URBAN POVERTY IN

MALAYSIA –
CONSEQUENCES & Service Delivery
ALLEVIATION STRATEGY System
Ir. Syed Jaafar Idid bin Syed & Public
Abdyllah Idid Perceptions
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Research background

Problem Statements

Research Objective

Contents Research Questions

Research methodology & data collection

Analysis & expected research findings

Suggested Strategy & Action Plans

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Malaysia's official poverty rate dropped from
49% in 1970 to just 0.4% in 2016

Source: EPU, Malaysia SDG Voluntary National Review 2017

Research Background 5
 23 August 2019 - United Nation fact-finding mission
on Malaysia’s poverty rate serves a wake up call for
government to look at the reality of poverty and not
just the statistics
 The illusion of poverty eradication obscures the more
troubling reality that millions of families scrape by on
very low incomes and there is significant hardship
especially in urban areas
 As a result, there has been a significant
underinvestment in poverty reduction, a widespread
misunderstanding of who is poor, neglect of the poor
in many official plans and programs, and an
inadequate social safety net.
 There is a need to understand the nature
of urban poverty on its own.
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 Urban poverty manifests in different ways and is not
restricted to income issues. Urban poverty includes
extreme deprivation resulting in antiestablishment
sentiments as their problems are unaddressed.
 There is an urgent need to use a multi-dimensional
poverty index opposed to the current one of four
Problem dimensions and 11 indicators (Eleventh Malaysia Plan)
Statement as the indicators listed are not very relevant to urban
poverty as they are based on rural poverty indicators
such as access to water and electricity, flush toilets,
access to schools etc.
 There is also a need to move away from general
poverty to relative poverty. Among the B40 grouping,
54% are in the urban areas.
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 This study aims to assess the trends in urban poverty and
urbanization in Malaysia during 1970-2016.
 The study also examines the consequences of rapid
urbanization and urban vulnerable group in the country.
 The study provides new insight about the problems of rapid
pace of urbanization as well as vulnerable people in urban
localities of the country
 The study aims to propose alleviation strategies in handling
Research urban poor in a sustainable mode
Objectives
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 Is the gap of urban and rural

poverty getting bigger?
 What are the impacts on
excessive urban growth?
 Is there a neglect on urban
Research poverty in development planning?
Questions  Is the absence of local democracy
a reason for weak delivery,
accountability & efficiency?
 9  The study collected empirical data on household income,
overall poverty and urban and rural poverty in Malaysia
between 1970-2016.
 The study also gathered cumulative data on urbanization,
rural and urban population in the country during the last few
decades. The data were obtained from the Economic
Planning Unit (EPU), Malaysia and the Department of
Statistics, Malaysia.
 To assess poverty status, the households were divided into
two groups (poor and hard-core poor) based on Poverty Line
Income (PLI) defined by the Malaysian government.
Research  PLI is measured based on the minimum requirements of
household for food, clothing and footwear and other non-
methodology & food items (rent, fuel and power) based on standards set by
data collection the Department of Social Welfare for the requirements of
inmates in welfare homes
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Trend analysis will be conducted to investigate the
trends of poverty incidence at rural, urban and
national level in Malaysia between 1970 and 2016.

Trend lines will be fitted to assess the movement

in rural and urban household income as well as
urbanization in the country during the last three
decades.

Moreover, summary descriptive statistics (mean,

frequency and percentage) will be adopted to
Analysis analyze population distribution in rural and urban
areas during the last few decades

Data will then be organized in Microsoft Excel

spreadsheets and processed and analysed.
Findings of the study will then be presented in
tabular and graphical format.
11 Urban poverty in Malaysia has been considered as an
increasingly visible phenomenon due to the impacts of the
Expected research urbanization
findings
Significant increase of urban population in a short span of
time contributes to high speed of urban expansion

Urban poverty is a dynamic condition of vulnerability 

various problems for local government, especially in fulfilling
the provision of services and infrastructures, creating job
opportunities and providing houses for urban dwellers

Sustainable alleviation strategy is a must to ensure the

effectiveness of specific programs as well as design and best
practice of urban poverty reduction programs and policies
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ELIMINATE
1) Urban from rural poverty
2) Inaccurate poverty indicators
3) Limited access to full
household-level data
Blue Ocean
Strategy
RAISE
1) Awareness on education as a
Strategy strategy to escape poverty
formulation 2) Awareness on motivation,
guidance and development of
mental strength
REDUCE
1) Migration of low-income
groups from rural into urban
areas
2) Influx of foreign workers
3) Unemployment
CREATE
1) Poverty alleviation
programmes from a multi-
dimensional and multi-ethnic
perspective
2) Job or employment
opportunities
13 Issues Strategic Action Indicators of Timeline for
success Implementation
Limited access to To review and ensure Open access Within 1 year from
full household- full household-level database the completion of
level data data accessible by research
researchers
Needs of urban Review the poverty List of updated Within 2 year from
poor from rural are indicator poverty the completion of
different indicators research

Unemployment Training & Rehiring Job Within 3 year from

program opportunities the completion of
database for research
Action Plan the specific
programmes
Lack of motivation Appointment of Measurement Within 5 year from
, guidance and community workers level of trusts the completion of
mental strength for building trust & via research
solidarity, motiving & questionnaires
mobilising people) & interviews
WHERE ARE
WE NOW?

• Rapid economic development

 high speed of urbanization
• Impact - urban diseconomies
• Solution:- Poverty alleviation
programmes from a multi-
dimensional and multi-ethnic
perspective