An inefficient public transportation system is the main culprit for urban poverty, the chief minister of Malaysia's richest state told participants of a national seminar early this week.

Selangor Menteri Besar Dr Mohd Khir Toyo, in blaming the unreliability of the urban public transport system for many of the ills afflicting urbanites today, urged the federal government to immediately address the situation.

He said many city-dwellers fell into the category of urban poor because their household expenses exceeded their monthly income mostly to repay loans.

"Many are forced to buy a car or cars because they cannot rely on the transport system which is a very important factor in urban areas," he said, relating Selangor's experience.

"In other countries, public transport is subsidised by the government. I hope the federal government can provide more efficient public transport so that people don't have to fork out RM700 for loans every month."

Mohd Khir said an efficient system would also enable town planning to be expanded beyond existing borders of towns and cities where population density is bursting at its seams.

"We're still working with the Transport Ministry. A good public transport system will enable low-cost housing developments to be spread to outlying areas which will in turn reduce the overall cost.

"Even though the city is overcrowded, people refuse to relocate far from the city center because transportation is terrible, the environment is not conducive, and there are no schools or facilities."

Out of necessity

On the other hand, he said, the state was constrained by the land scarcity, high premiums and a high population density, and to illustrate the situation he pointed out that 40 percent of factories in Malaysia were in Selangor.

"We are looking at Hulu Langat and Sepang as the second Klang Valley in terms of new developments away from our over-populated cities," he added.

Noting a trend within the ongoing squatter relocation exercise under the state's 'Zero Squatter 2005' policy, Mohd Khir said people are now asking for more parking lots out of necessity.

"We can't blame them. The spouses may be working at opposite ends of the city with schoolgoing children and all," he said, noting that 70 percent of squatters were not from Selangor.

"Most of the urban low-income families, after deducting the monthly repayment of loans and house/flat rental, are only left with about RM200, dipping below the hardcore poverty line."

At present, the poverty line income for Peninsular Malaysia is RM529, RM690 for Sabah and RM600 for Sarawak.

Citing statistics to show a two percent poverty level in cities compared with 11.4 percent in the rural areas, he noted that "numbers may not offer a realistic picture".

His figures also showed that 25.9 percent of Malaysians were in the low-income families defined as earning less than RM1,200. The state also plans to commission a poverty eradication blueprint.

"Houses for the hardcore poor are either repaired or built anew depending on whether or not they are reparable. If they are, a special fund will finance repairs not exceeding RM7,000.

"Otherwise, a new house would be built at a cost of a maximum RM18,350, including the state's RM5,980 top-up of the amount provided by the Rural and Regional Development Ministry under a similar scheme."

The target groups for the three-room dwellings, he said, were single mothers, retirees and the disabled, with priority for those aged above 50.

No free housing

Mohd Khir said many poor families survived by running small food businesses but that some of them were either illegal or unhygienic.

"We relocate them to food courts and better stalls so that their can continue to earn their living with proper facilities."

One impossible thing for the state, he said, was to give in to squatters who ask for free housing.

"We can't entertain such demands because it is not possible to give free houses or sell them really cheap. Anyway, this is a small issue."

Touching on skills as a way of breaking the poverty cycle, the chief minister said Malaysian Indian youths in the state appeared uninterested in such programmes as offered by the state-owned Inpens International College.

"We've been asking them to join Inpens but the enrolment has been very poor. Last year, there were less than five students while this year there are less than 10 students," he said, adding that it may be an awareness problem.

"Selangor is offering them skills training but they don't seem to have the spirit to improve their lives. That's the problem. Maybe that's why there is minimum response from these youths."

Mohd Khir also urged the public to understand how state taxes are spent with regards to privatised housing developments.