Latest from Focus Malaysia
Focus Malaysia
19 minutes ago
- Business
- Focus Malaysia
Social protection programmes key to poverty reduction
MALAYSIA has stepped up efforts to reduce poverty in recent years through targeted social protection programmes, particularly those aimed at the B40 income category. However, the effectiveness and breadth of these programmes are called into question since growing living expenses continue to strain all income levels, including M40. The B40 in Malaysia's social protection environment Targeted assistance for the Bottom 40% (B40) income group is the central tenet of Malaysia's approach to reducing poverty. Programmes like Bantuan Sara Hidup (BSH), Bantuan Prihatin Rakyat (BPR), and the more recent measures unveiled in Budget 2025 aim to help low-income households cope with the rising cost of living. These initiatives provide needy families short-term financial relief through subsidies, housing assistance and cash help. The Department of Statistics Malaysia (DOSM) statistics, however, show that although these programmes provide short-term respite, they cannot significantly improve families' long-term economic standing. A recent report from DOSM states that the average income of B40 has increased by only 1.5% per year, which is not enough to keep up with inflation. Many people still have limited purchasing power as a result, particularly given the sharp increase in the price of food and housing. As such, Prime Minister Datuk Seri Anwar Ibrahim has underlined the government's will to address these problems, promising to lower costs and increase accessibility to necessities to ease financial burdens. Critics contend that monetary distributions could not alleviate underlying economic inequities despite these guarantees. 'Malaysia's B40 will continue to face an uphill struggle against poverty without structural reforms in education, employment, and wage policies,' one economist noted. Global social protection models: Achievements and insights for Malaysia Various social protection regimes worldwide have successfully reduced poverty, particularly when multifaceted and sustainable approaches are used. One programme generally commended for decreasing severe poverty is Brazil's Bolsa Família, which goes beyond cash transfers by requiring families to comply with health and education standards. This strategy has broken the cycle of inter-generational poverty, which has had a profoundly positive effect. Another practical example is the Basic Livelihood Security Program (BLSP) in South Korea, which combines financial help with housing assistance, skill development, and job support. By linking financial aid to social services and job training, the BLSP has decreased poverty rates and enhanced recipients' capacity to find steady work, encouraging long-term independence. South Korea's strategy emphasises the necessity of a comprehensive social safety net that fosters employment and skill development. Similarly, the European Union's 'Active Inclusion' approach supports beneficiaries by combining labour market reforms with social protection, offering financial assistance and work placements. Malaysian approach gaps: Going beyond financial aid Though Malaysia's B40 initiatives offer much-needed financial assistance, they don't have the same cohesive structure as nations like Brazil and South Korea. Due to the lack of a multifaceted strategy, B40 beneficiaries' ability to achieve economic independence is restricted. The main drawback is that Malaysia's social security system primarily uses short-term financial assistance to combat poverty rather than focusing on long-term empowerment initiatives. On the other hand, effective schemes, such as the BLSP in South Korea, strongly emphasise developing human capital, providing work opportunities and skill training to recipients as part of their social benefits. Another gap is the availability of affordable housing. Although Malaysian authorities have started projects to provide inexpensive housing, they are frequently focused in metropolitan areas where demand outpaces supply, underserving rural and peri-urban locations. Future directions for Malaysia: Establishing a Comprehensive social safety system Motivated by South Kore's BLSP and Brazil's Bolsa Família, Malaysia might benefit from implementing a more all-encompassing strategy that incorporates job assistance and skill development to improve the efficacy of social security. Working with social services and career development programmes might pave the way for the B40 to become resilient and financially independent. Furthermore, prioritising accessible education and universal healthcare will guarantee that fundamental necessities are satisfied, lessening the financial burden on low-income households. These steps would align with international best practices, calling governments to establish safety nets that do more than alleviate acute misery. Finally, increasing social protection in underprivileged regions might improve living conditions for low-income people in rural and urban areas, addressing regional disparity concerns. When Malaysia prepares for Budget 2025, adding these components might turn the B40 support system into a cornerstone for long-term, sustainable poverty alleviation. Using holistic reform to close the gap A move towards a more integrated strategy might enhance results for the B40 and beyond as Malaysia's social protection programmes continue to develop. As demonstrated by international examples, providing routes to education, work, and self-sufficiency is necessary to reduce poverty effectively. If these all-inclusive models are emulated, all Malaysians might gain from the country's progress, which could help Malaysia close the gap in economic inequality. ‒ June 20, 2025 The author is the Director of the Ungku Aziz Centre for Development Studies, Universiti Malaya. The views expressed are solely of the author and do not necessarily reflect those of Focus Malaysia. Main image: Bernama
Focus Malaysia
an hour ago
- Business
- Focus Malaysia
Anwar: Time not right for GST re-implementation because rakyat's income still low
THE Goods and Services Tax (GST) is an efficient and transparent taxation system, but it is not yet suitable for re-implementation because the rakyat's income threshold is still low, said Prime Minister Datuk Seri Anwar Ibrahim. Anwar, who is also the Finance Minister, said the government did not completely reject the proposal to re-implement the GST, but the ability of low-income people must be taken into account first because the taxation system has a comprehensive impact. 'We postponed (GST) because the income of the people was still too low. My opinion at the time was that people with an income of RM2,000 were still affected although we gave some exemptions. 'Sugar and rice are not affected, but when people buy other goods or ride the bus, indirectly GST (is imposed) meaning it is comprehensive,' he said during the Finance Ministry's monthly assembly on Friday (June 20). Anwar said the government believes that the re-implementation of GST should only be considered when the average income of the people has increased to a more reasonable level of at least RM4,000 a month. 'Let the people's income increase first, let's say the minimum salary is RM4,000 (a month), maybe at that time we can (implement it). 'Right now, there are people earning RM1,700 or RM2,000… Maybe I was not wise in making this decision, but my intention is not to introduce taxes that will have a detrimental effect on the lower-class people, that's all,' he said. Based on this view, Anwar said the government chose to implement a more targeted Sales and Service Tax (SST) from which the revenue would be used to increase allocations to key sectors of the country such as education and health. 'So this is our reason, we are taking this tax to return it to the people. The allocation for the Education Ministry from RM58 bil in 2024 has increased to RM64 bil this year. 'Similarly, for the Health Ministry, RM41 bil last year, we are adding RM4 bil a year (making it) RM45 bil,' he said, stressing that the government's priority now is to strengthen critical sectors and ensure transparent and effective management. Anwar stressed that any national fiscal policy decisions, including tax implementation, must be viewed from a macro perspective and not just short-term effects. At the same time, he acknowledged the government's weakness in terms of policy communication to the people, thus he called on all parties to provide more active explanations about the policies implemented to avoid confusion and baseless accusations. 'I hope my friends (in the government) will please explain. Sometimes we are defensive, we just let people attack and we don't respond… Indeed, our weakness is also in explaining (policies) because we assume everyone understands,' he said. GST was first introduced in Malaysia on April 1, 2015 as part of fiscal reforms to replace SST with an initial rate of 6 per cent imposed across the board on almost all goods and services except those exempted. However, GST has received widespread criticism from various sections of society for allegedly burdening consumers, especially the low-income group. The tax system was officially abolished on Sept 1, 2018 and replaced with SST. On June 9, the government announced that it would implement a targeted review of the Sales Tax rate and expansion of the scope of the Service Tax effective July 1 in line with strengthening the country's fiscal position by increasing revenue and broadening the tax base without burdening the people the most. The Sales Tax rate remains unchanged for essential goods while a rate of either five or 10% will be imposed on non-essential or discretionary goods. ‒ June 20, 2025 Main image: Reuters/Liesa Johannssen
Focus Malaysia
2 hours ago
- Business
- Focus Malaysia
Local tech sector holds steady with stronger growth expected in 2Q
COLLECTIVELY, the tech sector result was largely in line with expectations, with five companies meeting projections and one outperforming estimates. However, three players had numbers that missed expectations, due to slower order recognition, margin compression, and FX impact. Most players booked declining earnings, except for Coraza Integrated Technology (Coraza), which maintained its revenue despite margin pressures from ASP erosion, pre-opening expenses, and higher costs. Engineering support players continue to book robust revenue growth, seen as a precursor to growth in automated test equipment or ATE manufacturers as well as outsourced semiconductor assembly and test. 'Hence, we expect stronger numbers heading into quarter two (2Q) and the second half (2H), supported by a broader recovery across the semiconductor supply chain,' said RHB. Order and revenue trends remain constructive, supported by a sector recovery and potential front-loading activities, despite the ongoing uncertainty from US tariffs. Most management teams have adopted an optimistic tone, on stronger loadings with the replacement cycle, new product introductions, a demand recovery, and technology advancements. These trends are further bolstered by new opportunities emerging from China Plus One and Taiwan Plus One strategies. 'Our outlook still leans towards the positive, that Malaysia stands to benefit from US-imposed tariffs, via short-term rushed orders and long-term manufacturing reallocation activities,' said RHB. The country's robust ecosystem, talent pool, and infrastructure provide a competitive advantage. While excessive inventory build-up could raise demand uncertainties, the sector remains in an upcycle, showing minimal signs of major disruptions so far. Malaysian Pacific Industries and UNI are key beneficiaries of the chip sector recovery, China's demand rebound, and the commencement of new programmes and customers. On the domestic front, CTOS Integrated Technology is a standout, as it leverages on the digitalisation trend and has exposure to the fintech segment. Among the smaller-cap stocks, Coraza should see a sterling earnings rebound, supported by robust revenue growth. Tariff concerns slowing end demand, slower-than-expected orders, technology obsolescence, and unfavourable FX movements. —June 20, 2025 Main image: New Straits Times
Focus Malaysia
2 hours ago
- Health
- Focus Malaysia
Gastronomic nightmare: Bedridden for three weeks after eating sashimi
JAPANESE cuisine ranks among the top of the world, and there is no surprise considering that the Japanese have a penchant for perfection. And it goes without saying that fans of their culinary splendour need no introduction to the lip-smacking sashimi. Chilled, with a dollop of wasabi perhaps, the sashimi is one of the must-haves. Sounds like a dream and perhaps it is. But since sashimi is eaten raw, there are risks. Perhaps a recent viral video on X best illustrates the many risks of dining on the succulent, juicy, raw salmon meat. According to a lady in a video, she had a meal of sashimi in India. What happened next was a bout of dizziness so severe she had to call an ambulance. The simple sashimi dish made her bedridden for three weeks, and she had to learn to walk again. Yang selalu food hunting bila travel ke luar negara, hati-hati la ye. Tak sangka makan sashimi pun boleh jadi sampai macam ni 👇 — TikTok Berguna (@TikTokBerguna) June 19, 2025 Captions in the video suggested that she had septic arthritis, a complication caused from Typhoid which she suspected was due to the contaminated water used to defrost the sashimi. Netizens who watched the video immediately pounced on the fact that it was India where many of them pointed out the condition of the country which they deemed unsanitary. 'I would definitely not eat anything raw there. I know people who travel to India and won't even brush their teeth with the tap water. They use bottled water. It's the same with Bali, no raw food, no street food, no ice,' said @lizaisswift. Perhaps the winning comment went to netizen @NoobJepun who said, 'Sashimi and India should not be in the same sentence in the first place.' Also, @__fatihahh cautioned people not to drink and eat there. 'My relative's husband got an infection for drinking the coffee in the cafe there,' she said. @azarimy said Typhoid can be found in Malaysia too, that is why all the food operators are required to take the Typhoid vaccination. 'When I went to India sometime ago, I took the injection,' he said. According to a study by the National Library of Medicine, India recorded around 10 mil typhoid fever cases in 2021 alone, making it the country with the highest typhoid burden globally. Travelers to India may be exposed to a range of infectious diseases, including water-borne, water-related, and zoonotic illnesses. Some of these may be introduced into areas where such diseases are not typically found. The World Health Organization strongly advises all international travelers to ensure their routine vaccinations are up to date before departure. Away from the advise to vaccinate, we would like to further point out that food is cooked for a reason. —June 20, 2025 Main image: @TikTokBerguna (X)
Focus Malaysia
3 hours ago
- Business
- Focus Malaysia
Bursa Malaysia closes mixed, CI ekes out small gain on bargain hunting
BURSA Malaysia ended the week mixed with the benchmark index climbing 0.08 per cent, as bargain hunting emerged following the recent sell-off, said an analyst. At 5 pm, the FBM KLCI rose 1.30 points to 1,502.74 from Thursday's close of 1,501.44. The benchmark index opened 0.50 of-a-point lower at 1,500.94 and moved between 1,500.04 and 1,507.97 throughout the trading session. However, the broader market was negative, with 517 decliners outpacing 319 gainers, while 505 counters were unchanged, 1,083 untraded and 25 suspended. Turnover dropped to 2.60 bil units worth RM3.37 bil compared with Thursday's 2.81 bil units valued at RM1.69 bil. —June 20, 2025
