Eradication of Abject Poverty Malaysian Experience
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Transcript of Eradication of Abject Poverty Malaysian Experience
ERADICATION OF ABJECT POVERTY AND STREET BEGGING: MALAYSIAN
EXPERIENCE
Dr Nik Rahim bin Nik Wajis
Senior Lecturer, Faculty of Syariah and Law
Islamic Science University Malaysia
Phone: +6014 820 7111
Email: [email protected]
1.0. Introduction
The Federation of Malaya gained independence from the British government and declared its
independence on 31st August, 1957. Malaysia is a multi-racial and religious country.
Population of Malaysia by age, sex and ethnic group, in February 2014 had reached 30
million according to Malaysia Statistics Department. The Department also stated that as at
2010, Bumiputras 1 make up 67.4% of the population, Chinese (24.6%), Indians, (7.3%), with
other races making up the remaining 0.7%. Malaysia was developing from an agricultural
country towards a developed industrial country by year 2020. 2
Even though Bumiputras which include Malays represent the largest number of population,
the economic and commercial sector. An estimated 70% of the Malaysian economy
dominated by Chinese who reside mostly in urban areas as a result of British colonization. 3
1- Bumiputera or Bumiputra is a Malay term widely used in Malaysia, embracing indigenous people of the Malay Archipelago. The term comes from the Sanskrit word bhumiputra, which can be translated literally as "son of land" (bhumi= earth or land, putra=son). It is also translated as "sons of the soil".In the 1970s the government implemented economic policies designed to favour bumiputras (including affirmative action in public education) to create opportunities, and to defuse inter-ethnic tensions following the extended violence against Chinese Malaysians in the May 13 Incident in 1969. These policies have succeeded in creating a significant urban Malay middle class. They have been less effective in eradicating poverty among rural communities. Some analysts have noted a backlash of resentment from excluded groups, in particular the sizable Indigenous Non-Muslim Orang Asli, Chinese and Indian Malaysian minorities. Source: http://en.wikipedia.org/wiki/Bumiputera_(Malaysia)2- http://www.thestar.com.my/News/Nation/2014/02/26/Malaysia-30-mil-population/3 - Malaysian Chinese are a socioeconomically well established middle-class ethnic group and make up a highly disproportionate percentage of Malaysia's professional and educated class, with a record of high educational achievement, a high representation in the Malaysian professional white-collar workforce, and one of the highest household incomes among minority demographic groups in Malaysia. Like in much of Southeast Asia, Malaysian Chinese are dominant in both the business and commerce sectors, controlling an estimated 70% of the Malaysian economy. http://en.wikipedia.org/wiki/Malaysian_Chinese
1
Therefore, when we discuss about abject poverty and street beggars it will be very much
focused on the races other than Chinese as the majority of them live in more comfortable lives
if compared to other races.
In this article the discussion regarding abject poverty and street beggars will be discussed
separately in order to understand the issues in a better and clearer pictures.
2.0. Definition of Poverty
Poverty is a multifaceted phenomenon and different societies have different perceptions of
poverty. There are three main classifications of poverty. Firstly, the absolute poverty
concept, one is having less than objectively-defined thresholds. Secondly, the relative
poverty concept, one is having less than others have in the same society. Thirdly, the
subjective poverty concept, one is feeling that he or she does not have enough to get along.
Literatures have shown that different poverty concepts are related to the development status
of the countries; calorie poverty (absolute) in less developed countries, expenditure or basic
needs (absolute) in developing countries, relative poverty in emerging economies and
subjective well-being in developed countries. Absolute poverty may disappear as countries
and regions become richer, but the relative deprivation and subjective poverty would persist.
In a diverse country like Malaysia with vast regional differences, a person in Sabah and
Sarawak (the highest poverty rate) might perceive poverty as the deprivation of basic needs
while a person in Selangor (the most developed state) might perceive poverty as the relative
deprivation. 4
The absolute poverty concept, can also be defined as (a) a person who is found begging in a
public place in such a way as to cause or likely cause annoyance to the prevailing visit that
place or to cause nuisance; or
(b) an idle person found in a public place, whether or not he beg, who do not have visible
means of subsistence or shelter or which cannot be said so himself satisfactory; 5
Some scholars defined poverty as those who do not have sufficient basic needs such as food,
shelter, clothes for a period of 1 year. 6
4 - Mohamed Saladin Abdul Rasool And Arifin Md Salleh, Statistical Data For Appropriate Poverty Measurements And Policy For Eradication: A Malaysian Case, Jurnal Ekonomi Malaysia Vol. 44 (December) 2011, Universiti Kebangsaan Malaysia (UKM).
5 - http://www.agc.gov.my/Akta/Vol.%204/Akta%20183.pdf6 - http://books.rafed.net/view.php?type=c_fbook&b_id=275&page=129
2
3.0. Breakdown Poverty Level Among Population (Malay, Chinese, Indians and
Other races)
Based on the information collected from the website of Economic Planning Unit, the statistics
of poverty decreased every year since 1984. Based on the statistics, it shows that the Malays
and Bumiputeras are the highest in poverty, and the lowest are the Indians.7
However, poverty among Malay households shrank from about 17 per cent to three per cent,
while for the Chinese it dropped from about three to one per cent. For Indians it was reduced
from about six to three per cent and for non-Malay Bumiputeras, it fell from about 33 to 16
per cent. 8
The UN report also said the 2008-2009 global economic crisis had caused the national
poverty rate to rise to 3.8 per cent of citizen households in 2009, representing an estimated
228,000 households and an increase from 210,000 households in 2007. 9
4.0. Breakdown Poverty Level Based on States in Malaysia
Most of the abject poverty happens in the rural places in Malaysia. The report found that
Sabah had the highest poverty rate in the country at 19.7 per cent followed by the state of
Kelantan which is 15.5%, and Kedah which is 13.5. The lowest percentage of abject poverty
in Malaysia in 1984 is Kuala Lumpur which is 1.4%. 10
5.0. Government Efforts in Eradicating Poverty / Abject Poverty
In Malaysia, the government has provided many ways in helping the people that are living in
poverty, and those who are homeless. The followings are the efforts that had been carried for
that purpose.
7 - http://www.epu.gov.my/household-income-poverty8 - http://www.themalaysianinsider.com/malaysia/article/malay-poverty-share-falls-other-bumis-still-lagging#sthash.AQPfCsE4.dpuf
9 - Ibid10 - Ibid
3
5.0.1. Introduction of Minimum Wage
In terms of the people’s income, National Minimum Wage Initiative was announced by the
Prime Minister in the Budget presentation on 15 October 2010. It is one of the policy
instruments through the New Economic Model (NEM) to transform Malaysia into a high
income nation inclusive and sustainable by 2020. This policy aims to ensure that employees
are able to meet basic needs and provide the appropriate atmosphere for the industry in
improving their production value chain. The policy is contained in the National Wages
Consultative Council Act 2011 and the rate recorded in the Minimum Wage Order 2012
which came into force on 16 July 2012 as listed below. The minimum wage is the base salary,
not including any allowances or other payments. Minimum Wage Policy also covers workers
who are paid by piece-work, tons of trips or commissions. Employers are required to pay
these workers if they do not reach the income of RM900 (USD273.00) per month in
Peninsular Malaysia and RM800 (USD 243.00) in Sabah, Sarawak and Labuan. With this
policy, there will be no exploits or low payment job, therefore, the people that are in poverty
can have a better life. 11
5.0.2. Low Cost House Project and Financial Assistance
The Malaysia government also launches a low cost house project, which may help the poor to
afford living in a proper house which is called “My Home Scheme”. This scheme gives the
people with a low income to buy a low cost house with a maximum subsidy, RM30, 000
(USD9120.00) This scheme is provided for those who have an income below RM3000
(USD912.00).
The government also launches a similar project, PBR (Program Bantuan Rumah) .This
program provides financial assistance and management to enable the target groups to occupy
the house safer and more comfortable than the previous residence. The goal of the program is
to improve their quality of life immediately. 12 The target group for this program is the abject
poor who are registered with e-Kasih system or SSPKR. Priority will be given to:
1. The elderly
2. Elderly and disabled
3. Single parents with many dependents.
11-http://minimumwages.mohr.gov.my/majikan/mengenai-dasar-gaji-minimum-malaysia/?lang=my12 - http://www.rurallink.gov.my/program-bantuan-rumah
4
5.0.3. Home for Homeless
The government had made a place called “Anjung Singgah” in an effort to help the homeless
to provide space for them to live independently. It provides temporary shelter, food and a
center set up interventions to prepare them to face the challenges of life. Individuals,
Corporate Companies and anyone who is interested to join together to help the homeless are
welcomed. 13
5.0.4. One-off Cash Payment
During the recent Budget 2012 presentation, the Government has announced to give out a
one-off cash payment of RM500 (USD152.00) to households with an income of less than
RM3,000 (USD912.00) a month. This assistance is one of the various initiatives undertaken
by the Malaysian government to alleviate the burden of low-income earners in facing the
rising cost of living.
An eligible household refers to a man or woman who holds lead responsibility for all those
living in the household. This includes individuals who are:
1. Married including married children living with parents;
2. Single mothers or fathers with dependents;
3. Single individuals (bachelor, divorcee, single mother) with dependents; and
4. Senior citizens without commodity.
Recipients of assistance under Jabatan Kemajuan Masyarakat are also eligible for 1Malaysia
People’s Aid (BR1M).
Also automatically eligible for 1Malaysia People’s Aid (BR1M) are the registrants of the e-
Kasih programme.
And for the 5.2 million households earning less than RM3000 (USD912.00) a month, the
RM500 (USD152.00) assistance will bring about a significant change. 14
13 - www.yknm.org/#!anjung-singgah-ykn/cdsh14 - http://www.barisannasional.org.my/en/br1m
5
5.0.5. Creating Jobs
1AZAM Movement Program consists of four components, namely AZAM Tani, AZAM
Niaga and AZAM Kerja and AZAM Khidmat initiatives aimed at creating jobs and
entrepreneurship, in line with the government's efforts to eradicate abject poverty.
Consistent with the goal of reducing the poverty rate to 2.8 percent by the end of 2010, efforts
were made to strengthen the earning capacity of the rural poor.
The report said the government has established the People's Welfare Development Scheme
(SPKR) to implement programs to increase the income, skills training and capacity building
as well as provide Excellence in Education Program in order to help the disabled.
In addition, the government continues its efforts to provide affordable housing and repair
dilapidated houses under the Housing Assistance Program to benefit 1,368 households.
In the meantime, until July of this year, a total of 3,255 women underwent skills training and
entrepreneurship programs under the Department of Women and Ikhtiar Malaysia (AIM).
Ministry of Federal Territories and Urban Wellbeing has launched a Strategic Plan for the
period 2010 to 2014 to address urban poverty in a holistic manner, including providing
assistance to households with income below RM3,000 per month.
To support the urban poor into a small business, the government introduced the Urban Micro
Credit program managed by AIM and take advantage of 16.907 applicants in the first eight
months of this year.
According to the Economic Report, continued efforts have been made to provide affordable
housing to the people, especially the lower and middle income by launching a scheme that
allows contributors Flexible Spending Employees Provident Fund (EPF) using your existing
account to obtain funding two more high.
In addition, the government also established the Housing Credit Guarantee Corporation
(SJKP) to guarantee bank loans for those without fixed income as well as offering low-cost
houses to be sold to current tenants by the Kuala Lumpur City Hall (DBKL).
6
5.0.6. 1Malaysia Clinics
In addition to increasing revenue, the government has also focused on health aspects in which
the focus was on building and upgrading hospitals and clinics. A total of 51 premises have
also been modified to 1Malaysia clinics in selected urban areas in Selangor, Kuala Lumpur,
Penang and Johor.
5.0.7. Community Rehabilitation Program
In the meantime, the government remains committed to providing welfare assistance to
persons with disabilities (PWDs) through the implementation of the Community
Rehabilitation Program and increase the monthly allowance of RM50 to RM150 for each
disabled children enrolled in special education schools run by non-governmental
organizations (NGOs ).
5.0.8. Investment Tools
To provide investment opportunities and improve people's income, the government has issued
Sukuk 1Malaysia which guarantees a rate of return of 5.00 per cent per annum to be paid
quarterly and provides flexibility to shareholders to buy and sell before the maturity date.
5.0.9. 1Malaysia Retirement Savings Scheme
To help the self-employed and those without fixed income, the government has introduced the
1Malaysia Retirement Savings Scheme with a minimum contribution of RM50 to RM5,000
per month.
5.0.10. Deveoping Waqf (endownment)
To develop waqf property, a total of 69 areas were identified as having potential for
development Endowments Endowments Mart and Bazar Rakyat to the benefits of Muslims,
especially those who qualify through income generation as well as education and social
welfare programs. 15
15 - http://kklw.bernama.com/news.php?id=535615
7
5.0.11. 1Malaysia Shops
Kedai Rakyat 1Malaysia was inspired by Prime Minister of Malaysia due to his concern over
the increasing cost of living affecting the low income rakyat living in the urban areas. Based
on a mini market format, Kedai Rakyat 1Malaysia provides various basic necessities at low
prices in convenient urban locations. Kedai Rakyat 1 Malaysia is part of the 1Malaysia
initiative, initiated by the government. 16
Before 1970, Malaysia's development policies aimed primarily at promoting growth with
more emphasis on the export market. Although the economy grew rapidly during this period
at an annual average of 6.0 per cent, there is a lack of emphasis in terms of distribution,
resulting in an imbalance between ethnic groups with a negative impact in the form of social
unrest in the 1969 race.
The launch of the New Economic Policy (NEP) in 1971, a history of Malaysia's economic
plan. NEP emphasizes the importance of achieving socio-economic objectives in line with the
objectives of economic development as a way of creating harmony and unity in the country
with many ethnic groups and religions. The main goal is the unity of the country. To achieve
this goal, two main strategies have been established:
To reduce poverty, irrespective of race through rising income levels and increasing
employment opportunities for all Malaysians.
To restructure society to improve the economic imbalances to reduce and eventually eliminate
the identification of race with economic function.
One important aspect of the NEP is located in the premises of a rapidly growing economy.
The development is a necessary condition to provide opportunities for the poor and
disadvantaged to enable them to escape from poverty and participate in mainstream economic
activities. Furthermore, it ensures that the distribution does not occur on the reallocation of
existing wealth, but of development and new sources of wealth. Implementation of strategies
for eradicating poverty and restructuring society to produce significant improvements in the
distribution of income by 1990. The rate of households living below the poverty level
declined from 49.3 percent in 1970 to 16.5 percent in 1990 and declined further to 5.1 percent
in 2002.
16 - http://www.kedairakyat1malaysia.com.my/
8
In terms of corporate equity restructuring, more than two-thirds of Malaysia's corporate equity
owned by foreigners in 1970, while the indigenous, native people who represent two-thirds of
the population, has only a little more than 2 percent. NEP targets a restructuring of 30:40:30,
where by 1990, holding that the natives should reach 30 per cent, other Malaysians and
foreigners 40 percent to 30 percent, in the context of a growing economy. In 1990, the
Bumiputera equity rose to 20.4 percent of total corporate equity, and other Malaysians
holding increased to 46.8 per cent and 25.1 per cent for foreigners. While Indians did not
reach the target of 30 per cent equity by 1990, the progress made by them are quite large
compared to their position in 1970. By 2002, due to the amount of the equity to grow rapidly,
holding all groups increased in absolute value. While the foreigners fell to almost one-third,
its value increased 30-fold compared with their position in 1970. The poverty reduction
strategy Malaysia has always focused on human resource development and quality of life
improvements. Related programs emphasize income generating projects and not welfare,
except in exceptional cases where direct assistance given. 17
5.0.12. Departments responsible for Eradication of Poverty
The government had tried their best to eradicate poverty in Malaysia. Some of the
departments that are responsible for eradication of poverty are the Minister of Federal
Territories, which carries the mission to lead the progress and development, improve the
quality of life and eradicate poverty in Federal Territories. Some of the objectives of the
Minister of Federal are generates sustainable economic growth through a sustainable Federal
Territories Development Plan for the creation of more job opportunities, minimizes the
problem of hard core poverty in Federal Territories through programs which can increase the
income levels of the people and establish more residential areas which are conductive for the
comfort and well-being of people of all walks of life. The Ministry of Federal territories was
established in 1979 to carry out the duties and functions as set out in Ministerial Functions
Act 1969. At that time, the Ministry of Federal Territories also served as the planning and
development coordinator of Kuala Lumpur and the Klang Valley in line with the
establishment of the Klang Valley regional planning Council and Klang Valley Regional
Planning Working Committee. The restructuring of the cabinet on 27 March, 2004 has seen
the Ministry of Federal Territories re-established to give special attention to the development
of the Federal Territories (Kuala Lumpur, Labuan and Putrajaya ) in addition to being
responsible for coordinating the Klang Valley planning in the Ministerial Functions Act 1969
17 - http://www.epu.gov.my/dasar-ekonomi-baru
9
( current amendment) . On 23 October, 2009, during the 2010 Budget presentation, the
Honorable Prime Minister announced that the functions and responsibilities of the Ministry of
Federal Territories were strengthened and expanded to eradicate urban poverty across the
Country and to implement urban wellbeing programs. Accordingly, on 13 November 2009,
the Ministry of Federal Territories was officially known as the Ministry of Federal Territories
and Urban Wellbeing. 18
Social Welfare Department also is a government department that focus on those who are
homeless and in need of protection can be defined as the destitute under the Destitute Persons
Act 1977. 19 The Department of Social Welfare periodic and ad-hoc persisted for rescue
operations comprising destitute beggars and the homeless . 20
5.1. The Roles of NGO’s in Eradicating Poverty
In eradicating poverty, the Non-Government Organizations (NGO) also plays and important
role in helping the government to counter the problem of poverty in Malaysia. There are lots
of NGO that are helping the homeless and beggars in Malaysia, some of them are Institut
Memali, The Nasi Lemak Project, Brickfields Stakeholders Association, Need to Feed the
Need (NFN), CFC, Pax Romana ICMICA, Dapur Jalanan, Persatuan Kesedaran Komuniti
Selangor, Dignity International, Food Not Bombs Kuala Lumpur, Reach Out Malaysia, KL
Urban Fellowship, Region of Love, Institut Rakyat dan SALT Movement.
The NGO in Malaysia tried their best to supply food and basic needs for the homeless to
survive.
5.2. The Role of Zakat (Alms Tax) in Eradicating Poverty
18- http://www.kwp.gov.my/index.php?option=com_content&view=article&id=60&Itemid=309&lang=en
19 - Destitute is a person found begging in a public place in such a way as to cause or likely to cause annoyance to people who commonly visit that place or to hold a nuisance or an idle person found in a public place, whether or not they begging, which has no points means of subsistence or shelter or can not say it himself with distinction. Related Acts:• Destitute Persons Act 1977 (Act 183)
20 - http://www.jkm.gov.my/
10
Zakat 21 or Alms Tax also plays a very important role in eradicating poverty in Malaysia.
According to a source from the Islamic Religious Council of Federal Territory (MAIWP), the
council had spent RM4.59 million from the Zakat money to help poor families to buy school
uniforms and equipment for their children for the school session in 2015 session.
This assistance was delivered to a total of 20.377 7.545 receiver consists of primary schools,
10,079 secondary schools and 2,753 primary school students of religion.
The religious council also has allocated RM55.6 million for the charity fund assistance in
the form of an academic purposes. In addition to the assistance of charity in the form of
schemes, the religious council also developed educational institutions such as kindergartens
Islamic religious council Religious Secondary School, Secondary School Science Tahfiz
integrated, Baitulmal Skills Institute, Baitulmal Professional Institute and the International
College of Medical Sciences PUSRAWI. 22
Zakat (alms tax) come from various type of zakat such as zakat income, zakat commerce,
zakat deposit, zakat KWSP, zakat share, zakat gold and silver, zakat harta, zakat plants, zakat
farms and qada zakat. In Selangor Malaysia, the Selangor Zakat Foundation had collected
RM432.2 million in 2012 compared to RM376.1 million in the previous year.
21 - Zakat obligation is an obligation that is a blessing and a continuing impact not only on those who took it, but also those who receive it. Implementation of zakat affects not only the individual, but also affects the whole society. Zakat also play a role in improving the welfare of the community and help boost economic activity. Zakat is capable of eroding the pride of the rich and the poor avoid iSkin of begging. Assets acquired the rich actually are part of the poor and the rich pay the duty of such rights. Allah has enjoined Zakat as one of social security to the people, especially to those in need, increase economic growth is balanced by the redistribution of wealth in society and as a form of purification and spiritual development of every Muslim. Zakat also acts as a crucial mechanism for an Islamic state to guarantee the welfare of the people as a whole. Charity also has the ability and the power to eradicate poverty and ensure the balance of the gap between rich and poor through the mechanism of redistribution of wealth in society. Zakat is a fixed income and the duty to always be carried out by a Muslim country and it will not be interrupted. Therefore, the Islamic countries can use zakat resources to build economic strength, social, educational, and eventually be able to build the strength of Muslims indirectly build a strong unity of the Ummah. The problem of eradicating poverty is the main purpose of zakat in Islam by providing subsistence and adequate capital for those who wish. Subsistence of this charity is provided to those who are unable to work for reasons of disability or the like. Capital is allocated to those who can work but do not have the capital to carry out the work. Both of these provisions are adequate given the rate in accordance with the economic situation, time, place and purpose of the poor. Subsistence shall be sufficient to eat, drink, clothing, shelter, education and health. While capital should be adequate levels of capital projects to be undertaken. Subsistence and capital grants and other purposes is adequate rates. Rates sufficient for subsistence taken from the five basic needs must be given for the needy may be deemed necessary by the group or even for the rest of his life by way of monthly and so on. Aside from the eradication of poverty, charity is also a tool to combat the problem of the curse of Allah laptop on the parties involved in the process of laptop. With capital adequacy means escape door system imposed usury lending. Capital of zakat can be given to the poor who wish to open a job best of his ability, either as cash or as an interest-free loan. Source from http://www.izakat.com/22 - Ibid
11
The number of citations to follow the segment's largest charity donated by Zakat Income
(RM260.5 million), followed Zakat Commerce (RM85 million); Zakat Deposit (RM30.5
million); Zakat KWSP (RM7.8 million); Zakat Shares (RM7.8 million); Zakat of Gold and
Silver (RM2.1 million); Zakat Harta (RM34.6 million); Zakat Plants (RM2.6 million), Zakat
farmed (RM0.03 million) and Qada Zakat (RM1.4 million). 23
5.3. Education as a tool of poverty Eradication
There is no doubt that education is one of the best ways to eradicate abject poverty. One of
the main problems of poverty in Malaysia as well as other countries is lack of education.
Majority of people who live in poverty, are not well educated. Lack of education means less
opportunity for better job which associate with a better living standard.
In a survey conducted on the respondents consisted of 40 men and 101 women, the majority
aged between 51 years and above showed that most of the respondents were widowed (70%)
of the average uneducated. Only 7.8 percent of respondents had attended high school.
Otherwise primary school (33.3 percent) and education (58.9 percent). 24
This shows that most respondents did not have a formal education and this affects the poverty
they experience. This is because nearly 56 percent of respondents earning RM100 and below
and 40.4 per cent were earning between RM100 and RM300.
Nearly 61.7 percent of those who did not work (for elderly) and due to low educational
background. 25
In Malaysia, the government had introduced minimum wage policy which is RM900
(USD273.00). For those who has a degree, the basic salary is around RM2, 500 (USD714.00)
which is considered quite reasonable income if compared to some other countries.
Therefore, members of society needs to be given opportunities for adequate education to
make their children become more educated, career-minded and as a result would be able to
shift themselves and their families out of poverty.
The education sector should also be given due attention by the government as it is one of the
most effective in the eradication of poverty. 26
23 - Ibid24 - http://www.ukm.my/news/index.php/ms/berita-penyelidikan/143125 - Ibid
26 - Ibid
12
5.4. Business as a tool of poverty Eradication
In an effort to improve the income and living standards of the people, the government of
Malaysia is focus on eradicating extreme poverty and urban poverty, help the poor and
vulnerable, increasing home ownership, expanding public health facilities and strengthening
the network social security.
According to the 2010/2011 Economic Report, to further alleviate poverty in rural areas, the
government continued surge in mega scheme involving integrated land development for
agriculture, as well as update the e-Kasih database to identify and help the poor.
1AZAM Movement Program consists of four components, namely AZAM Tani, AZAM
Niaga and AZAM Kerja and AZAM Khidmat initiatives aimed at creating jobs and
entrepreneurship, in line with the government's efforts to eradicate abject poverty.
Consistent with the goal of reducing the poverty rate to 2.8 percent by the end of 2010, efforts
were made to strengthen the earning capacity of the rural poor.
The report said the government has established the People's Welfare Development Scheme
(SPKR) to implement programs to increase the income, skills training and capacity building
as well as provide Excellence in Education Program in order to help the disabled.
To support the urban poor into a small business, the government introduced the Urban Micro
Credit program managed by AIM and take advantage of 16.907 applicants in the first eight
months of this year. 27
5.5. The role of Riches in Society
The rich people also can play an important role in eradication of poverty. The rich people
should have awareness about the poor around them in the society. They should not just wait
for the government to lend a hand to the poor, they should help them out as much as they can.
The rich should not worry about become poor because of giving out their wealth to help the
unfortunate because Allah had promised that they will become richer by helping others.
Charity invite God's grace and for God to open the doors of sustenance and great rewards.
The Prophet's s.a.w said:
“Sadaqah is multiplied 700 times.”
27 - http://www.moa.gov.my
13
Benefit for people who donate is huge as there is evidence in the Quran and Hadith. If we
were to observe the following verse of the Qur'an, we can calculate that at least every wealth
issued to the path of Allah will be rewarded with a count of more than 700-fold.
Allah Ta'ala says:
"The Parable (maintenance incurred by) those who spend their wealth in the way of Allah is
like a seed which grows seven points, in every particular hundred grains. God multiplies (the
reward) for whom He wills. And Allah is vast (bounty) is omniscient ". 28
In another verse Allah s.a.w says:
"Those who give alms, both men and women, and loan to Allah a beautiful loan, He will be
doubled (the reward) for them; and for their reward." 29
Allah says: "And those who fear Allah, will be presented to them a way out. And given them
sustenance of the road unexpectedly. And whosoever puts his trust in Allah, then He will
suffice him. " 30
6.0. Street Begging Problems in Malaysia
Street begging is a raising issue in Malaysia. It seems that Malaysia have become a haven for
foreign beggars who can earn up to RM8,000 a month from donations by kind locals. The
beggars problems become more serious when these beggars are believed to have entered the
country with the aid of syndicates by abusing their social visit passes. 31
According to a report, Malaysian Immigration officers have arrested 14 Chinese nationals,
and seized RM16,000 (US$5,081) in cash, which is believed to be one month’s income
collected from begging. Aged 40 to 80, those arrested were believed to have entered
Malaysia on tourist visas and were able to live well in the country by begging. With each of
them collecting between RM800 (US$254) to RM1000 (US$318) monthly they decided to
stay on in Malaysia rather than return to China.
Based on another report, a 30-year old Chinese beggar told the Malaysian Chinese
Association (MCA) Public Services and Complaint Department that a professional Chinese
28 - (Al-Baqarah (2): 261)29 - (Qs. Al-Hadid: 18)30 - (At-Talaq: 2-3)31 - http://www.thestar.com.my/story/?file=%2f2010%2f8%2f23%2fnation%2f6902765&sec=nation
14
beggar in Malaysia could make up to RM10,000 (US$3,176) per month, which is two or three
times more than a white-collar worker. 32
This issue had prompted the Federal Territories Ministry to release a statement that the
ministry will impose fines and other penalties on the givers of alms and beggars in several
focal areas to reduce the begging culture that tarnishes the image of the federal capital. The
ministry also will introduce a rule where a summons will be issued to those giving alms and
haul up the beggars as most of them are foreigners. According to ministry the legislation will
tighten. 33
This problem cannot just be ignored and neglected because it can have adverse effects on the
environment, economy and social. The negative effect of beggars in terms of the environment
is the existence of the beggars may portray a bad image to Malaysia. It has been reported
many complaints had been received from the public about the presence of beggars and
vagrants in various area which give the country a bad image especially to foreign tourists. 34
6.1. Begging in Islamic Perspective
In Islam, the act of asking or begging is one of the forms of humiliation, even the Prophet
threatens people who ask, with the threat of hell fire on the Day of Resurrection, and opened
the door to poorness.
Prophet said:
باب , , عبد فتح وال عزا الله زاده إال عليها فصبر مظلمة عبد ظلم وال صدقة من عبد مال نقص ما
فقر عليه الله فتح اال مسالة
"The wealth will not be reduced due to a charity, a person who had been mistreated and still
be patient, God will confer him the glory, and anyone who opened the door of begging, God
will open doors of poorness for him" 35
There are so many traditions that threaten people who make the act of asking or begging as a
job, but he still has the strength and ability to earn income correctly. 36
32 - http://www.theepochtimes.com/n2/world/malaysia-tackles-begging-gangs-41999.html33 -http://www.themalaysianinsider.com/malaysia/article/beggars-and-those-who-help-them-face-a-fine-says-minister-bernama#sthash.eOXxUM9Q.dpuf
34 - Mohd Ramlan Mohd Arshad, A-Ain Zubaidah Mustafa Kamal and Nur Dalila Arif, Street Begging in Kuala Lumpur, DOI: 10.7763/IPEDR. 2014. V 78. 1
35 - (Sunan At-Tirmidhi, no. 2325)36 - http://atsar.ilmusunnah.com/index.php?route=product/product&product_id=745
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The culture of begging is not from Islam because Islam calls on its followers to strive and
work to support themselves and family members. Begging is illegal for those to have the
strength and ability to earn a living. 37
6.2. Malaysian Authorities Efforts to Curb the Street Begging Problems
According to some people, the best method to tackle this problem is by refusing to give
beggars money, leaving them with no choice but to return to their own country to earn an
honest living. 38 However it is not as easy as it sounds given the fact that Malaysian people in
general are very generous.
There are various approach that that had be taken by Malaysian authorities to solve the street
begging problems. The Malaysian authorities are very serious in tackling the problems of
street begging. Various opearations had been carried out nation wide.
For example in the year 2013, a joint operation carried out by the Kuala Lumpur City Hall
(DBKL) has transported a total of 965 homeless and found 125 of them are illegal
immigrants. In 2014 (until May) total 117 homeless people have been successfully transported
through integrated operations conducted and found 21 of them are illegal immigrants. 39
According to The Women, Family and Community Development Ministry, plans to amend
the Destitute Persons Act 1977 to introduce the element of enforcement to curb begging
activities are on the way. Its minister Datuk Seri Rohani Abdul Karim said the existing law
only provided for protection and rehabilitation of beggars. The government also wants to get
rid of syndicates believed to be behind the begging activities. Rohani said among the penalties
proposed were imprisonment, compound fine and community service for those who exploited
others to engage in begging or who made begging their choice of work. 40
37 - http://www2.bharian.com.my/articles/Harammintasedekahbagiberkemampuan/Article/38 - http://www.thestar.com.my/story/?file=%2f2010%2f8%2f23%2fnation%2f6902765&sec=nation
39 - http://m.themalaymailonline.com/what-you-think/article/government-serious-in-handling-beggars-and-homeless-in-kl-federal-terr40 -See more at: http://www.themalaymailonline.com/malaysia/article/government-to-amend-act-to-curb-begging#sthash.AkSnVqri.dpuf
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7.0. Recommendation
In order to resolve the issue of abject poverty and street begging , it is recommended that the
government should review the economic policies to ensure that those policies include those
in the poor categories who stay in urban and rural areas. The welfare of those in need should
be addressed and tackled more seriously. Failing to do so, the problem of abject poverty and
street begging would not be able to solve and thus will create more serious societal
problems.
The government agencies as well as Non-Government Organization should play more
significant role in solving these problems.
The Government must ensure that basic needs of the poor people are adequate such as food,
utilities and housing cost which in increasing trend because these are among other factors
which can contribute to abject poverty and street begging in Malaysia.
8.0. Conclusion
1. The responsibility to fight and eradicate the abject poverty and street begging is not
only responsibility of the government agencies. All parties must come forward and extend
their assistance simply because these two problems are not the government’s problems
alone. The effects of these problems sooner or later will be faced and felt by everyone in the
society.
2. Malaysia managed to reduce poverty level from around 50% in 1970s to 22.8% in
1990s and to only 5.7% in 2009. Malaysia is very ambitious to reduce the poverty level to
zero by year 2020.
3. Despite this positive progress in eradicating abject poverty and street begging,
incidences of poverty and street begging can still be found and they vary considerably by state
and among the various ethnic groups. Therefore, more efforts should be given to ensure a
better success in combating abject poverty and street begging in Malaysia.
9.0. References
[1] Shireen Mardizah Hashim, Income Inequality And Poverty In Malaysia, 1999, Rowman &
Littlefield, USA
17
[2] Osman Rani Hassan Rajah Rasiah , Poverty and Student Performance in Malaysia,
International Journal of Institutions and Economies, Vol. 3, No. 1, April 2011, University of
Malaya
[3] Department of Welfare. Statistic on beggars in Malaysia. Ministry of Women, Family and
Community Development of Malaysia. 2013.
[4] E. E. Yassin Abdalla and S. Narimah. Political economy and urban poverty in the
developing countries. Lessons learned from Sudan and Malaysia. Journal of Geography and
Geology, 4(1). 2012.
[5] Economic Planning Unit. Statistic on the household income and Poverty Line Income in
Malaysia. Prime Minister Office of Malaysia. 2013.
[6] News Strait Time. Begging in the street. Retrieved: http//www.nstp.com.my (Accessed on
5 November 2014).
[7] News Strait Time. The urbanization and urban poverty. Retrieved:
http//www.nstp.com.my (Accessed on 5 November 2014).
[8] N. Samat, Fatimah Hijles Mahdi, Aslinda Osman. Application of geographic information
system in identifying deprived areas. Paper presented at the 7th international Malaysian
studies conference. 2010.
[9] The Borneo Post. The street begging issue. Retrieved:http//www.theborneopost.com.my
(Accessed on 5 November 2014).
[10] The Edge. Urban development and urbanization in Malaysia's city. Retrieved:
http//www.theedgemalaysia.com
(Accessed on 5 November 2014).
[11] The Star. Begging issue. Retrieved: http//www.thestar.com.my (Accessed on 5
November 2014).
[12] UNICEF. National Performance Gap. The Progress of Nations, pp-33-34. 1990.
[13] Boo Teik Khoo, Policy Regimes and the Political Economy of Poverty Reduction in
Malaysia, 2012, United Nation Research Institute for Social Development 2012, London.
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Attachments
Statistic of Zakat collected in Malaysia for year 2002 and 2003 41
State 2003
(RM Million)
2002
(RM Million)
Changes
(%)
W.P Kuala Lumpur 92.90 80.85 14.9
Selangor 77.92 70.76 10.1
Terengganu 34.62 27.88 24.2
Johor 26.01 21.59 20.8
Perak 17.40 16.58 4.9
P.Pinang 19.07 17.89 6.6
Pahang 16.68 14.57 14.5
Kedah 18.32 18.07 1.4
Kelantan 13.88 12.01 15.6
N.Sembilan 14.01 12.61 11.1
Melaka 11.20 10.70 4.7
Sarawak 7.77 11.26 31
Sabah 2.68 3.11 13.8
Perlis 4.52 5.54 18.4
Total 357.06 323.50 10.37
41 - http://repo.uum.edu.my/732/1/Hairunnizam_Wahid.pdf
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