malaysia, RM1,180 for Sabah and RM1,020 for Sarawak was too low.
Based on this rate, he pointed out, there would be zero poverty in states such as Malacca, Johor and Selangor.
The United Nations Special Rapporteur on extreme poverty and human rights, Prof Philip Alston, said Malaysia’s official estimate that only 250,000 households, or just 0.4% of the population lived in poverty was unrealistic.
At today’s event, Mahathir said the government aimed to eradicate poverty by 2030 but that could be achieved only with help from the private sector.
He said the problem stemmed from the attitude of some people from certain communities who were happy with what little they had achieved.
The prime minister said one way of dealing with poverty was to help people acquire specific skills to meet the demands of the job market in the urban areas.
“Another way is to provide these people with business skills. However, the problem arises when they have made enough money to support their families,” he said.
“They have no interest in expanding their business to make more money. That is what is holding them back,” he added.
As a result, he said, small and medium size enterprises remain static. The owners do not make any attempt to expand and grow their businesses, he added.
“It is only by educating them on the need to grow their businesses will we see a change. These people need to understand that one way to lift their families out of poverty is to grow and expand their business,” he said.
Mahathir said the phenomenon of people emigrating from the rural to urban areas to look for work was a global problem that everyone had to deal with.
“The problem arises when they don’t have the proper qualifications or ready jobs. Urban poverty, therefore, is just a reflection of rural poverty,” he said.
Mahathir also urged the private sector to donate to the Community Development Fund, which is managed by Yayasan Sejahtera.
The foundation uses a community-based approach to deal with poverty. To date, it has helped more than 12,000 people.
