Poverty In Malaysia

On a hillside overlooking the grandiose administrative capital that Malaysia has built at vast expense, vacant lots marked with the names of dozens of countries lie empty. It's a diplomatic enclave without diplomats, embassies or limousines - one of the most visible failures of Putrajaya, a multi-billion-dollar extravaganza of monumental avenues, lakes and dome-topped buildings.

Out of 26 millions Malaysians, Putrajaya's 60,000 residents are generally full of praise for their purpose-built town, with its clean air, wide boulevards and lush parks. Most are public servants who have been won over by subsidized housing, and facilities like shopping centers and cinemas that have gradually sprung up. "The facilities are very good - schools, nurseries and clinics - and you don't have to rush for everything", according to one public employee.

Despite the pleasant surroundings and the topiary along the highways, Putrajaya was a massive waste of tax payers money and that its architecture is grandiose and culturally inappropriate. The overwhelmingly Islamic-style buildings are out of place in a country which is dominated by Muslim Malays, but also home to large ethnic Chinese and Indian minorities.

The magnificent lakeside mosque as being designed more for tourists than the faithful, and the prime minister's office, a giant edifice topped with a green 'onion dome,' is downright arrogant.

'Palatial is alright if you're a king who owns the country, but we are a democracy and we're supposed to be ruled by the people. The total cost of building the capital has never been released but at least RM20 billion (S$8.5 billion) believed has come from public coffers.

For all its publicity growth rates, higher per-capital incomes and palatial government offices, Malaysia ranks among the most unequal societies in Southeast Asia in terms of income distribution.

In the capital, Kuala Lumpur, skyscrapers pierce the skyline, sleek light-rail transit trains glide on elevated tracks while young urban Malaysians in gleaming cars travel to work along roads lined with trendy shops. Malaysian-made Proton cars can be seen parked outside neighboring houses. But despite the trappings of progress, there is little welfare support for low-income and disadvantage Malaysians who are finding it increasingly tough to make ends meet.

Reports often point to the fall in absolute poverty levels in Malaysia—from 29 percent in 1980 to about 5-6 percent in 2000. But after critical analysis, one can tell that this figure is misleading. The income threshold used for the poverty line—currently a monthly household income of 510 ringgit (US$134) in western, peninsular Malaysia—is unrealistic given the present cost of living. It is no wonder Malaysia government can proudly tell its success story of poverty eradication program like New Economy Policy is working very well, that majority of Malaysians are well off and living in prosperity. With a poverty level set at monthly US$134, it is indeed very difficult if not impossible to find any family living in poverty in Malaysia and show up in UN report as a country that has highly successful economy policy in Asia.

According to the World Bank, Malaysia was one of the few countries in East Asia where inequality fell over the past few decades. But “despite this long-term reduction in poverty rates, the trend has reversed itself since 1990. Malaysia’s Gini coefficien around 0.49 is among the highest in the region. That is significantly greater inequality than the levels in poorer countries such as Indonesia (0.32), Vietnam (0.36), and Laos (0.37). It is also higher than Thailand’s 0.41 and the Philippines’ 0.46.