FACULTY OF ADMINISTRATIVE SCIENCE AND POLICY STUDIES

UNIVERSITI TEKNOLOGI MARA

CAWANGAN NEGERI SEMBILAN KAMPUS SEREMBAN 3

PAD390

DEVELOPMENT ADMINISTRATION

ARTICLE REVIEW

POVERTY REDUCTION FOR SUSTAINABLE

DEVELOPMENT: MALAYSIA’S EVIDENCE-BASED

SOLUTIONS

STUDENT’S NAME : NUR HAZIRAH AIDA BINTI AZEMI

MATRIX NO. : 2018416114

CLASS : AM110 4B

LECTURER’S NAME : MADAM HAZARIAH YAIS BT. RAZALI

DATE OF SUBMISSION : 30 JUNE 2020

 CONTENTS
1.0 INTRODUCTION........................................................................................................... 1

2.0 POVERTY ERADICATION - MALAYSIAN POLICIES AND STRATEGIES ............. 1

2.1 New Economic Policy (NEP) 1971-1990 .................................................................................... 1

2.2 National Development Policy (NDP) 1991-2000........................................................................ 2
2.3 Vision 2020 .............................................................................................................................. 2
2.4 National Vision Policy (NVP) 2001–2010................................................................................... 2
2.5 Government Transformation Programme (GTP) ....................................................................... 2
2.6 New Economic Model (NEM) ................................................................................................... 2
3.0 POVERTY REDUCTION - MALAYSIAN INITIATIVES ............................................. 3

3.1 eKasih ...................................................................................................................................... 3

3.2 1Azam ..................................................................................................................................... 3
3.3 FELDA ...................................................................................................................................... 3
3.4. 1Malaysia Concept.................................................................................................................. 3
3.4.1 Kedai Rakyat 1Malaysia ..................................................................................................... 4
3.4.2 PR1MA .............................................................................................................................. 4
3.4.3 KAR1SMA .......................................................................................................................... 4
3.4.4 AS 1Malaysia ..................................................................................................................... 4
3.5 PEMANDU ............................................................................................................................... 4
4.0 POVERTY REDUCTION - MALAYSIA ACHIEVEMENT........................................... 4

4.1 eKasih and 1Azam results......................................................................................................... 4

4.2 FELDA Results .......................................................................................................................... 5
5.0 CONCLUSION ............................................................................................................... 5

6.0 REFERENCES................................................................................................................ 6
 Poverty Reduction for Sustainable Development: Malaysia’s Evidence-Based
Solutions [Electronic version]

Normaliza Abdul Manaf and Kamarulazizi Ibrahim (2017)

Normaliza, Kamarulazizi. (2017). “Poverty Reduction for Sustainable

Development: Malaysia’s Evidence-Based Solutions” Global Journal of Social
Sciences Studies, 2017, 3(1): 29-42. Retrieved June 16, 2020 from
http://onlinesciencepublishing.com/assets/journal/JOU0015/ART00166/1493188
842_GJSSS-2017-3(1)-29-42.pdf

1.0 INTRODUCTION

In general, poverty is a condition in which one lacks the necessity of life. In modern
society, poverty is often equated with money shortages. Poverty also occurs in many nations
and religions around the world. With the growing problem of poverty over time, this article
discusses how Malaysia addresses and helps reduce poverty in the country. This article is also
written by the authors with the aim of communicating the strategies, initiatives and
achievements that Malaysia has made since. Furthermore, poverty in Malaysia is largely
associated with the elderly and the disabled, this is due to aging and poor health. Other than
that, poverty can also occur due to the shortage of individuals and also the socio-economic
problems of society. In today's globalized world, the poor can be seen from families or
individuals involved in the B40 group.

2.0 POVERTY ERADICATION - MALAYSIAN POLICIES AND STRATEGIES

From this article study shows that the Malaysian government is working to eradicate
poverty in the country. As such, the government has implemented development plans for the
poor by providing long-term planning, medium term implementation and annual
implementation.

2.1 New Economic Policy (NEP) 1971-1990

According to the article, the implementation of the NEP is an exciting event in

Malaysian history. The impact of the implementation of the NEP provided positive results
which reduced the poverty rate from 49.3% in 1970 to 16.5% in 1990 by focusing on poverty

1
reduction and income differences between ethnic groups, as well as increasing Bumiputera
status by implementing a special program for poverty alleviation.

2.2 National Development Policy (NDP) 1991-2000

After the implementation of the NEP went smoothly, the government implemented the
NDP. The NDP maintained the goals of the NEP, then added other strategies to further
eradicate poverty in Malaysia and also improve the standard of living of the poor or B40 group.
Furthermore, as there are still more Malaysians suffering from poverty, the government bring
the same goals in the new development which is Vision 2020.

2.3 Vision 2020

In this vision, Dr Mahathir has added some of his new goals to support Malaysia as a
developed nation. Thus, all these new goals have influenced the goals of the country. The goal
of eradicating poverty was then to be led to a new development that is National Vision Policy
(NVP).

2.4 National Vision Policy (NVP) 2001–2010

NVP's main objective is to work with the private sector and the government sector to
spearhead economic growth by providing a socio-economic environment. Then the country's
goal of eradicating poverty is to help the population increase to help the less fortunate by
producing a faster economy than the population and also assisted by the People's Welfare
Development Scheme (SPKR).

2.5 Government Transformation Programme (GTP)

In addition, the goals for this new development are closely aligned with the vision of
2020 where the main objective is to become a fully developed Malaysia as compared to other
developed countries. Thus, the GTP can provide an outlet for achieving the objectives of the
2020 vision. Furthermore, Dato' Sri Najib Tun Razak has also introduced two new programs
that will have a positive impact on poverty eradication in Malaysia.

2.6 New Economic Model (NEM)

The New Economic Model has made it clear that Malaysia needs to introduce deep
structural reforms to boost growth. The proposed measures are an important and welcome step
toward a fully developed country. In addition, the most important thing to achieve that goal is
how these principles can be applied to a practicable basis and a strong commitment to many
years of practice. Of all the strategies and goals the government has found, poverty eradication

2
will continue to be one of the top priorities in Malaysia. Therefore, the government needs to
ensure that those who are facing poverty problems are not left behind by the government and
the public too.

3.0 POVERTY REDUCTION - MALAYSIAN INITIATIVES

In this section, the authors explains what the government is planning to do to help the
poor in Malaysia.

3.1 eKasih

The eKasih system is a poor family database system created nationally to help,
implement and monitor poverty programs. In addition, the purpose of this eKasih is to expand
equitable opportunities for women and society in the social, economic and political spheres as
well as strengthen family institutions.

3.2 1Azam

This initiative is a program that portrays opportunities for low-income residents to

increase their household income. The program also includes 5 revenue-generating areas,
namely: Azam Work, Agro Azam, Azam Business, Azam Service and Insurance 1Azam.

3.3 FELDA

The FELDA is a Malaysian government agency that helps the poor in rural areas to
move to developing areas by providing farms for smallholders to earn income for their families.
Basically, the objective of FELDA is to improve socio-economic status rural communities
through open land plots and settlements.

3.4. 1Malaysia Concept

The 1Malaysia concept is basically a program introduced by Dato' Sri Najib to bring
all races and ethnic groups together. This is because Malaysia is a multiracial country and
therefore, the unity that Dato' Sri Najib aims at is to unite every nation in forming a harmonious
Malaysia. Under this Malaysia concept, there are several other programs that will support this
concept which are Kedai Rakyat 1Malaysia, PR1MA, KAR1SMA and AS 1Malaysia.

3
 3.4.1 Kedai Rakyat 1Malaysia

Kedai Rakyat 1Malaysia is focusing on the poor to give them a chance to buy
low-cost household goods is a key objective of launching this store. Basically, it is a
small market with low cost basic household goods.

3.4.2 PR1MA

Furthermore, PR1MA is a program that offers low-income housing for low-

income people with high quality homes.

3.4.3 KAR1SMA

The program aims to provide monthly financial assistance to low-income senior

citizens, poor children, the disabled, single mothers and widows to military and police
personnel. This is so that the group does not feel alienated by society and is able to
continue its survival like the other fortunate ones.

3.4.4 AS 1Malaysia

AS 1Malaysia strives to provide consistent and consistent income while

maintaining long-term shareholders' investment capital.

3.5 PEMANDU

Basically, it is to monitor performance, review growth, and help maintain delivery and
drive the progress of the Government Transformation Program (GTP) and the Economy
Transformation Program (ETP). PEMANDU also is the broadening programs from NEP.

4.0 POVERTY REDUCTION - MALAYSIA ACHIEVEMENT

In this section, the authors cites several successes from programs launched by the
Malaysian government.

4.1 eKasih and 1Azam results

There are many programs that have been run during the establishment of eKasih and
1Azam. Thus, the success of both programs has been very encouraging for the government.
Among the successes that came out of 2011 was the article in the article that the poverty rate
in Sarawak has decreased after the program launched from 4.3% to 3.8%. In addition, a total
of 2,400 units of Rumah Mesra Rakyat have been successfully developed by the National

4
Housing Company Limited (NHC), resulting in low-income residents now able to afford high
quality and comfortable homes. Furthermore, the success achieved in 2012 is that a large
number of people can raise the income by generating RM200 donated by 1Azam while also
striving to strive for a harmonious and comfortable life. Additionally, there is an increasing
number of Malaysians participating in programs under 1Azam to achieve the life they want. In
2013, a large number of residents participated in a program aimed at educating citizens to
manage their finances wisely. Then in 2014, from the funds provided by 1Azam, Malaysians
were able to generate more income.

4.2 FELDA Results

For FELDA, the program launched by FELDA has benefited hundreds of thousands of
people who belong to the poverty-stricken population in Malaysia by increasing their income
for the whole family. Later, FELDA Global Business was formed from FELDA, FELDA
Investment Cooperative (FIC) and FELDA Holdings Berhad (FHB) to become an organization
that helps smallholders by forming agribusiness. Furthermore, the FIC is expected to provide
a source of income from agriculture to supplement their agricultural income. In addition, the
Malaysian government believes that if all Malaysian staff and residents are united in helping
to improve the standard of living for the less fortunate, it will create a great success for all
Malaysians.

5.0 CONCLUSION

The conclusion that I can draw from this very encouraging article is that in order to
eradicate and reduce Malaysians from belonging to the poor, the government and Malaysians
must work together to help the less fortunate. Therefore, all programs launched by the
government as a result of the hard work of the prime minister of Malaysia must be accepted
and supported by the Malaysian people themselves. Although there are many programs from
the government, it is not going well without it. This is because, with every problem in the
country, there is a solution. With multi-ethnic Malaysians, unity and unity are crucial to helping
the government reduce or better eradicate the poor. In addition, the Malaysian government
believes that financially disadvantaged citizens can also improve their standard of living while
ensuring that all Malaysians have an equal standard of living.

5
6.0 REFERENCES

Ambassador, H.H.H.E., 2012. Permanent Representative of Malaysia to the United Nations,

on Agenda Item 24: Eradication of Poverty and Other Development Issues, at the Second
Committee of the Sixty-Seventh Session of the United Nations General Assembly, New York.

Ashri, M.M., 2005. Representative of Malaysia on Agenda item 56: Eradication of Poverty and
other Development Issues (a) Implementation of the First United Nations Decade for the
Eradication of Poverty (1997-2006) at the Second Committee of the 60th Session the United
Nations General Assembly, New York on Tuesday.

Chua, S.-A., 2011. Managing the Present by Standing in the Future in Economic
Transformation Programme A Roadmap for Malaysia, Chapter 1: New Economic Model of
Malaysia Economic Transformation Programme, The Roadmap for Malaysia: A Special
Report, THE EDGE Malaysia.

Datuk, D.R.B.B.Y., 2013. Economic Planning Unit Prime Minister‟s Department Malaysia.;
Multidimensional Poverty Measurement for Malaysia, Presentation in Launch of the
Multidimensional Poverty Peer Network, University of Oxford.

Henry, N.C.T. and H.B. Amir, 2011. Poverty reduction: A continuous social responsibility in
Malaysia. International Journal of Rural Studies (IJRS), 18(2): 1- 4.

Kumaran, R., 2013. Metaphors for Malaysia's economic transformation programme. Kajian
Malaysia, 31(2): 19–35.

Madeline, B., 2003. Towards the national vision policy: Review of the new economic policy
and new development policy among the Bumipatera communities in Sarawak, Kajian
Malaysia, 21(1&2).

Mohamed, S.A.R. and M.S. Arifin, 2012. Statistical sata for Appropriate Poverty
Measurements and Policy f-or Eradication: A Malaysian Case, MyStats 2012 Proceedings: pp:
1-8.

Musalmah, J., 2005. Eradicating rural and urban poverty, Centre for Policy Initiatives (CPI),
MIER .Retrieved from
http://www.mier.org.my/mierscan/archives/pdf/musalmah3_10_2005.pdf

[Accessed 3 October 2005]. National Economic Advisory Council, 2010. New economic
model for Malaysia Part I: Strategic Policy Directions, Malaysia Document.

6
Raja, R.R. and S. Zaib, 2013. Permanent mission of Malaysia to the united nations on Agenda
item 23: Eradication of poverty and other development issues, 23(a): Implementation of the
Second United Nations Decade for Eradication of Poverty (2008-2017) and 23(b): Women in
Development at the Second Committee of the 68th Session of the United Nations General
Assembly, New York, For Immediate Press Release).

Rohayu, R., S.S.S. Noor, Y. Yusmarwati, M. Maziana and R.A.R. Abdul, 2011. Poverty
alleviation among single mother in Malaysia: Building entrepreneurship capacity. International
Journal of Business and Social Science, 2(17). Retrieved from www.ijbssnet.com.

Shamsulbahriah, R.K.A. and M.S.A. Norma, 2013. Chapter 2 narrowing disparities via the new
economic model (NEM): Is Malaysia set to excel beyond its MDGs targets MDGs, (Eds.),
Millennium development goals and community initiatives in the Asia pacific.

Zulkarnain, A.H. and A. Isahaque, 2013. Poverty reduction policies in Malaysia: Trends.
Strategies and Challenges Asian Culture and History, 5(2): 48-56.