By Dato Seri Mustapa Mohamad, Professor Dato Dr Ahmad Ibrahim
Malaysia is a country blessed with abundant natural resources. Logically, there should be no reason for anyone to experience hardcore poverty here. In fact, we were supposed to have achieved developed nation status by 2020. Unfortunately, this goal remains unfulfilled, and hardcore poverty persists within our borders. However, there is hope on the horizon as the government has declared the fight against poverty as almost a jihad.
One cannot ignore Prime Minister Anwar’s long-standing commitment to alleviating poverty, which traces back to his days as a student leader. The Baling protests, where rubber farmers voiced their struggles over plummeting rubber prices, saw PMX among the leading voices advocating for justice. Despite this historical significance, a recent Baling remembrance event revealed that many remain unaware of his contributions during those critical times. After assuming office in 2022, PMX made it his mission to eradicate hardcore poverty in Malaysia by the end of 2023.
Sabah, often highlighted as the state with the highest number of hardcore poor, has recently reported remarkable progress. On July 31, the Sabah government announced the elimination of hardcore poverty in the state. Given Sabah’s wealth of natural resources, including oil palm, oil and gas, and a thriving tourism sector, there is indeed no reason for hardcore poverty to exist there—or anywhere in Malaysia. Efforts in Sabah are spearheaded by various entities such as the State Economic Planning Unit, the Sabah Economic Development and Investment Authority (SEDIA), and the Sabah Ministry of Rural Development, alongside federal agencies.
In addition, universities like the Universiti Malaya (UM), Universiti Malaysia Sabah (UMS), and Universiti Malaysia Kelantan (UMK) are actively contributing by providing input to government agencies and Civil Society Organizations (CSOs) in designing policies and monitoring poverty eradication programs. The decision by the Ungku Aziz Centre (UAC), UM, and UMS to enhance their collaboration in research and share challenges related to poverty eradication is particularly commendable. At a recent sharing session, the UMS Vice-Chancellor emphasized the value of Malaysia’s leading university, UM, teaming up with the younger UMS. This partnership, rooted in the exchange of research findings, challenges, and best practices, is expected to enrich the collective understanding and strategies for tackling poverty.
While UAC focuses primarily on urban poverty, poverty in Sabah is predominantly a rural issue. The challenges of addressing hardcore poverty in rural and urban areas may differ, but the collaboration between UM and UMS will undoubtedly be mutually beneficial. Researchers and academics must amplify their efforts in sharing findings to ensure effective and sustainable solutions. Tackling poverty involves more than merely increasing income levels. It requires a holistic approach encompassing infrastructure improvements, access to quality education, healthcare, credit facilities, and markets.
Universities should take inspiration from the late Ungku Aziz, whose passion for conducting research among impoverished communities provided valuable input to governments, private sectors, and CSOs. This approach can lead to better policies and effective implementation strategies.
Admittedly, crafting policies is the easier part—implementation remains the real challenge. This was evident during the UAC-UMS forum held recently in Kota Kinabalu. One of the significant hurdles discussed was ensuring that project participants genuinely belong to the hardcore poor category. The selection process must be objective and transparent to achieve the intended outcomes. Unfortunately, there have been instances where participants who are not hardcore poor benefited from such programs, undermining their primary objective.
Another challenge lies in the business models for income-generating projects. These models must be realistic and market-driven. Often, such projects are imposed on participants without adequate market research or holistic, end-to-end solutions. Furthermore, changing the mindset of participants presents another major obstacle. Many remain reluctant to move beyond the comfort zone of E-Kasih assistance.
While Malaysia has made significant strides in reducing poverty, the concept of multidimensional poverty—encompassing not just income but also education, health, infrastructure, and other indicators—requires more attention. During the 13th Malaysia Plan (RMK13) period, the Multidimensional Poverty Index (MPI) approach should be translated into actionable strategies to measure and address poverty in a more holistic and accurate manner.
Dato Seri Mustapa is the Advisor for Ungku Aziz Centre for Development Studies (UAC), while Dr Ahmad is an Associate Fellow of UAC, Universiti Malaya.