Professional Documents
Culture Documents
Prof. Dr. Ragayah Haji Mat Zin Institute of Malaysian & International Studies Universiti Kebangsaan Malaysia 43600 Bangi Selangor, Malaysia rogayah@ukm.my , rogayahzin@yahoo.com
OUTLINE 1. Introduction 2. Previous Poverty and Income Distribution Policies: Lacking Inclusion? 3. Malaysias Achievements in Sharing the Economic Pie 4. The New Economic Model 5. Comparative Perspective for Redistribution: NEM versus Previous Plans 6. Concluding Remarks
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Introduction
Malaysia introduced the New Eco. Policy since 1971Outcome on growth, poverty eradication is relatively successful while on income distribution is mixed. Old growth model might no longer be relevant as the country is caught in a middle income trap New Economic Model (NEM) through the ETP that will propel Malaysia to become a high income nation with inclusiveness and sustainability. Inclusiveness: a prerequisite for fostering a sense of belonging. Pro-poor growth--no groups will be marginalized & their essential needs will be satisfiedlive, work & study in localities free from the fear of crime, indignity of discrimination, & anxiety of needenable all communities to contribute to & share in the wealth of the countryensuring that inequality does not worsen.
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Previous Policies
Selected Specific Policies and Programs to Eradicate Poverty & Restructure Society
Education and employment
Export-oriented industrialization Rural Development Restructuring of equity ownership and asset accumulation Others include:
o Entrepreneurship programs o Provision of basic services, infrastructures & housing o NGOs, eg. Amanah Ikhtiar Malaysia (AIM) & Poverty Eradication Foundation.
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Total
Rural
Urban
Kedah
Kelantan Melaka N. Sembilan Pahang P. Pinang Perak Perlis Selangor
7.0
10.6 1.8 1.4 4.0 0.3 4.9 6.3 1.0
1.3
1.3 0.2 0.2 1.0 1.1 1.7 0.04
3.1
7.2 1.8 1.3 1.7 1.4 3.4 7.0 0.7
0.3
1.5 0.2 0.1 0.4 0.1 0.7 1.4 0.1
5.3
4.8 0.5 0.7 2.1 1.2 3.5 6.0 0.7
0.8
1.0 0.1 0.1 0.3 0.1 0.5 0.8 0.1
Terengganu
Sabah/F.T.L Sarawak F.T. KL
15.4
23.0 7.5 1.5
4.4
6.5 1.1 0.2
6.5
16.0 4.2 1.5
0.8
3.7 0.7 0.1
4.0
19.2 5.3 0.7
0.5
4.7 1.0 0.1
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Malaysia
5.7
1.2
3.6
0.7
3.8
0.7
Poverty Incidence by Regions: Pen. M'sia, Sabah & Sarawak, 1970 2009
70 60 50 40 30 20 10 0 1970 1976 1979 1984 1989 1993 1995 1997 1999 2002 2004 2007 2009 Pen Msia Sarawak Sabah
70 60 50 40 30 20 10 0 1970 1976 1979 1984 1987 1989 1992 1995 1997 1999 2002 2004 2007 2009
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Total Chinese
Bumiputeras Indians
11
0.55
Indian Overall
0.5
0.45
0.4
0.35
19 70 19 76 19 79 19 84 19 87 19 89 19 92 19 95 19 97 19 99 20 02 20 04 20 07 20 09
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establishing industry-specific skills centers based on targeted geographic areas; expanding micro-enterprise support programs for BHH40%; enhancing mentor-mentee programs to create additional business opportunities; extending the incubator concept to increase entrepreneurship and employment opportunities; and expanding anchor company programs to enable the formation of partnerships and clusters. 16
Strengthening Social Safety Net to Reduce Vulnerability of Disadvantaged Groups Providing housing assistance programs to deserving poor households in rural and urban areas
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Addressing the Needs of Special Target Groups with Integrated Programs (contd)
2. Providing financial assistance to Chinese new villages residents to upgrade their homes and fund their business activities: Loan schemes by financial institutions to finance payment of premium and leasehold tenure renewal as well as financing the upgrading of their houses and business activities AIM and TEKUN for small businesses
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Addressing the Needs of Special Target Groups with Integrated Programs (contd)
3. Enhancing Access to Basic Amenities and Infrastructure for Estate Workers to Improve Their Living Standards: supply treated water to estates that are 1,000 acres in size or smaller and are located less than five kilometres distance from the main pipeline establishment of village committees (Jawatankuasa Kemajuan dan Keselamatan Kampung) to foster closer ties between residents of estates and nearby villages with district offices collaboration with estate owners in providing access roads and basic amenities such as housing and school facilities training and re-skilling programs for displaced estate workers. 21
New Approach
Poverty eradication irrespective of race. Focus on the bottom 40 percent of Malaysias income strata based on needs
4. 5.
6.
While ethnic perspective still important, now income distribution also viewed from class perspective and as relative poverty Impose conditions to meet specific Market-friendly affirmative action programs quotas or targets.eg education focus on building capacity and capability of low-income households and small businesses Rent-seeking and patronage behavior Transparent, fair and empowering way, based on needs and merit Balanced regional growth. Cluster- and corridor-based eco. activities Towards more equitable income dist higher growth thru eco of scale & agglom. regionally effects, but risk rising inequality Almost free flow of foreign unskilled Retain and attract skilled professionals. workers. Implications : foreign talent displace local workers & widening of inequality ? 22
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