Gov't To Adopt NDI Concept As New Basis For Aid Distribution

PUTRAJAYA, Sept 30 (Bernama) -- The government will shift to a more meaningful measurement of poverty based on the concept of Net Disposable Income (NDI) as the basis for identifying target groups for aid distribution, said Datuk Seri Anwar Ibrahim.

The Prime Minister said the NDI concept would reduce exclusion errors and be more equitable.

"NDI will take into account the Basic Minimum Living Expenditure (PAKW), which refers to the cost of living necessary for a decent living, including expenses for food, clothing, accommodation, utilities and transportation, and will vary by location and household demographics," he said during his speech at the 2024 National Symposium: Eradicating Poverty here today.

The symposium, themed “Bersama, Berdaya dan Mampan” (Together, Empowered and Sustainable), outlines five initiatives: enhancing measurement, reforming poverty eradication funds, unifying data, changing attitudes and mindsets, and strengthening efforts to end poverty.

Anwar, who is also the Finance Minister, gave an assurance that the Cabinet would seriously consider the findings and input gathered at the symposium.

The Prime Minister said he wants Economy Minister Rafizi Ramli to compile and summarise all ideas and perspectives shared by the panel and participants attending the symposium.

“I can assure you that if this (symposium’s summary) is provided, the Cabinet will take these views into serious consideration.

"If possible by Wednesday, Rafizi can prepare an initial note so that we can take serious action and make this a priority in what is called fiqh aulawiyat (the jurisprudence of priorities)," he said.

As for the second initiative, Reforming Poverty Eradication Funds, Anwar said the government is committed to continuing fiscal reforms as part of efforts to restructure the economy towards sustainability.

He said this includes overhauling the subsidy structure to be more targeted, including social assistance and poverty eradication programmes.

The Prime Minister said that relying solely on government funding could undermine the sustainability of poverty alleviation programmes and place fiscal pressure on the government.

“To overcome this challenge, we need to harness more innovative financing methods such as social impact funds, public-private partnerships, and blended financing.

“Therefore, the government encourages contributions from various parties through the involvement of government-linked companies (GLCs), government-linked investment companies (GLICs), the private sector, and the third sector in joint financing initiatives to support community-based solutions,” he said.

For the third initiative, referring to Consolidating Data, continuous efforts will be made by the government to ensure that the database remains integral.

Anwar said it is important for the government to ensure that all relevant agencies collaborate by sharing data, information and resources to identify and resolve issues of hardcore poverty.

“These data sources will then be integrated into the Central Database Hub (PADU), which I launched in early January, so that the government’s aim of developing a single reference data repository for implementing poverty eradication programmes and various socio-economic programmes can be realised.

“Therefore, by 2025, the government aims to use PADU as the basis for determining eligibility and aid distribution, thereby supporting data-driven decision-making,” he said.

The fourth initiative refers to Changing Attitudes and Mindsets, while the fifth and final initiative, Strengthening Efforts to End Poverty, refers to using behavioural insights to understand the attitudes and behaviours of target groups in designing programmes to free a community or individuals from the clutches of poverty.

-- BERNAMA