SOCIAL INCLUSION IN URBANISATION PROCESS IN MALAYSIA 2013 POVERTY REDUCTION & DEVELOPMENT FORUM BEIJING, CHINA SOCIAL INCLUSION IN URBANISATION PROCESS IN MALAYSIA 17th OCTOBER 2013 DATUK DR. RAHAMAT BIVI BT YUSOFF DIRECTOR GENERAL ECONOMIC PLANNING UNIT PRIME MINISTER’S DEPARTMENT MALAYSIA

PRESENTATION OUTLINE Background Concept Of Urbanization Malaysia’s Past Achievements Target Groups & Issues Government’s Initiatives/ Interventions Lessons Learned Conclusion

CONCEPT OF URBANISATION A process in which an increasing proportion of the entire population lives in cities ○ Urban population in Malaysia increased from 26.8% in 1970 to 34.2% in 1980 and 71.0% in 2010 ○ Contributing factors: □ redefinition and growth of new urban areas/extension of administrative boundaries □ net migration (rural to urban) □ natural growth (decline mortality)

CONCEPT OF URBANISATION  

IMPACTS OF RAPID URBAN GROWTH.. 4 divides in society Economic Divide – income inequality in society Spatial Divide – differences in the living environment Opportunity Divide – access and distribution of related benefits of “urban advantages” (especially employment opportunities) is unequal in society Social Divide – unequal distribution of basic services Introduce specific intervention to ensure SOCIAL INCLUSION Social Inclusion The provision of certain rights to all individuals, and groups e.g. employment, adequate housing, health care, education & training, basic infrastructure, utilities & amenities Positive steps taken to combat the risk of individuals or communities being excluded or marginalised from mainstream society due to reasons such as unemployment, low income & poor housing. Source : The State of the World’s Cities : UN-Habitat, 2011 Requires intervention by the Government to ensure every citizen is provided equal opportunity to participate in socioeconomic development without excluding any group - ENABLING PEOPLE OR COMMUNITIES TO FULLY PARTICIPATE IN THE SOCIETY

NATIONAL URBANISATION POLICY Goals: Creating an environment that can develop a harmonious community A balanced development in all aspects – social inclusion Creating a vision of urban community and living in peace through sustainable urban development Objectives: Based on the goals, six objectives have been identified, namely to: Develop planned, quality, progressive and sustainable cities; Strengthen the competitiveness of the urban economy; Create a conducive environment to promote social development; Eradicate urban poverty; Strengthen planning, implementation and monitoring mechanisms (using KPIs); Strengthening and increase efficiency of local institutions - administration and management areas – improving service delivery.

MALAYSIA’S PAST ACHIEVEMENTS Incidence of poverty reduced from 49.3% in 1970 to only 1.7% in 2012 Average gross monthly household income increased from RM264 in 1970 to RM5,000 in 2012 Continuous high economic growth with an average of 6.3% p.a from 1970 to 2012 Reducing income gap where Gini Coefficient has decreased from 0.541 in 1970 to only 0.417 in 2012 Shift focus from “poverty-based” development programme towards “inclusive development” that aims at providing equality of opportunity to every citizen to participate in the economic development without marginalising any segment of the society

MALAYSIA’S PAST ACHIEVEMENTS Based on 4 basic principles inclusive growth: Needs-based: bottom 40% households and disadvantaged groups with specific needs will be targeted; Merit-based: programmes will encourage competition and award opportunities to the most qualified individuals and business; Market-oriented: new affirmative action instruments will allow resources to be optimally allocated and not cause, contribute or perpetuate economic distortions; and Transparency: policies, procedures and criteria will be made clear and public.

TARGET GROUP & ISSUES WHO Pockets of poor households especially in the suburban areas Urban Vulnerable Groups (UVGs) : Those who are prone to any shocks and are unable to withstand adverse impact that inhibits human potential WHY Lack of accessibility to participate in the socio-economic development through the open market system Our concern is due to: Low income – 60 % of the average gross monthly income ≤ RM3,600 Low capacity and capability Lower educational level Majority (66.1%) households head age < 40 yrs Ability to increase income very limited due to: Lower educational/training attainment – 85.5% household head achieved highest educational attainment at secondary level & below Engaged in low skill & lower level employment (70%) Entrepreneurs involved in micro & small entreprises & businesses with lower productivity level Involved in informal sector with low value-add industries/sectors

TARGET GROUP & ISSUES (cont…) WHY Other issues concerning UVGs also include: Increasing cost of living – due to continuous increase in food & fuel prices Less accessibility to quality basic infrastructure, utilities and amenities Unaffordability of home ownership – living in less than desirable living conditions & unsuitable locations Limited access to quality education and training from early childhood due to affordability issues High cost of transportation due to poor connectivity and reliability on public transport system Highly dependent on public health services which are congested, insufficient facilities and medical officers

GOVERNMENT’S INITIATIVES/ INTERVENTION TO ENHANCE SOCIAL INCLUSION Containing impact of increasing cost of living Price control policy on appropriate items such as flour, cooking oil, petrol & diesel, etc. Price subsidy to various basic items such as rice, flour and sugar. Direct cash giving programmes such 1Malaysia People Assistance Programme (BR1M), monthly allowances to eligible group from the Welfare Department and state religious departments. Increase accessibility to basic infrastructure, utilities and social amenities: Housing Transportation Education/ training & employment Health Social Safety Net (SSN)

Lessons Learned Improvement in economic growth allows for improvement in the quality of life There should be systematic planning, implementation & monitoring mechanisms at all levels of administration Assisting the vulnerable group is a social development agenda: requires an integrated development approach involves high investment & resources ultimately provides high social outcome Education and training play a major role in increasing the income of the vulnerable groups while the provision of healthcare and basic amenities increases their quality of life Updated policies, strategies and programmes – adjusted periodically based on domestic and global challenges The success is not the result of any single policy but different policies applied at different times

Conclusion Development has resulted in rapid urbanisation and this posed new challenges including the emergence of urban poor and Urban Vulnerable Groups (UVGs) Hence, programmes & strategies have to cater to these changing needs

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