RURAL-URBAN POVERTY LINKAGES AND INNOVATION FOR POVERTY REDUCTION MINISTRY OF RURAL AND REGIONAL DEVELOPMENT MALAYSIA (MRRD), MALAYSIA 27 JUNE 2018
MINISTRY OF RURAL DEVELOPMENT AT A GLANCE
Target Group 7.88 million rural people 14,960 Head of Poor / Hardcore Poor Households 178,197 Orang Asli (Indigenous People) 622,489 Smallholders 72,276 Rural Enterpreneurs 16,718 Village Development and Security Committees 235,315 Children in Daycare / Kindergarten 3
OVERVIEW
MALAYSIA 14 States 328,550 km 2 17,392 villages GDP Growth:5.8% Unemployment Rate (2016) 3.3% rural 3.5% urban 32.05 million population 24.5% rural 75.5% urban Average monthly income (2016): Urban:RM7,671/ approx. USD1,918 Rural: RM4,359 / approx. USD$1,090 Poverty Incidence: Urban: 1970:21.3% 2016: 0.2% Rural: 1970:58.6% 2016: 1.0%
RM '000 INDIC ATORS OF RURAL MALAYSIA.. How does Malaysia define its rural area? An area of less than 10,000 residents outside of local authority zones Malaysia s rural area comprises of 70% of its total size (231,180km 2 / 23 mil ha) including agriculture areas, forests, villages, coastal areas and islands Source: DOS, JPBD 9.0 8.0 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0 Average monthly household income has significantly increased from 1970s Urban Rural Malaysia 1970 1980 1990 1999 2002 2004 2007 2009 2012 2014 2016 Year RM7,671 (USD1,918) RM6,958 (USD1,740) RM4,359 (USD1,090)
Percentage of rural population has been decreasing since 1970, from 71.6% to only 24.5% of Malaysia s total population Percentage of internal migration rate 2007-2016 100% Bandar Urban-Urban - Bandar Luar Rural-Urban bandar - Bandar Bandar Urban-Rural - Luar bandar Luar Rural-Rural bandar - Luar bandar 90% 80% 70% 60% 28.4 34.2 51.0 61.9 73.7 75.5 12.2 13.3 13.5 10.7 10.6 10.2 7.4 5.3 7.0 6.9 4.2 8.2 6.4 7.5 7.7 8.7 13.8 15.2 22.9 25.2 17.3 24.3 20.4 17.3 22.0 50% 40% 30% 20% 10% 71.6 65.8 49.0 38.1 26.3 24.5 11.0 53.9 10.6 50.9 55.8 58.5 61.5 64.8 67.2 74.0 73.6 0% 1970 1980 1991 2000 2014 2016 Rural (%) Urban (%) Source: DOS 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016
Percentage (%) Malaysia Poverty Line Index for a 5 member household is separated into 3 categories according to territories S i n c e 1 9 7 0 s, M a l ay s i a s incidence of pove r t y a t r u r a l a re a h a s b e e n on the decline, w h e re i n the focus has now shifted to p ocke t s of pove r t y Poverty Hardcore Poverty Territory USD RM USD RM Peninsular 252.5 1,010 158.75 635 Urban 236.705 946.82 155 620 Rural 240.75 963 161.75 647 70 60 50 40 58.6 45.8 Sabah 332.25 1,329 200.75 803 Urban 329.5 1,318 192 768 30 Rural 341.25 1,365 216.25 865 Sarawak 280.75 1,123 183.25 733 Urban 292.5 1,170 192 768 Rural 265 1,060 173.5 694 Exchange Rate: USD1 = RM4.00 Source: DOS, EPU 20 10 0 21.8 14.8 11.9 7.7 8.4 0 0 5.2 3.6 2.9 1.8 1.8 3.40.6 10.2 1970 1980 1990 1999 2004 2008 2009 2012 2016 Year Poor (%) Hardcore Poor (%)
FACILITATING RURAL-URBAN LINGKAGES
FACILITATING RURAL-URBAN LINGKAGES Bridging Rural-Urban Gap Policy Infrastructure Economic Activities Human Capital Development
MALAYSIA RURAL DEVELOPMENT POLICY Infrastructure Human Capital Post Independence (1957-1969) Basic Infrastructure Modernization & diversification of Crop 1990 New Philosophy & Strategy for Rural Development- Human Capital Development Focus on Hardcore Poor 2000 Expansion of rural infrastructure & amenities 2015 Rural Transformation Plan 11 th Malaysia Plan Economy 1970 Poverty Eradication New Economic Policy New land development scheme 1994 Community Role in Rural Development Poverty Incidence 49.3% (1970) to 16.5% (1989) 2009 Rural Transformation Programme Expansion of Rural Basic Infrastructure + Upgrading Economy
RURAL BASIC INFRASTRUCTURE Rural Road Electricity Water Supply Housing Assistance 5,633 km (2010-2017) Coverage (Rural): 99.7% Coverage (Rural): 83.4% 107,020 houses (2010-2017)
RURAL ECONOMIC ACTIVITIES Private Sector Driven-Large Scale Fruit Farms Cooperative (Community) Driven- Desa Lestari/ 21 ST Century Village Agropolitian Rubber/ Oil Palm Plantations Youth Entrepreneur Driven- Rural Business Challenge Mobilepreneur Rural Transformation Centre (RTC)/ Mini RTC
HUMAN CAPITAL DEVELOPMENT Skill Trainings & Career Programme GIATMARA-Rural Youth Training Centre KEMAS- Kindergarten/ Nursery Rural Leadership Programme
ROLE OF RTC/ MINI RTC
STRATEGIC LINKAGES MINI RTC-RTC-UTC Main Function Community Development Mini- Rural Economy Activities Urban Services Supporting Function Training Centre One Stop Centre for Government Services Volunteers Centre Agriculture Collection Centre Agriculture Supply Chain Skills Training Entrepreneurship Development Programme Selected Government Services Financial Services Government Services Youth Centre Financial Services Health Services Community Development Rural Urban
To create positive impact on the life of people in rural and urban area by developing strategic linkages and cooperation as well as effective coordination among implementing agencies within UTC-RTC-Mini RTC UTC RTC RTC Mini-RTCs UTC RTC UTC RTC UTC RTC UTC Mobile CTCs Mini-RTCs UTC RTC RTC Mini-RTCs Mini-RTCs Mobile CTCs UTCs UTC RTCs Goods Financial People
Coordination Points under Strategic Linkages HIGH VALUE FARMING COLLECTION & DISTRIBUTION CENTRE LOGISTICS & FAIR- PRICE STORES
WAY FORWARD
CURRENT INNOVATION Online Shopping Platform for Rural Entrepreneurs Village Profile Database Banking Agents in Rural Area
IMPROVEMENT Malaysia to improve: Rural-Urban Public Transportation Connectivity High Speed Internet: Connectivity + Cost Courier Service
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