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Malaysia allocates RM20 billion for low-income group, hardcore poverty drops

Malaysia’s hardcore poverty rate falls to 0.09% with RM20 billion in aid programmes, says Prime Minister Datuk Seri Anwar Ibrahim, citing e-Kasih data.

KUALA LUMPUR: The government allocated nearly 20 billion ringgit for various assistance programmes targeting the low-income group this year.

Prime Minister Datuk Seri Anwar Ibrahim said this allocation helped reduce the country’s hardcore poverty rate to just 0.09%.

He stated the allocation covers initiatives including the Rahmah Cash Contribution, the Rahmah Basic Contribution, and assistance from the Social Welfare Department.

“From the data, the remaining 0.09% represents hardcore poverty…that was the figure at the beginning of the year,” he said during the Minister’s Question Time at the Dewan Rakyat.

ALSO READ: Malaysia’s hardcore poverty rate falls to 0.09% in 2024

Anwar confirmed that listed hardcore poverty cases have been resolved through cooperation between federal and state governments and state Islamic religious councils.

“Based on e-Kasih data, the number of hardcore poor households has decreased, and we have the capacity to address the remaining cases,” he added.

He emphasised that eradicating hardcore poverty requires close cooperation with state governments including Kelantan and Kedah.

Anwar noted recent minimum wage increases from 1,200 to 1,500 ringgit and now 1,700 ringgit as part of poverty reduction initiatives.

He highlighted a 25 to 30% salary adjustment for low-income civil servants to reduce relative poverty and narrow income disparities.

“These lower-category civil servants fall within the poor category, though not classified as hardcore poor,” he explained.

Responding to supplementary questions, Anwar revealed that over 80% of Rahmah Basic Contribution recipients have redeemed their 100 ringgit aid.

He noted that more than 2,000 small rural shops now accept transactions under the programme compared to only 180 initially.

“The increase clearly shows that the programme’s implementation has not only eased the people’s affairs but also boosted local economic activities,” he said.

Anwar assured that the government continues to prioritise low-income states and interior regions through targeted programmes.

He stated that Sabah, Sarawak, Terengganu, Kelantan and Kedah record the highest distributions of Rahmah Cash Contribution and Rahmah Basic Contribution aid.

The Prime Minister confirmed aid distribution methods in longhouse areas are being adapted to local community structures.

He explained the government is coordinating the MyKad database with allocation records from various aid agencies to avoid duplication.

“Apart from cash assistance, we are increasing programmes such as Amanah Ikhtiar Malaysia and TEKUN so that families can generate a stable income and not return to poverty,” he concluded. – Bernama

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