poverty in malaysia

8/6/2019 Poverty in Malaysia

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poverty


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measurement

Using a poverty line income to demarcate poor

and non-poor households

Absolute poverty line is calculated in terms of the

income required to purchase a minimum foodbasket and other basic necessities like clothing.

The relative concept of poverty stresses income

inequality as its fundamental manifestation and is

reflected in the definitions of poverty in the lower

quintiles of the population, the welfare ratio and

the index of poverty


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Cause of poverty in urban areas

Urban poverty is not caused by the lack of

incomes alone but a multitude of factors

deeply rooted in social, economic and political

structures of the urban and these are often

linked to social, political and economic

changes at a regional, national and

international level.


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Cause of poverty in rural areas

Communities live at very low levels of

subsistence anddo not produce surpluses for

the market that cause of low productivity,

technology, skilled and knowledge.

Geography and location, access to land, credit

and markets are critical dimensions of rural

poverty.


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strategies Targeting the hardcore poor

Known as the Development Programme (1988)-involve

dthe creation of a

register and profile of hardcore poor households and the delivery of

appropriate projects to meet their specific needs such as additional

opportunities to increase their employability and income, better housing,

food supplements for children and educational assistance.

Collaborated with the private sector and non-governmental organizations

(NGOs)

Amanah Ikhtiar Malaysia (AIM) provided small business loans to the

poor, industrial training and job opportunities, educational support for

children of the poor and better housing.

Maintaining stable prices

implement fix a ceiling retail price for a certain item, after due analysis

of its market, including discussions with market players and provided with

a subsidy to producers and suppliers of the item to cover part of their

costs.


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UNEMPLOYMENT

-Unemployment is defined as asituation where someone of working

age is not able to get a job but wouldlike to be in full time employment.

-Unemployment is the state of anindividual looking for a paying job but

not having one.


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Types of unemployment

Cyclical unemployment - Cyclical unemployment occurs when the

unemployment rate moves in the opposite direction as the GDP growth

rate. So when GDP growth is small (or negative) unemployment is high.

Frictional unemployment - Frictional unemployment is unemployment

that comes from people moving between jobs, careers, and locations. Structural unemployment - Frictional unemployment is unemployment

that comes from people moving between jobs, careers, and locations.

Technological unemployment- this relate to production method involving

a good deal with mechanization. This naturally result in displacement of

labor and finally unemployment. Residual unemployment caused by personal factors such as old age,

physical or mental disability, poor work attitudes and inadequate training.


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Employment rate

The percentage of the total labor force that is

unemployed but actively seeking employment

and willing to work.


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Unemployment rate in Malaysia


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Causes of unemployment

Economy - For many years, the manufacturing has been thestrongest sector in the country until it is now being progressivelyreplaced by the services sector. The services sector requires peoplewho do not only possess the right technical knowledge, but alsothose who possess the right soft skills like interpersonal,

communication, wisdom, maturity and are business oriented. Quality of education find a greater certificate holder.

Choosy job seekers - candidates are expecting job offer to comewith a package.

Lack of guidance maybe there is need a closer feel to theemployment world.

Choosy employers demand what kind of employers that theywant.


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Effects of high rate unemployment

Decreased economy growth.

Increase crime rate social problem.

Increase government spending.


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Effort of government

Develop training program.

- KERJAYA : programmed was to create a group of

skilled and trained workers, thus reducing the

unemployment rate among fresh graduates.

- participants will be given on-the-job training and

receive a monthly salary of between RM1,200

and RM1,500.- help partner companies find part-time, contract

and permanent staff from this program.


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Provide job opportunity.

- The Government is concerned of the

difficulties face

dby retrenche

dworkers an

d

unemployed graduates and the anxiety felt by

their families. To assist them, the Government

will create a total of 163,000 training and job

placement opportunities in the public and

private sectors.


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- PROSPER : It is the Graduate Programmed was implementedin June 2005 to assist Bumiputera graduates in retail ordistributive business with training, financing and businessadvisory services. Participants are offered syariah-based

financing of between RM5,000 to RM50,000 with arepayment period of 3 to 7 years. To date, a total of 334businesses have been successfully established. To developmore young entrepreneurs, PUNB (Perbadanan UsahawanNasional Berhad) will expand the scope of the GraduatePROSPER Programmed to include those with skills and

technical certificates. An additional 400 graduates willbenefit from the programmed.


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Reduce foreign worker.

- The Government will continue to take steps to reducethe dependence on foreign workers and give priority to

hiring local workers.- Levy on foreign workers will be doubled for all sectors

except construction, plantation and for domesticmaids. The levy will be paid by the employers and notby the workers.

- Freeze the issuance of licenses to foreign laborrecruitment agencies and tighten the conditions forrecruitment of foreign workers by existing agencies.


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Encourage re-training.

- Give a special training and campaign that

improve the skill of workers.


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Conclusion

Workers must be actively involved in

upgrading their knowledge and skills.

Unemployment is a problem that we have to

control through effective labor management

and human resource policies. The negative

impact of globalization and external shocks of

the international economic system must bemitigated by prudent government

interventions.

poverty in malaysia

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