1. 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

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

3. 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)

4. CONCEPT OF URBANISATION

5. 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

6. 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.

7. 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 in 1970 to only 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

8. 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.

9. 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

10. 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

11. 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)

12. 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

13. 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

14. THANK YOU