Economists say that the midterm review of the 12th Malaysia Plan (12MP) will be key to improving social safety and giving Malaysians better ways to generate income.
Two experts told FMT that the 12MP mid-term review will help eliminate poverty, raise Malaysians’ standard of living, and make it easier for them to get basic services. This is all part of the review’s focus on building a prosperous society.
Yeah Kim Leng of Sunway University Business School said these goals align with the UN’s Sustainable Development Goals (SDGs). The SDGs say that improving health and education, reducing inequality, and boosting sustainable economic growth must go hand in hand with ending poverty and other forms of deprivation.
“We should take stock of the various SDGs like inclusive and equitable quality education, ensuring healthy lives, and decent work for all. It’s important to note that the review aimed at closing the gaps in these areas, which will enable Malaysia to achieve the SDGs by 2030,” said Yeah.
“Lower income groups have been worse off post-pandemic as it has not been easy for them to benefit from the country’s economic recovery. The 12MP mid-term review ensures that there are strategies and programs aimed at the low-income and vulnerable sections of society, which are based on the principles of inclusivity and sustainable growth.”
Yeah said another goal of the review is to make sure that people with lower incomes are better able to handle rising costs for housing, health care, education, and other key needs.
In terms of the country’s social protection system, the review now considers the different risks and vulnerabilities people face at different points in their lives. It is also creating rules for informal workers to make social protection more complete. There is also a social safety plan that covers injuries to workers outside of work hours and has nothing to do with their.
“Establishing the minimum floor (for social protection) is an important part of what the government can achieve throughout the remainder of the 12MP,” noted Yeah.
The review also looks at ways to improve healthcare services. Leasing medical tools would be a big step in the right direction. Because technology changes so quickly, this project will also deal with the problem of how expensive it is to buy and replace medical tools.
Also, efforts will increase the supply of good, affordable housing by making it easier to get to and promoting inclusive, affordable housing. The focus will change from ownership to giving people a place to live.
The Rent-to-Own program will make it easier for people to get a home, and the government will work with financial institutions to offer attractive and long-term housing financing deals.
To eliminate extreme poverty, RM1.5 billion fund will help programs and projects to bring in money for those in need.
Several projects and programs are available to get rid of poverty, such as the Program Pemerkasaan Ekonomi Komuniti Bandar, the Skim Pembangunan Kesejahteraan Rakyat for rural residents, the Program Pembangunan Ekonomi Orang Asli, the Program Khas Bumiputera Sarawak, and the Program Khas Anak Negeri Sabah.
The government has also started Inisiatif Pendapatan Rakyat (IPR), a two-part plan to increase family income and fix problems with how the economy is set up.
As of August 31, the IPR program had gotten 106,492 applications from people who wanted to sell their food through vending machines and get the tools and training needed to grow important crops like chili and whole grain corn.
The program also wants to create well-paying jobs, especially for people who work in “3D” jobs (dirty, dangerous, and difficult). It wants to help the poorest people make more money through farming and business.
“The IPR is good as it helps lower-income groups market their products, and it has set a new tone on how to eradicate poverty,” said UiTM Sabah public policy lecturer Firdausi Suffian.
“The 12MP mid-term review is also focused on optimising state and rural economies, which will help improve income of the residents there. With the current subsidy rationalisation, this will allow the government to continue with cash assistance programmes, which are coming against the backdrop of the high cost of living.”
Economists say that the midterm review of the 12th Malaysia Plan (12MP) will be key to improving social safety and giving Malaysians better ways to generate income.