Since Mapen II days, a number of us have tried hard to argue that poverty is multifaceted. It has a rural and urban face. The issue is not which is more urgent but for policymakers to understand the critical issues of poverty as it impacts the bottom 30% of Malaysian society, whether in rural or urban neighbourhoods.
Public policy discussions are dominated by statistical averages using the household income measurement based on a minimal basket of goods needed for human existence. While there have been changes in the Poverty Line Index in the measurement of poverty as indicated in the Ninth Malaysia Plan, the measurement, however, is an income measurement index.
Data analysis and figures are used consistently by government agencies to argue that one dimension, namely rural, is more urgent than the other. Therefore, it seemingly promotes the concept that rural poverty eradication requires much more focus, priority and resources.
It has been very difficult to argue on methodology issues and on indicators used in defining poverty in Malaysian society as there has been little openness to incorporate a broader definition which will then clearly show the critical nature of urban poverty in Malaysian society
In my opinion, poverty measurement must take into account additional aspects. Malaysian society is not just divided by rural and urban demarcations. There are other aspects too. In rural areas we can note well-developed rural areas where there is greater access to public services. There are also underdeveloped rural areas and interior rural areas where public services are scarce.
In a similar way, there are affluent urban areas, developed urban areas and underdeveloped urban areas. People living in urban areas cannot be categorised as ones having access to public or private services automatically. Statistically, one may live in an area with the available services but he or she is inhibited due to socio-economic factors.
An example of this would be a young couple living in a squatter house in the Subang area. Statistically they might be categorised as having access to all the services. However, in reality, they would not have the access.
The Ninth Malaysia Plan has given very little emphasis to urban poverty in terms of budget allocation and establishment of effective mechanisms. The weightage is too strong on rural poverty. While there is a major need to address poverty in interior areas of Sabah and Sarawak, especially among native groups, as well as among the Orang Asli in the Peninsula, nonetheless new measurements must be in place to understand urban poverty.
With increasing urbanisation and the existence of larger sections of the bottom 30% poor and low-income families living in underdeveloped neighbourhoods, there is an urgent need to revisit urban poverty. Crime cannot be fully resolved by increased policing but by addressing the root causes of urban poverty. New indicators must take crime, violence, underachievement in education, drug and substance abuse not as isolated anti-social behaviour of delinquents but as manifestations of urban decay and unrest.
Inter-ethnic and intra-ethnic income difference, or often referred to as relative poverty, is very critical in Malaysian society. Adequate attention is not being placed in this area. In a majority of the developed economies, half of the average income is used as the poverty benchmark. If this is used in Malaysia, then all urban families earning less than RM1,978 (which is half the average income) will be regarded as poor.
It is urgently imperative for government to devise policies and mechanisms to ensure greater inclusion of families at the bottom end of society whether they are in the rural or urban areas. It is of utmost importance that public agencies operating in these areas be multi-ethnic, multi-disciplinary and multi-cultural in their outlook and orientation.
Failure to do this in an effective and efficient manner will continue to breed despair and alienation which in turn has the potential to lead to racial discontentment especially in urban poor neighbourhoods.
