The government is shifting to a more meaningful measurement of poverty using the Net Disposable Income (NDI) concept as the basis for identifying target groups eligible for assistance, said Prime Minister Datuk Seri Anwar Ibrahim.
Anwar explained that the NDI concept will reduce errors of exclusion and is more equitable, as it will account for the Basic Adequate Living Expenses (PAKW), which refers to the cost of essential living needs required to lead a dignified and meaningful life. “This covers costs for food, clothing, shelter, utilities, and transportation, which vary according to location and household demographics,” Anwar said during his speech at the 2024 National Symposium: Ending Poverty, held today.
The symposium, themed “Together, Empowered, and Sustainable,” outlines five key initiatives: improving measurement, reforming poverty eradication funds, unifying data, changing attitudes and mindsets, and strengthening the strategies for ending poverty.
In his address, Anwar, who also serves as the Finance Minister, assured that the Cabinet would give serious attention to the findings and feedback gathered from the symposium. He also tasked Economy Minister Rafizi Ramli with compiling all ideas and insights shared by the panel and participants for review.
“I can assure you that once these summaries are completed, the Cabinet will take these views seriously,” Anwar emphasised. He added, “If Rafizi can summarise the preliminary notes by Wednesday, we can ensure this becomes a priority matter, one referred to as ‘fiqh aulawiyat’ (the fiqh of priorities).”
On the second initiative, Reforming Poverty Eradication Funds, the Prime Minister affirmed the government’s commitment to continuing fiscal reforms as part of efforts to restructure the economy towards sustainability. He stressed the need for a more targeted subsidy framework, including social assistance and poverty programmes.
Anwar also highlighted the importance of diversifying funding sources beyond just relying on government funds, as this could affect the sustainability of poverty programmes and increase fiscal pressure. “To tackle this challenge, we must mobilise more innovative financing methods, such as social impact funds, public-private partnerships, and blended finance,” he said.
The Prime Minister further encouraged contributions from various parties, including government-linked companies (GLCs), government-linked investment companies (GLICs), the private sector, and the third sector, to participate in joint financing initiatives supporting community-based solutions.
For the third initiative, Data Unification, Anwar reiterated the government’s ongoing efforts to ensure data integrity, highlighting the need for cooperation among all relevant agencies in sharing data, information, and resources to identify and address extreme poverty. He noted that these data sources would be integrated into the Main Data Repository (PADU), which he launched in early January.
“By 2025, the government aims to use PADU as the basis for determining eligibility and providing assistance, thereby supporting data-driven decision-making initiatives,” Anwar explained.
The fourth initiative focuses on Changing Attitudes and Mindsets, while the fifth, Strengthening Strategies for Ending Poverty, refers to a behavioural insight approach to understanding the attitudes and behaviours of target groups when designing programmes aimed at freeing individuals or communities from the cycle of poverty.
