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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.