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Poverty in Johor is more severe than official report

A census in Segamat conducted by The South East Asia Community Observatory, led by scientists from Monash University and the University of Copenhagen, about income and chronic disease of local population. The census is sanctioned by Johor government.

The sample size is 21736 residents with this ratio 55% Malay, 18% Chinese, 17% Indian, Orang Asli 3% and others 6%.

A major finding is 40.2% of local residents in Segamat cannot fork out RM 1,500 within 24 hours for emergency purpose. This 40% group is considered absolute poverty, but the national census says only 3.8% Malaysia households are below the absolute poverty.

A big portion of Malaysians are poorer than average GDP because of very uneven wealth distribution.

Gini Coefficient in Malaysia is the second highest in Asia and the highest in South East Asia, more serious than Cambodia and Laos. The bad news is the higher the coefficient, the wealth distribution is more uneven and unfair among the rakyat.

In plain language, 80% wealth in Malaysia is controlled by 15% rich people and the remaining 20% wealth is shared by 85% majority of poor people. The have group is 22 times more richer than have-not group.

A national shame is not a single MP is pushing hard for Gini Coefficient data to be included in the national budget.

An income gap analysis I made two years ago still hold the water.

1. GDP per capita in 2009 given by IMF is USD 6897 (ref: http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(nominal)_per_capita)

2. 80% wealth controlled by 15% rich; 20% wealth controlled by 85% poor. (Source quoted from the World Bank)

3. 26 million population as at 2009.

The income distribution:

-15% rich Malaysians GDP per capita is USD 36784 per capita.

-85% poor Malaysians GDP per capita is USD 1623 per capita.

GDP >>>

China GDP per capita will overtake Malaysia by 2020

World bank data for GDP per capita by current USD

China in 2002: USD 1135 2011: USD 5430

Increased by 478%

[2020 projection: 25955 USD]

Malaysia in 2002: USD 4114 2011: USD 9656

Increased by 235%

[2020 peojection: 22663 USD]

With the projection, China GDP per capita will hit USD 25955 while Bodohland will hit 22663 by 2020.

I know many Malaysian Chinese still living in the closet by thinking China is still a poor country.

The destined fate is more Malaysians have to work in China by 2020 as maids, factory workers, prostitutes, roadside hawkers, etc.

If you also look at Bodohland’s national debt growth rate, our future is hitting a dead end under BN.

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The trick is face value is used as the baseline

UMNO is using FACE VALUE to calculate equity ownership to make sure it’s under estimate for bumi actual equity ownership.

Therefore, bumi equity ownerhsip will below 30% for another 50 year to justify NEP for bumi. I think it’s fair for bumi graduates to receive RM300 per month as per 1972′s salary scheme to justify face value methodology used (abused) by UMNO.

The reality is bumiputra equity ownership already more than 45% with the market value methodology, a universal standard used by all countries except Bolehland.

Bumi equity ownership rose to 23%: Najib

KUALA LUMPUR, April 23 (Bernama) — Bumiputra equity ownership rose to 23.09 per cent worth RM167.7 billion in 2010, up from 21.9 per cent worth 27.4 billion in 2008, Prime Minister Datuk Seri Najib Tun Razak said today.

He also announced the collaboration of the Unit Peneraju Agenda Bumiputra (TERAJU) with two companies under the TeraS programme — Ahmad Zaki Resources Bhd and MITC Ancasa Hotel (M) Sdn Bhd — which will see the award of supply contracts worth RM500 million to bumiputra firms in two years.

Najib, who is also Finance Minister, attributed the increase in bumiputra equity ownership to the implementation of policies that continue the bumiputra development agenda.

These policies had enlarged the role of bumiputra institutions such as the Pilgrims Fund Board (Tabung Haji), Lembaga Tabung Angkatan Tentera (LTAT) and Permodalan Nasional Bhd (PNB).

“All this has helped to bring about the very good increase in bumiputra equity ownership, and we also see the increasing capability of bumiputra firms which has also contributed to the rising percentage of bumiputra companies,” he told reporters after chairing a two-hour meeting of the Bumiputra Agenda Action Council here today.

On the possibility of achieving the target of 30 per cent bumiputra equity by 2020, Najib said it would depend on several factors including the prevailing domestic and foreign economic conditions and climate.

“According to our analysis, if the economy can grow like in the last one or two years and we can maintain this momentum, there is a good chance, Insya Allah (God willing), that the 30 per cent can be achieved by 2020,” he said.

The rise in equity ownership in 2010 is based on the total equity amounting to RM726.4 billion in that year compared to RM581.8 billion in 2008, he said.

Najib said the figure includes ownership by individuals, institutions with bumiputra interest such as Tabung Haji and LTAT, and trust agencies mandated by the government to increase bumiputra involvement in the economy such as PNB, Perbadanan Usahawan Nasional Bhd (PUNB), Majlis Amanah Rakyat (MARA) and State Economic Development Corporations.

The prime minister said 130 bumiputra companies have been identified under the TeraS programme and the collaboration between TERAJU and Ahmad Zaki as well as MITC Ancasa under the programme will create more business opportunities for smaller bumiputra firms in their quest to become bumiputra corporate giants in future.

Under the collaboration, Ahmad Zaki will develop a supply chain in the construction industry and offer supply contracts worth RM500 million, while MITC Ancasa Hotel will invest RM100 million over a three-year period to aggressively expand its business and create business opportunities for other bumiputra companies in the halal, logistics, cultural performances and other sectors.

Meanwhile, the Economic Planning Unit (EPU) in a separate statement said the the highest bumiputra equity ownership was in the finance, insurance and takaful sectors, which grew from 37.56 per cent of these sectors in 2009 to 38.97 per cent in 2010.

Bumiputra equity ownership in these sectors rose 22.5 per cent by value from RM53.35 billion in 2009 to RM65.37 billion in 2010.

Most bumiputra firms are in the wholesale and retail sector.

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This is only social news I pick from NST

There are poor Chinese too

By Rita Sim

Community suffers from misconception that it is succeeding economically because of hard work and discipline

A padi farmer in Sekinchan, Selangor. Chinese working in the agricultural workers are not covered by social safety nets like insurance or social security.

IT is a popular but mistaken perception that the Chinese-Malaysian community has always been affluent. It may not be an offensive pigeonhole, but it is a misleading idea nonetheless, one that fails to acknowledge the struggles of the poor Chinese and their need for assistance.

Even the Chinese themselves have been known to say: “Even the chicken rice seller is rich-lah, can drive Mercedes.”

It is true that the hawker stall operator should be given credit for his determination and hard work — traits also generally attributed to the Chinese community — but this unfortunately, gives rise to another perception: that the Chinese do not require assistance from the government because they have done well for themselves.

There is no denying that the Chinese community value financial security and wealth. Even today, the young Chinese in Malaysia remember the stories of hardship, passed down through generations, of how their forebears came to eke out a living in Malaya.

Parents bear these cautionary tales in mind, working harder to provide a better life for their families and always reminding their children that diligence and discipline lead to a good and rewarding job.

But it would be grossly simplistic to think that these admirable principles alone can enable the Chinese to achieve immense wealth.

Many Chinese families, even the urban, middle-class ones, struggle to make ends meet and are equally affected by economic issues that plague others in Malaysia, including the high costs of living, lack of affordable housing and doing business in a financially unstable environment.

The incidence of poverty among the Chinese has stubbornly remained at 0.6 per cent since 2004, but what is more worrying is the widening income gap between the Chinese rich and poor, a trend that is repeated across all ethnic groups in the country.

Poverty among the Chinese tends to be entrenched and invisible. Many live in new villages, rural and remote areas or urban poor areas.

A recent Sin Chew Daily article highlighted the plight of a family of eight living in a two-bedroom low-cost flat in Cheras. With a monthly household income below RM3,000, the family said that they could only wear old, donated clothes for Chinese New Year.

Many of the low-income Chinese work in the agricultural and informal labour sector, and are not covered by social safety nets like insurance or social security. This makes them vulnerable to problems like being unable to afford medical care, having no provisions for old age or being abandoned in old folks’ homes.

This situation drives many less-educated Chinese to Singapore, Hong Kong, Taiwan and China in search of better-paying jobs in the service and manufacturing sectors, as they feel that they are better able to make a decent living there.

The vicious cycle of poverty is also partly perpetuated by the Chinese education system. Although it is much touted as being academically superior, it can also prove to be a handicap as the students’ lack of proficiency in Bahasa Malaysia and English is a barrier to learning when they enter national secondary schools, causing some to drop out of school without any qualifications.

Yet the problems of the working-class Chinese remain hidden and people still believe that the community has done well by pulling itself up by its bootstraps.

This assumption is damaging. It implies that it is acceptable for socioeconomic initiatives to exclude certain races, which goes against the idea of 1Malaysia.

It also polarises our society, because some groups believe that the Chinese have it all and that they are taking more than their fair share of the pie by asking for equitable social services.

Clearly, it is fallacy and fantasy to think that any one ethnic group can claim to own all the wealth in the country. Look beyond the ultra-rich (who are present in all ethnic groups) and we can see for ourselves those who are living hand-to-mouth and struggling to support their families.

We need socioeconomic and educational policies that turn a blind eye to colour and aim to lift up the country as a whole. We need a system that is fair and provides equal opportunities.

More importantly, we need to have a national conversation about poverty without letting myths and misconceptions distract us.

http://www.nst.com.my/opinion/columnist/there-are-poor-chinese-too-1.50627

GDP >>>

> 80% of household earning is below RM3000 per month...mean what?

Malaysia GDP per capita in 2010 is estimated at US$ 8,624 or RM 27144, it translates to RM 2262 per month. In my estimation, at least 75% Malaysian earning is below GDP per capita.

Through my qualitative analysis, 85% Malaysians are living with actual GDP of RM 5100 per annum.

In Najib’s ETP, a major KPI that is Gini coefficient is missing. Gini coefficient is a measurement of the distribution of income among the people or how even the national income is distributed.

Malaysia is the second worst in the fair and even income distribution in Asia.

RM500 handout candies is prove the income distribution is truly uneven.

Needy folk say RM500 aid will come in handy

By YUEN MEIKENG and JOSEPH SIPALAN

KUALA LUMPUR: Many came by bus, others by motorcycle while a few walked to sign up for the RM500 aid given to households earning RM3,000 or less.

At Inland Revenue Board offices and several schools and other designated places, it was all smiles for recipients under BR1M, the Bantuan Rakyat 1Malaysia scheme.

Sivaranam Velayuthan, 61, said the money was very welcome, especially since he is now unemployed. He and his 60-year-old wife only get RM160 monthly welfare aid and depend on their two children to buy them food. Continue reading >> > 80% of household earning is below RM3000 per month…mean what?

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