Happiness and Well-Being Seminar

Institute of Public Embassy of

Administration INTAN Bukit Kiara, Kuala Lumpur Denmark,
2 June 2016 Kuala Lumpur

The Malaysian Well-Being Index

Looking Beyond the Economic
Dimension

Economic Planning Unit

Prime Minister’s Department
Putrajaya
Happiness is a choice
not an achievement
Nothing will make you happy until
you decide to be happy

~ Ralph Marston ~
 Outline
1 The Rationale

2 The MWB Index

3 The Results

4 The Way Forward

Focus on development beyond the economic 1. The Rationale

dimension since 1991 …

2nd Malaysia Plan (MP) 6MP 8MP 10MP
1st Malaya Plan 3MP
2nd Malaya Plan 4MP 7MP 9MP Eleventh Malaysia
1st Malaysia Plan
5MP Plan

New National National National

Economic Development Vision Transforma-
Post Policy Policy Policy tion Policy
Independence, 1971-1990 1991-2000 2001-2010 2011-2020
1956-1970
Growth with Balanced A resilient and New Economic
equity development competitive Model
nation (a high-income
nation, inclusive
and sustainable)

Vision 2020
1991-2020
Total development 4
 1. The Rationale
… Through game-changing policies
National Development
Vision 2020, 1991-2020
Policy, 1991-2000
• Total Development : To be developed in our own Balanced development
mould - economically, politically, socially, spiritually, • Optimum balance
psychologically and culturally between economic growth
• Nine challenges to overcome and equity
– Establishment of a United Malaysian Nation made • Greater material welfare
up of one Bangsa Malaysia imbued with positive
– Creation of a psychologically liberated, secure and social and spiritual values
developed Malaysian society • Balanced regional
– Fostering and development of a mature democratic development for national
society integration
– Establishment of a moral and ethical society • Balanced development of
– Establishment of a matured, liberal and tolerant major sectors
society • Human resource
– Establishment of a scientific and progressive society development
– Establishment of a fully caring society • Development and
– Development of an economically just society protection of environment
– Establishment of a prosperous society and ecology

5
 1. The Rationale
In line with the UN SDGs 2030 and fully mapped out onto the
Eleventh Malaysia Plan strategic thrusts

11MP Strategic Thrusts

Enhancing inclusiveness
1 towards an equitable society

Improving wellbeing for all

2

Accelerating human capital

development for an advanced
3 nation

Pursuing green growth for

4 sustainability and resilience

Strengthening infrastructure
5 to support economic expansion

Re-engineering economic
6 growth for greater prosperity
6
 1. The Rationale
In perspective : The Malaysian Economic Performance

1 Sustainable real GDP growth with low 2 Income per capita has expanded 23
inflation and full employment times since 1970
Real GDP, CPI (% p.a.),
GDP per capita
Unemployment (%)
1971-2015 (% per annum)
18.0 30
• Real GDP: 6.2%
16.0 • CPI: 3.6% US$ (nominal) 25,586
14.0 • Full employment since 1992 25 US$ (PPP)
12.0
10.0
20
8.0
6.0 5.0
4.0
15
3.3
2.0 2.1 9,291
0.0 0.5 0.5 10
-2.0 -1.1 -1.5
-4.0 5 1,085
-6.0 402
-8.0 -7.4
72 '75 '78 '81 '84 '87 '90 '93 '96 '99 '02 '05 '08 '11 '14
0
1970 1980 1990 2000 2010 2015
Real GDP CPI Unemployment rate

Note: Based on GDP (2010 = base year) 7

 1. The Rationale
Significant reduction in poverty

1 Tremendous achievement in 2 Wealth inequalities has declined

poverty eradication

% of Households Gini Coefficient

60 0.391
58.7 2014 0.355
Urban 0.401
49.3 Urban
50
Rural 2012 Rural
0.431
National National
40
2009
0.441
30
21.3 1999
20 0.443

1989
10 8.5 0.442
1.6
0 0.6 1970
0.3 0.513
1970 1980 1999 2012 2014

8
 1. The Rationale
In retrospect – Many initiatives have been undertaken to
measure well-being of Malaysia
By Malaysians By International Agencies
Already established
• Malaysian Well-being Index (est. 2000) Report M’sia’s Performance
(Economic Planning Unit) (2014/2015)
• Malaysian Youth Index (est. 2006) • World Happiness 50/168
(Malaysian Institute for Research in Youth Development) Index
• Family Well-being Index (est. 2011)
(National Population and Family Development Board) • Legatum Prosperity 44/142
Index
• Working Quality of Life Study (2012)
(Malaysian Productivity Corporation) • Environmental 63/178
• Muslim Ummah Development Index (est. 2016) Performance Index
(Institute of Islamic Understanding)
• Human Capital Index 52/124

In progress • Human 62/188

Development Index
• Multi-dimensional Poverty Index
(Economic Planning Unit) • Social Progress Index 46/133
• National Unity Index
(Department of National Unity and Integration)
• Happiness Index
(Ministry of Finance)
9
 Outline
1 The Rationale

2 The MWB Index

3 The Results

4 The Way Forward

 2. The MWB Index
The Malaysia Well-being Index in evolution …
Initially called the Malaysian … before being re-branded in 2013
Quality of Life Index …

In Progress:
Malaysian Well-Being
Report 2016
11
 2. The MWB Index
The Malaysian Well-Being Index : A complimentary
policy tool to monitor developmental progress
Objectives of the MWBI
• To serve as a systematic form of measurement to assess the
impact of development on the well being of the Malaysian
population
• To complement the traditional economic measurement of
development as embodied in various development plans
• To enable proper monitoring and evaluation of total
development in order to achieve effective development planning

MWBI : Adapted definition of well-being

Encompassing personal advancements, a healthy lifestyle, access
and freedom to pursue knowledge
Attaining a standard of living, which surpasses the fulfilment of
the basic and psychological needs of the individual
Achieving a level of social well-being compatible with the
nation’s aspirations
12
 2. The MWB Index
Malaysian Well-being Index : Components
• 14 components and 68 indicators
Financial Institu-
• Composite index of equal weight between components Health tion

13 14

Economic Dimension Social Dimension

(5 components/27 indicators) (9 components/41 indicators) Environ- Family
ment

Equality Quality Social

Culture Health
Partici-
10 pation
1 2 3 7
11 12
Trans- Com- Educa- Gover- Public
Leisure
portation munica- tion nance Safety
tion Health-
Health
8 9 care
Income Level
Services
& Working Housing
Distri- Life
bution
4 5 6
13
 2. The MWB Index
MWBI : Benchmarked against selected
international initiatives

• OECD Your Better Life Index 2012 : 11 dimensions

Education, community, environment, community participation, health,
housing, income, employment, safety, satisfaction of life and work
balance

• EIU Quality of Life Index 2005 : 9 dimensions

Material wellbeing, health, political stability, security, family life,
community life, climate and geography, job security and political freedom

• World Happiness Report 2013 : 6 dimensions

GDP per capita, healthy life expectancy, social support, perceptions of
corruption, generosity and freedom to make life choices

• Human Development Indicator 2013 : 4 dimensions

Life expectancy, expected years of schooling, mean years of schooling
and Gross National Income per capita

14

Malaysian Well-being Index : Indicators (Economic)
1 Transportation (4)
• Road Development Index (RDI) (+)
• Private motorcars and motorcycles
(per ’000 population) (+)
• Road length per capita (km) (+)
• Rail ridership (million) (+)
3 Education (12)
Equality
• Pre-school participation rate (+)
• Primary school participation rate (+)
• Secondary school participation rate (+)
• Tertiary participation rate (+)
Quality
• Literacy rate (+)
• % of graduate teachers in primary school (+)
• % of graduate teachers in secondary school (+)
• National Average Grade (UPSR) (+)
• National Average Grade (SPM) (+)
• Number of lecturers with PhD (+)
• Primary education survival rate (+)
• Secondary education
2. The MWB Index
2 Communications (4)
• Fixed and mobile telephone lines subscriptions
(per ‘000 population) (+)
• Internet suscriptions (per ‘000 population)(+)
• Number of hotspot locations (+)
• Number of domain names (per ‘000 population) (+)
4 Income & Distribution (3)
• Real per capita income (GNP) (RM) (+)
• Gini coefficient based on disposable income (-)
• Incidence of poverty (-)
5 Working Life (4)
• Trade disputes (-)
• Man-days lost due to industrial action (‘000) (-)
• Industrial accidents (-)
• Average working hours (-)
15

Malaysian Well-being Index : Indicators (Social)
6 Housing (5)
• % of low-cost housing units to bottom 40% (+)
• % of households with treated water (+)
• % of households with electricity (+)
• % of households with garbage collection
services (+)
• Crowdedness (no. of persons per room) (-)
8 Governance (4)
• % of corruption cases prosecuted (+)
• No. of e-payment transactions (million) (+)
• % of cases solved by the Public Complaints
Bureau (+)
• % of tax e-Filing users (+)
9 Public Safety (2)
• Crime rate (per‘000 population) (-)
• Road accidents (per‘000 vehicles) (-)
2. The MWB Index
7 Leisure (4)
• No. of households with paid TV subscriptions
(‘000) (+)
• Domestic hotel guests (per ‘000 population) (+)
• Recreational parks visitors (per ‘000 population) (+)
• Cinema goers (per ‘000 population) (+)
10 Social Participation (4)
• % of registered voters (per population aged
21 years and above) (+)
• No. of registered non-profit organizations
(per ‘000 population) (+)
• No. of registered residents association (+)
• Membership in RELA and RakanCop (per ‘ 000
population(+)
16
 2. The MWB Index
Malaysian Well-being Index : Indicators (Social)
11 Culture (4) 13 Environment (5)
• Membership in public libraries (per ‘000 • Air quality (% of station with IPU<50) (+)
population) (+) • Water quality (% of clean river monitored) (+)
• No. of Istana Budaya visitors (per ‘000 • % of forested land (+)
population) (+) • Quantity of scheduled waste generated
• No. of museum visitors (per‘000 population) (+) (tonnes/population) (-)
• No. of Kompleks Kraf visitors (per‘000 • Maximum mean temperature (°C) (-)
population) (+)

12 Health (7) 14 Family (6)

Health level
Family Institution
• Life expectancy at birth (+)
• Divorce rate (% of population age 18 and above) (-)
• Infant mortality rate (per 1,000 live births) (-)
• Domestic violence cases (-)
• Maternal mortality rate (per 100,000 live
• Juvenile crimes (% of population age 10-18) (-)
births (-)
• Non-communicable disease cases (per ‘000
Financial Health
population)(-)
• Mean monthly households income (RM) (+)
• Household debt per capita (RM) (-)
Healthcare services
• Dependency ratio (-)
• No. of beds in hospitals (per‘000 population) (+)
• Population per doctor ratio (-)
• Hospital waiting time for out-patients
(minute) (-)
17
 Outline
1 The Rationale

2 The MWB Index

3 The Results

4 The Way Forward

 3. The Results
The Malaysian Well-being Index 2014*
… but there are areas of concern
Point Change
Component 2000 2014
2000-2014
Economic well-being improved Economic Well-being 100 131 31
faster than social well-being … • Income & Distribution 100 137 37
Index • Transport 100 136 36
135 • Education 100 136 36
Overall
Economic Component • Communications 100 133 33
130
Social Component • Working Life 100 114 14
125
Social Well-being 100 123 23
120 • Housing 100 145 45
• Leisure 100 136 36
115
• Public Safety 100 134 34
110
• Governance 100 133 33
105 • Culture 100 119 19
• Health 100 118 18
100
• Social Participation 100 116 16
'00 '02 '04 '06 '08 '10 '12 '14
• Environment 100 103 3
Note: *Preliminary results • Family 100 100 0 19
The Malaysian Well-being Index 2014* : 3. The Results

Policy response for health

Increase in number of lifestyle Addressing concerns in health
diseases … issues

Cases of non-communicable diseases per Selected health programmes

1,000 population • Improve lifestyle
7.5 ‒ 10,000 Steps Campaign : fitness
programme
7.0
‒ Portal MyHealth : online-based health
6.5 risk assessment
‒ Healthy Community Programme :
6.0
intervention by change agents for high-
5.5 risk NCD cases

5.0

4.5

4.0
'12 '13 '14

Note: *Preliminary results

20
The Malaysian Well-being Index 2014* : 3. The Results

Policy response for environment

Deteriorating environment … Addressing concerns in environmental
issues
Water quality (% of rivers monitored) Selected green programmes
74 • Jelajah Jejak Mesra 1Malaysia :
69 awareness programmes on
64 preserving/appreciating nature
59 • Earth Day Celebration/World Nature’s
54 Day: awareness programmes
49 • Smart Partnership Towards Sustainable
44 Environment : Engagement programmes
39 with strategic Partners of the Department
34 of Environment
29 • Promoting the green industry practices
24
and sustainable industries
'00 '02 '04 '06 '08 '10 '12 '14 • River of Life programme, Love Our River
campaign

Note: *Preliminary results 21

The Malaysian Well-being Index 2014* : 3. The Results

Policy response for family

Addressing concerns in family
Greater stress on the family
issues
institution …
Number of divorces per 1,000 population
Selected family-based programmes
above 18 years of age • 1Malaysia Family First Movement -
2.0
building prosperous, healthy and
resilient families
1.5 • 1Malaysia Women’s Initiative for Self-
Empowerment – entrepreneurship
1.0 opportunities
0.5
'00 '02 '04 '06 '08 '10 '12 '14 Selected youth programmes
Number of juvenile crimes per 1,000 • Annual Youth Festival – training and
population age 10-18 years entrepreneurship opportunities, sports,
3.0 hobbies, entertainment
• Belia Mahir 1Malaysia – skills training
2.0
(formal and non-formal), apprenticeship
1.0 • National Sports Day
• Rakan Muda – Community youth (in-
0.0
'00 '02 '04 '06 '08 '10 '12 '14 situ) development, volunteerism
Note: *Preliminary results 22
 Outline
1 The Rationale

2 The MWB Index

3 The Results

4 The Way Forward

 3. The Results

The Malaysian Well-being Index : Way Forward

Focus on main areas of concerns

• Rising cost of living
• Deterioration in the family institution
• Environmental pollution
• Rise in cases of lifestyle diseases

Areas for improvement for future consideration

• Incorporate subjective well-being component
• Extend analyses to sub-national level

Target a 1.7% annual increase in overall MWBI during

11MP period, 2016-2020

24
 Thank You
Economic Planning Unit
Prime Minister’s Department, Putrajaya
www.epu.gov.my