ERADICATION OF ABJECT POVERTY AND STREET BEGGING: MALAYSIAN

EXPERIENCE

Dr Nik Rahim bin Nik Wajis

Senior Lecturer, Faculty of Syariah and Law

Islamic Science University Malaysia

Phone: +6014 820 7111

Email: drnikrahim@usim.edu.my

1.0. Introduction

The Federation of Malaya gained independence from the British government and declared its

independence on 31st August, 1957. Malaysia is a multi-racial and religious country.

Population of Malaysia by age, sex and ethnic group, in February 2014 had reached 30

million according to Malaysia Statistics Department. The Department also stated that as at

2010, Bumiputras 1 make up 67.4% of the population, Chinese (24.6%), Indians, (7.3%), with

other races making up the remaining 0.7%. Malaysia was developing from an agricultural

country towards a developed industrial country by year 2020. 2

Even though Bumiputras which include Malays represent the largest number of population,

the economic and commercial sector. An estimated 70% of the Malaysian economy

dominated by Chinese who reside mostly in urban areas as a result of British colonization. 3

1- Bumiputera or Bumiputra is a Malay term widely used in Malaysia, embracing indigenous people of the Malay Archipelago. The term comes from the Sanskrit word bhumiputra, which can be translated literally as "son of land" (bhumi= earth or land, putra=son). It is also translated as "sons of the soil".In the 1970s the government implemented economic policies designed to favour bumiputras (including affirmative action in public education) to create opportunities, and to defuse inter-ethnic tensions following the extended violence against Chinese Malaysians in the May 13 Incident in 1969. These policies have succeeded in creating a significant urban Malay middle class. They have been less effective in eradicating poverty among rural communities. Some analysts have noted a backlash of resentment from excluded groups, in particular the sizable Indigenous Non-Muslim Orang Asli, Chinese and Indian Malaysian minorities. Source: http://en.wikipedia.org/wiki/Bumiputera_(Malaysia)2- http://www.thestar.com.my/News/Nation/2014/02/26/Malaysia-30-mil-population/3 - Malaysian Chinese are a socioeconomically well established middle-class ethnic group and make up a highly disproportionate percentage of Malaysia's professional and educated class, with a record of high educational achievement, a high representation in the Malaysian professional white-collar workforce, and one of the highest household incomes among minority demographic groups in Malaysia. Like in much of Southeast Asia, Malaysian Chinese are dominant in both the business and commerce sectors, controlling an estimated 70% of the Malaysian economy. http://en.wikipedia.org/wiki/Malaysian_Chinese

1

Therefore, when we discuss about abject poverty and street beggars it will be very much

focused on the races other than Chinese as the majority of them live in more comfortable lives

if compared to other races.

In this article the discussion regarding abject poverty and street beggars will be discussed

separately in order to understand the issues in a better and clearer pictures.

2.0. Definition of Poverty

Poverty is a multifaceted phenomenon and different societies have different perceptions of

poverty. There are three main classifications of poverty. Firstly, the absolute poverty

concept, one is having less than objectively-defined thresholds. Secondly, the relative

poverty concept, one is having less than others have in the same society. Thirdly, the

subjective poverty concept, one is feeling that he or she does not have enough to get along.

Literatures have shown that different poverty concepts are related to the development status

of the countries; calorie poverty (absolute) in less developed countries, expenditure or basic

needs (absolute) in developing countries, relative poverty in emerging economies and

subjective well-being in developed countries. Absolute poverty may disappear as countries

and regions become richer, but the relative deprivation and subjective poverty would persist.

In a diverse country like Malaysia with vast regional differences, a person in Sabah and

Sarawak (the highest poverty rate) might perceive poverty as the deprivation of basic needs

while a person in Selangor (the most developed state) might perceive poverty as the relative

deprivation. 4

The absolute poverty concept, can also be defined as (a) a person who is found begging in a

public place in such a way as to cause or likely cause annoyance to the prevailing visit that

place or to cause nuisance; or

(b) an idle person found in a public place, whether or not he beg, who do not have visible

means of subsistence or shelter or which cannot be said so himself satisfactory; 5

Some scholars defined poverty as those who do not have sufficient basic needs such as food,

shelter, clothes for a period of 1 year. 6

4 - Mohamed Saladin Abdul Rasool And Arifin Md Salleh, Statistical Data For Appropriate Poverty Measurements And Policy For Eradication: A Malaysian Case, Jurnal Ekonomi Malaysia Vol. 44 (December) 2011, Universiti Kebangsaan Malaysia (UKM).

5 - http://www.agc.gov.my/Akta/Vol.%204/Akta%20183.pdf6 - http://books.rafed.net/view.php?type=c_fbook&b_id=275&page=129

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3.0. Breakdown Poverty Level Among Population (Malay, Chinese, Indians and

Other races)

Based on the information collected from the website of Economic Planning Unit, the statistics

of poverty decreased every year since 1984. Based on the statistics, it shows that the Malays

and Bumiputeras are the highest in poverty, and the lowest are the Indians.7

However, poverty among Malay households shrank from about 17 per cent to three per cent,

while for the Chinese it dropped from about three to one per cent. For Indians it was reduced

from about six to three per cent and for non-Malay Bumiputeras, it fell from about 33 to 16

per cent. 8

The UN report also said the 2008-2009 global economic crisis had caused the national

poverty rate to rise to 3.8 per cent of citizen households in 2009, representing an estimated

228,000 households and an increase from 210,000 households in 2007. 9

4.0. Breakdown Poverty Level Based on States in Malaysia

Most of the abject poverty happens in the rural places in Malaysia. The report found that

Sabah had the highest poverty rate in the country at 19.7 per cent followed by the state of

Kelantan which is 15.5%, and Kedah which is 13.5. The lowest percentage of abject poverty

in Malaysia in 1984 is Kuala Lumpur which is 1.4%. 10

5.0. Government Efforts in Eradicating Poverty / Abject Poverty

In Malaysia, the government has provided many ways in helping the people that are living in

poverty, and those who are homeless. The followings are the efforts that had been carried for

that purpose.

7 - http://www.epu.gov.my/household-income-poverty8 - http://www.themalaysianinsider.com/malaysia/article/malay-poverty-share-falls-other-bumis-still-lagging#sthash.AQPfCsE4.dpuf

9 - Ibid10 - Ibid

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5.0.1. Introduction of Minimum Wage

In terms of the people’s income, National Minimum Wage Initiative was announced by the

Prime Minister in the Budget presentation on 15 October 2010. It is one of the policy

instruments through the New Economic Model (NEM) to transform Malaysia into a high

income nation inclusive and sustainable by 2020. This policy aims to ensure that employees

are able to meet basic needs and provide the appropriate atmosphere for the industry in

improving their production value chain. The policy is contained in the National Wages

Consultative Council Act 2011 and the rate recorded in the Minimum Wage Order 2012

which came into force on 16 July 2012 as listed below. The minimum wage is the base salary,

not including any allowances or other payments. Minimum Wage Policy also covers workers

who are paid by piece-work, tons of trips or commissions. Employers are required to pay

these workers if they do not reach the income of RM900 (USD273.00) per month in

Peninsular Malaysia and RM800 (USD 243.00) in Sabah, Sarawak and Labuan. With this

policy, there will be no exploits or low payment job, therefore, the people that are in poverty

can have a better life. 11

5.0.2. Low Cost House Project and Financial Assistance

The Malaysia government also launches a low cost house project, which may help the poor to

afford living in a proper house which is called “My Home Scheme”. This scheme gives the

people with a low income to buy a low cost house with a maximum subsidy, RM30, 000

(USD9120.00) This scheme is provided for those who have an income below RM3000

(USD912.00).

The government also launches a similar project, PBR (Program Bantuan Rumah) .This

program provides financial assistance and management to enable the target groups to occupy

the house safer and more comfortable than the previous residence. The goal of the program is

to improve their quality of life immediately. 12 The target group for this program is the abject

poor who are registered with e-Kasih system or SSPKR. Priority will be given to:

1. The elderly

2. Elderly and disabled

3. Single parents with many dependents.

11-http://minimumwages.mohr.gov.my/majikan/mengenai-dasar-gaji-minimum-malaysia/?lang=my12 - http://www.rurallink.gov.my/program-bantuan-rumah

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5.0.3. Home for Homeless

The government had made a place called “Anjung Singgah” in an effort to help the homeless

to provide space for them to live independently. It provides temporary shelter, food and a

center set up interventions to prepare them to face the challenges of life. Individuals,

Corporate Companies and anyone who is interested to join together to help the homeless are

welcomed. 13

5.0.4. One-off Cash Payment

During the recent Budget 2012 presentation, the Government has announced to give out a

one-off cash payment of RM500 (USD152.00)  to households with an income of less than

RM3,000 (USD912.00) a month. This assistance is one of the various initiatives undertaken

by the Malaysian government to alleviate the burden of low-income earners in facing the

rising cost of living.

An eligible household refers to a man or woman who holds lead responsibility for all those

living in the household. This includes individuals who are:

1. Married including married children living with parents;

2. Single mothers or fathers with dependents;

3. Single individuals (bachelor, divorcee, single mother) with dependents; and

4. Senior citizens without commodity.

Recipients of assistance under Jabatan Kemajuan Masyarakat are also eligible for 1Malaysia

People’s Aid (BR1M).

Also automatically eligible for 1Malaysia People’s Aid (BR1M) are the registrants of the e-

Kasih programme.

And for the 5.2 million households earning less than RM3000 (USD912.00) a month, the

RM500 (USD152.00)   assistance will bring about a significant change. 14

13 - www.yknm.org/#!anjung-singgah-ykn/cdsh14 - http://www.barisannasional.org.my/en/br1m

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5.0.5. Creating Jobs

1AZAM Movement Program consists of four components, namely AZAM Tani, AZAM

Niaga and AZAM Kerja and AZAM Khidmat initiatives aimed at creating jobs and

entrepreneurship, in line with the government's efforts to eradicate abject poverty.

Consistent with the goal of reducing the poverty rate to 2.8 percent by the end of 2010, efforts

were made to strengthen the earning capacity of the rural poor.

The report said the government has established the People's Welfare Development Scheme

(SPKR) to implement programs to increase the income, skills training and capacity building

as well as provide Excellence in Education Program in order to help the disabled.

In addition, the government continues its efforts to provide affordable housing and repair

dilapidated houses under the Housing Assistance Program to benefit 1,368 households.

In the meantime, until July of this year, a total of 3,255 women underwent skills training and

entrepreneurship programs under the Department of Women and Ikhtiar Malaysia (AIM).

Ministry of Federal Territories and Urban Wellbeing has launched a Strategic Plan for the

period 2010 to 2014 to address urban poverty in a holistic manner, including providing

assistance to households with income below RM3,000 per month.

To support the urban poor into a small business, the government introduced the Urban Micro

Credit program managed by AIM and take advantage of 16.907 applicants in the first eight

months of this year.

According to the Economic Report, continued efforts have been made to provide affordable

housing to the people, especially the lower and middle income by launching a scheme that

allows contributors Flexible Spending Employees Provident Fund (EPF) using your existing

account to obtain funding two more high.

In addition, the government also established the Housing Credit Guarantee Corporation

(SJKP) to guarantee bank loans for those without fixed income as well as offering low-cost

houses to be sold to current tenants by the Kuala Lumpur City Hall (DBKL).

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5.0.6. 1Malaysia Clinics

In addition to increasing revenue, the government has also focused on health aspects in which

the focus was on building and upgrading hospitals and clinics. A total of 51 premises have

also been modified to 1Malaysia clinics in selected urban areas in Selangor, Kuala Lumpur,

Penang and Johor.

5.0.7. Community Rehabilitation Program

In the meantime, the government remains committed to providing welfare assistance to

persons with disabilities (PWDs) through the implementation of the Community

Rehabilitation Program and increase the monthly allowance of RM50 to RM150 for each

disabled children enrolled in special education schools run by non-governmental

organizations (NGOs ).

5.0.8. Investment Tools

To provide investment opportunities and improve people's income, the government has issued

Sukuk 1Malaysia which guarantees a rate of return of 5.00 per cent per annum to be paid

quarterly and provides flexibility to shareholders to buy and sell before the maturity date.

5.0.9. 1Malaysia Retirement Savings Scheme

To help the self-employed and those without fixed income, the government has introduced the

1Malaysia Retirement Savings Scheme with a minimum contribution of RM50 to RM5,000

per month.

5.0.10. Deveoping Waqf (endownment)

To develop waqf property, a total of 69 areas were identified as having potential for

development Endowments Endowments Mart and Bazar Rakyat to the benefits of Muslims,

especially those who qualify through income generation as well as education and social

welfare programs. 15

15 - http://kklw.bernama.com/news.php?id=535615

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5.0.11. 1Malaysia Shops

Kedai Rakyat 1Malaysia was inspired by Prime Minister of Malaysia due to his concern over

the increasing cost of living affecting the low income rakyat living in the urban areas. Based

on a mini market format, Kedai Rakyat 1Malaysia provides various basic necessities at low

prices in convenient urban locations. Kedai Rakyat 1 Malaysia is part of the 1Malaysia

initiative, initiated by the government. 16

Before 1970, Malaysia's development policies aimed primarily at promoting growth with

more emphasis on the export market. Although the economy grew rapidly during this period

at an annual average of 6.0 per cent, there is a lack of emphasis in terms of distribution,

resulting in an imbalance between ethnic groups with a negative impact in the form of social

unrest in the 1969 race.

The launch of the New Economic Policy (NEP) in 1971, a history of Malaysia's economic

plan. NEP emphasizes the importance of achieving socio-economic objectives in line with the

objectives of economic development as a way of creating harmony and unity in the country

with many ethnic groups and religions. The main goal is the unity of the country. To achieve

this goal, two main strategies have been established:

To reduce poverty, irrespective of race through rising income levels and increasing

employment opportunities for all Malaysians.

To restructure society to improve the economic imbalances to reduce and eventually eliminate

the identification of race with economic function.

One important aspect of the NEP is located in the premises of a rapidly growing economy.

The development is a necessary condition to provide opportunities for the poor and

disadvantaged to enable them to escape from poverty and participate in mainstream economic

activities. Furthermore, it ensures that the distribution does not occur on the reallocation of

existing wealth, but of development and new sources of wealth. Implementation of strategies

for eradicating poverty and restructuring society to produce significant improvements in the

distribution of income by 1990. The rate of households living below the poverty level

declined from 49.3 percent in 1970 to 16.5 percent in 1990 and declined further to 5.1 percent

in 2002.

16 - http://www.kedairakyat1malaysia.com.my/

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In terms of corporate equity restructuring, more than two-thirds of Malaysia's corporate equity

owned by foreigners in 1970, while the indigenous, native people who represent two-thirds of

the population, has only a little more than 2 percent. NEP targets a restructuring of 30:40:30,

where by 1990, holding that the natives should reach 30 per cent, other Malaysians and

foreigners 40 percent to 30 percent, in the context of a growing economy. In 1990, the

Bumiputera equity rose to 20.4 percent of total corporate equity, and other Malaysians

holding increased to 46.8 per cent and 25.1 per cent for foreigners. While Indians did not

reach the target of 30 per cent equity by 1990, the progress made by them are quite large

compared to their position in 1970. By 2002, due to the amount of the equity to grow rapidly,

holding all groups increased in absolute value. While the foreigners fell to almost one-third,

its value increased 30-fold compared with their position in 1970. The poverty reduction

strategy Malaysia has always focused on human resource development and quality of life

improvements. Related programs emphasize income generating projects and not welfare,

except in exceptional cases where direct assistance given. 17

5.0.12. Departments responsible for Eradication of Poverty

The government had tried their best to eradicate poverty in Malaysia. Some of the

departments that are responsible for eradication of poverty are the Minister of Federal

Territories, which carries the mission to lead the progress and development, improve the

quality of life and eradicate poverty in Federal Territories. Some of the objectives of the

Minister of Federal are generates sustainable economic growth through a sustainable Federal

Territories Development Plan for the creation of more job opportunities, minimizes the

problem of hard core poverty in Federal Territories through programs which can increase the

income levels of the people and establish more residential areas which are conductive for the

comfort and well-being of people of all walks of life. The Ministry of Federal territories was

established in 1979 to carry out the duties and functions as set out in Ministerial Functions

Act 1969. At that time, the Ministry of Federal Territories also served as the planning and

development coordinator of Kuala Lumpur and the Klang Valley in line with the

establishment of the Klang Valley regional planning Council and Klang Valley Regional

Planning Working Committee. The restructuring of the cabinet on 27 March, 2004 has seen

the Ministry of Federal Territories re-established to give special attention to the development

of the Federal Territories (Kuala Lumpur, Labuan and Putrajaya ) in addition to being

responsible for coordinating the Klang Valley planning in the Ministerial Functions Act 1969

17 - http://www.epu.gov.my/dasar-ekonomi-baru

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( current amendment) . On 23 October, 2009, during the 2010 Budget presentation, the

Honorable Prime Minister announced that the functions and responsibilities of the Ministry of

Federal Territories were strengthened and expanded to eradicate urban poverty across the

Country and to implement urban wellbeing programs. Accordingly, on 13 November 2009,

the Ministry of Federal Territories was officially known as the Ministry of Federal Territories

and Urban Wellbeing. 18

Social Welfare Department also is a government department that focus on those who are

homeless and in need of protection can be defined as the destitute under the Destitute Persons

Act 1977. 19 The Department of Social Welfare periodic and ad-hoc persisted for rescue

operations comprising destitute beggars and the homeless . 20

5.1. The Roles of NGO’s in Eradicating Poverty

In eradicating poverty, the Non-Government Organizations (NGO) also plays and important

role in helping the government to counter the problem of poverty in Malaysia. There are lots

of NGO that are helping the homeless and beggars in Malaysia, some of them are Institut

Memali, The Nasi Lemak Project, Brickfields Stakeholders Association, Need to Feed the

Need (NFN), CFC, Pax Romana ICMICA, Dapur Jalanan, Persatuan Kesedaran Komuniti

Selangor, Dignity International, Food Not Bombs Kuala Lumpur, Reach Out Malaysia, KL

Urban Fellowship, Region of Love, Institut Rakyat dan SALT Movement.

The NGO in Malaysia tried their best to supply food and basic needs for the homeless to

survive.

5.2. The Role of Zakat (Alms Tax) in Eradicating Poverty

18- http://www.kwp.gov.my/index.php?option=com_content&view=article&id=60&Itemid=309&lang=en

19 - Destitute is a person found begging in a public place in such a way as to cause or likely to cause annoyance to people who commonly visit that place or to hold a nuisance or an idle person found in a public place, whether or not they begging, which has no points means of subsistence or shelter or can not say it himself with distinction. Related Acts:• Destitute Persons Act 1977 (Act 183)

20 - http://www.jkm.gov.my/

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Zakat 21 or Alms Tax also plays a very important role in eradicating poverty in Malaysia.

According to a source from the Islamic Religious Council of Federal Territory (MAIWP), the

council had spent RM4.59 million from the Zakat money to help poor families to buy school

uniforms and equipment for their children for the school session in 2015 session.

This assistance was delivered to a total of 20.377 7.545 receiver consists of primary schools,

10,079 secondary schools and 2,753 primary school students of religion.

The religious council also has allocated RM55.6 million for the charity fund assistance in

the form of an academic purposes. In addition to the assistance of charity in the form of

schemes, the religious council also developed educational institutions such as kindergartens

Islamic religious council Religious Secondary School, Secondary School Science Tahfiz

integrated, Baitulmal Skills Institute, Baitulmal Professional Institute and the International

College of Medical Sciences PUSRAWI. 22

Zakat (alms tax) come from various type of zakat such as zakat income, zakat commerce,

zakat deposit, zakat KWSP, zakat share, zakat gold and silver, zakat harta, zakat plants, zakat

farms and qada zakat. In Selangor Malaysia, the Selangor Zakat Foundation had collected

RM432.2 million in 2012 compared to RM376.1 million in the previous year.

21 - Zakat obligation is an obligation that is a blessing and a continuing impact not only on those who took it, but also those who receive it. Implementation of zakat affects not only the individual, but also affects the whole society. Zakat also play a role in improving the welfare of the community and help boost economic activity. Zakat is capable of eroding the pride of the rich and the poor avoid iSkin of begging. Assets acquired the rich actually are part of the poor and the rich pay the duty of such rights. Allah has enjoined Zakat as one of social security to the people, especially to those in need, increase economic growth is balanced by the redistribution of wealth in society and as a form of purification and spiritual development of every Muslim. Zakat also acts as a crucial mechanism for an Islamic state to guarantee the welfare of the people as a whole. Charity also has the ability and the power to eradicate poverty and ensure the balance of the gap between rich and poor through the mechanism of redistribution of wealth in society. Zakat is a fixed income and the duty to always be carried out by a Muslim country and it will not be interrupted. Therefore, the Islamic countries can use zakat resources to build economic strength, social, educational, and eventually be able to build the strength of Muslims indirectly build a strong unity of the Ummah. The problem of eradicating poverty is the main purpose of zakat in Islam by providing subsistence and adequate capital for those who wish. Subsistence of this charity is provided to those who are unable to work for reasons of disability or the like. Capital is allocated to those who can work but do not have the capital to carry out the work. Both of these provisions are adequate given the rate in accordance with the economic situation, time, place and purpose of the poor. Subsistence shall be sufficient to eat, drink, clothing, shelter, education and health. While capital should be adequate levels of capital projects to be undertaken. Subsistence and capital grants and other purposes is adequate rates. Rates sufficient for subsistence taken from the five basic needs must be given for the needy may be deemed necessary by the group or even for the rest of his life by way of monthly and so on. Aside from the eradication of poverty, charity is also a tool to combat the problem of the curse of Allah laptop on the parties involved in the process of laptop. With capital adequacy means escape door system imposed usury lending. Capital of zakat can be given to the poor who wish to open a job best of his ability, either as cash or as an interest-free loan. Source from http://www.izakat.com/22 - Ibid

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The number of citations to follow the segment's largest charity donated by Zakat Income

(RM260.5 million), followed Zakat Commerce (RM85 million); Zakat Deposit (RM30.5

million); Zakat KWSP (RM7.8 million); Zakat Shares (RM7.8 million); Zakat of Gold and

Silver (RM2.1 million); Zakat Harta (RM34.6 million); Zakat Plants (RM2.6 million), Zakat

farmed (RM0.03 million) and Qada Zakat (RM1.4 million). 23

5.3. Education as a tool of poverty Eradication

There is no doubt that education is one of the best ways to eradicate abject poverty. One of

the main problems of poverty in Malaysia as well as other countries is lack of education.

Majority of people who live in poverty, are not well educated. Lack of education means less

opportunity for better job which associate with a better living standard.

In a survey conducted on the respondents consisted of 40 men and 101 women, the majority

aged between 51 years and above showed that most of the respondents were widowed (70%)

of the average uneducated. Only 7.8 percent of respondents had attended high school.

Otherwise primary school (33.3 percent) and education (58.9 percent). 24

This shows that most respondents did not have a formal education and this affects the poverty

they experience. This is because nearly 56 percent of respondents earning RM100 and below

and 40.4 per cent were earning between RM100 and RM300.

Nearly 61.7 percent of those who did not work (for elderly) and due to low educational

background. 25

In Malaysia, the government had introduced minimum wage policy which is RM900

(USD273.00). For those who has a degree, the basic salary is around RM2, 500 (USD714.00)

which is considered quite reasonable income if compared to some other countries.

Therefore, members of society needs to be given opportunities for adequate education to

make their children become more educated, career-minded and as a result would be able to

shift themselves and their families out of poverty.

The education sector should also be given due attention by the government as it is one of the

most effective in the eradication of poverty. 26

23 - Ibid24 - http://www.ukm.my/news/index.php/ms/berita-penyelidikan/143125 - Ibid

26 - Ibid

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5.4. Business as a tool of poverty Eradication

In an effort to improve the income and living standards of the people, the government of

Malaysia is focus on eradicating extreme poverty and urban poverty, help the poor and

vulnerable, increasing home ownership, expanding public health facilities and strengthening

the network social security.

According to the 2010/2011 Economic Report, to further alleviate poverty in rural areas, the

government continued surge in mega scheme involving integrated land development for

agriculture, as well as update the e-Kasih database to identify and help the poor.

1AZAM Movement Program consists of four components, namely AZAM Tani, AZAM

Niaga and AZAM Kerja and AZAM Khidmat initiatives aimed at creating jobs and

entrepreneurship, in line with the government's efforts to eradicate abject poverty.

Consistent with the goal of reducing the poverty rate to 2.8 percent by the end of 2010, efforts

were made to strengthen the earning capacity of the rural poor.

The report said the government has established the People's Welfare Development Scheme

(SPKR) to implement programs to increase the income, skills training and capacity building

as well as provide Excellence in Education Program in order to help the disabled.

To support the urban poor into a small business, the government introduced the Urban Micro

Credit program managed by AIM and take advantage of 16.907 applicants in the first eight

months of this year. 27

5.5. The role of Riches in Society

The rich people also can play an important role in eradication of poverty. The rich people

should have awareness about the poor around them in the society. They should not just wait

for the government to lend a hand to the poor, they should help them out as much as they can.

The rich should not worry about become poor because of giving out their wealth to help the

unfortunate because Allah had promised that they will become richer by helping others.

Charity invite God's grace and for God to open the doors of sustenance and great rewards.

The Prophet's s.a.w said:

“Sadaqah is multiplied 700 times.”

27 - http://www.moa.gov.my

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Benefit for people who donate is huge as there is evidence in the Quran and Hadith. If we

were to observe the following verse of the Qur'an, we can calculate that at least every wealth

issued to the path of Allah will be rewarded with a count of more than 700-fold.

Allah Ta'ala says:

"The Parable (maintenance incurred by) those who spend their wealth in the way of Allah is

like a seed which grows seven points, in every particular hundred grains. God multiplies (the

reward) for whom He wills. And Allah is vast (bounty) is omniscient ". 28

In another verse Allah s.a.w says:

"Those who give alms, both men and women, and loan to Allah a beautiful loan, He will be

doubled (the reward) for them; and for their reward." 29

Allah says: "And those who fear Allah, will be presented to them a way out. And given them

sustenance of the road unexpectedly. And whosoever puts his trust in Allah, then He will

suffice him. " 30

6.0. Street Begging Problems in Malaysia

Street begging is a raising issue in Malaysia. It seems that Malaysia have become a haven for

foreign beggars who can earn up to RM8,000 a month from donations by kind locals. The

beggars problems become more serious when these beggars are believed to have entered the

country with the aid of syndicates by abusing their social visit passes. 31

According to a report, Malaysian Immigration officers have arrested 14 Chinese nationals,

and seized RM16,000 (US$5,081) in cash, which is believed to be one month’s income

collected from begging. Aged 40 to 80, those arrested were believed to have entered

Malaysia on tourist visas and were able to live well in the country by begging. With each of

them collecting between RM800 (US$254) to RM1000 (US$318) monthly they decided to

stay on in Malaysia rather than return to China.

Based on another report, a 30-year old Chinese beggar told the Malaysian Chinese

Association (MCA) Public Services and Complaint Department that a professional Chinese

28 - (Al-Baqarah (2): 261)29 - (Qs. Al-Hadid: 18)30 - (At-Talaq: 2-3)31 - http://www.thestar.com.my/story/?file=%2f2010%2f8%2f23%2fnation%2f6902765&sec=nation

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beggar in Malaysia could make up to RM10,000 (US$3,176) per month, which is two or three

times more than a white-collar worker. 32

This issue had prompted the Federal Territories Ministry to release a statement that the

ministry will impose fines and other penalties on the givers of alms and beggars in several

focal areas to reduce the begging culture that tarnishes the image of the federal capital. The

ministry also will introduce a rule where a summons will be issued to those giving alms and

haul up the beggars as most of them are foreigners. According to ministry the legislation will

tighten. 33

This problem cannot just be ignored and neglected because it can have adverse effects on the

environment, economy and social. The negative effect of beggars in terms of the environment

is the existence of the beggars may portray a bad image to Malaysia. It has been reported

many complaints had been received from the public about the presence of beggars and

vagrants in various area which give the country a bad image especially to foreign tourists. 34

6.1. Begging in Islamic Perspective

In Islam, the act of asking or begging is one of the forms of humiliation, even the Prophet

threatens people who ask, with the threat of hell fire on the Day of Resurrection, and opened

the door to poorness.

Prophet said:

باب , , عبد فتح وال عزا الله زاده إال عليها فصبر مظلمة عبد ظلم وال صدقة من عبد مال نقص ما

فقر عليه الله فتح اال مسالة

"The wealth will not be reduced due to a charity, a person who had been mistreated and still

be patient, God will confer him the glory, and anyone who opened the door of begging, God

will open doors of poorness for him" 35

There are so many traditions that threaten people who make the act of asking or begging as a

job, but he still has the strength and ability to earn income correctly. 36

32 - http://www.theepochtimes.com/n2/world/malaysia-tackles-begging-gangs-41999.html33 -http://www.themalaysianinsider.com/malaysia/article/beggars-and-those-who-help-them-face-a-fine-says-minister-bernama#sthash.eOXxUM9Q.dpuf

34 - Mohd Ramlan Mohd Arshad, A-Ain Zubaidah Mustafa Kamal and Nur Dalila Arif, Street Begging in Kuala Lumpur, DOI: 10.7763/IPEDR. 2014. V 78. 1

35 - (Sunan At-Tirmidhi, no. 2325)36 - http://atsar.ilmusunnah.com/index.php?route=product/product&product_id=745

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The culture of begging is not from Islam because Islam calls on its followers to strive and

work to support themselves and family members. Begging is illegal for those to have the

strength and ability to earn a living. 37

6.2. Malaysian Authorities Efforts to Curb the Street Begging Problems

According to some people, the best method to tackle this problem is by refusing to give

beggars money, leaving them with no choice but to return to their own country to earn an

honest living. 38 However it is not as easy as it sounds given the fact that Malaysian people in

general are very generous.

There are various approach that that had be taken by Malaysian authorities to solve the street

begging problems. The Malaysian authorities are very serious in tackling the problems of

street begging. Various opearations had been carried out nation wide.

For example in the year 2013, a joint operation carried out by the Kuala Lumpur City Hall

(DBKL) has transported a total of 965 homeless and found 125 of them are illegal

immigrants. In 2014 (until May) total 117 homeless people have been successfully transported

through integrated operations conducted and found 21 of them are illegal immigrants. 39

According to The Women, Family and Community Development Ministry, plans to amend

the Destitute Persons Act 1977 to introduce the element of enforcement to curb begging

activities are on the way. Its minister Datuk Seri Rohani Abdul Karim said the existing law

only provided for protection and rehabilitation of beggars. The government also wants to get

rid of syndicates believed to be behind the begging activities. Rohani said among the penalties

proposed were imprisonment, compound fine and community service for those who exploited

others to engage in begging or who made begging their choice of work. 40

37 - http://www2.bharian.com.my/articles/Harammintasedekahbagiberkemampuan/Article/38 - http://www.thestar.com.my/story/?file=%2f2010%2f8%2f23%2fnation%2f6902765&sec=nation

39 - http://m.themalaymailonline.com/what-you-think/article/government-serious-in-handling-beggars-and-homeless-in-kl-federal-terr40 -See more at: http://www.themalaymailonline.com/malaysia/article/government-to-amend-act-to-curb-begging#sthash.AkSnVqri.dpuf

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7.0. Recommendation

In order to resolve the issue of abject poverty and street begging , it is recommended that the

government should review the economic policies to ensure that those policies include those

in the poor categories who stay in urban and rural areas. The welfare of those in need should

be addressed and tackled more seriously. Failing to do so, the problem of abject poverty and

street begging would not be able to solve and thus will create more serious societal

problems.

The government agencies as well as Non-Government Organization should play more

significant role in solving these problems.

The Government must ensure that basic needs of the poor people are adequate such as food,

utilities and housing cost which in increasing trend because these are among other factors

which can contribute to abject poverty and street begging in Malaysia.

8.0. Conclusion

1. The responsibility to fight and eradicate the abject poverty and street begging is not

only responsibility of the government agencies. All parties must come forward and extend

their assistance simply because these two problems are not the government’s problems

alone. The effects of these problems sooner or later will be faced and felt by everyone in the

society.

2. Malaysia managed to reduce poverty level from around 50% in 1970s to 22.8% in

1990s and to only 5.7% in 2009. Malaysia is very ambitious to reduce the poverty level to

zero by year 2020.

3. Despite this positive progress in eradicating abject poverty and street begging,

incidences of poverty and street begging can still be found and they vary considerably by state

and among the various ethnic groups. Therefore, more efforts should be given to ensure a

better success in combating abject poverty and street begging in Malaysia.

9.0. References

[1] Shireen Mardizah Hashim, Income Inequality And Poverty In Malaysia, 1999, Rowman &

Littlefield, USA

17

[2] Osman Rani Hassan Rajah Rasiah , Poverty and Student Performance in Malaysia,

International Journal of Institutions and Economies, Vol. 3, No. 1, April 2011, University of

Malaya

[3] Department of Welfare. Statistic on beggars in Malaysia. Ministry of Women, Family and

Community Development of Malaysia. 2013.

[4] E. E. Yassin Abdalla and S. Narimah. Political economy and urban poverty in the

developing countries. Lessons learned from Sudan and Malaysia. Journal of Geography and

Geology, 4(1). 2012.

[5] Economic Planning Unit. Statistic on the household income and Poverty Line Income in

Malaysia. Prime Minister Office of Malaysia. 2013.

[6] News Strait Time. Begging in the street. Retrieved: http//www.nstp.com.my (Accessed on

5 November 2014).

[7] News Strait Time. The urbanization and urban poverty. Retrieved:

http//www.nstp.com.my (Accessed on 5 November 2014).

[8] N. Samat, Fatimah Hijles Mahdi, Aslinda Osman. Application of geographic information

system in identifying deprived areas. Paper presented at the 7th international Malaysian

studies conference. 2010.

[9] The Borneo Post. The street begging issue. Retrieved:http//www.theborneopost.com.my

(Accessed on 5 November 2014).

[10] The Edge. Urban development and urbanization in Malaysia's city. Retrieved:

http//www.theedgemalaysia.com

(Accessed on 5 November 2014).

[11] The Star. Begging issue. Retrieved: http//www.thestar.com.my (Accessed on 5

November 2014).

[12] UNICEF. National Performance Gap. The Progress of Nations, pp-33-34. 1990.

[13] Boo Teik Khoo, Policy Regimes and the Political Economy of Poverty Reduction in

Malaysia, 2012, United Nation Research Institute for Social Development 2012, London.

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Attachments

Statistic of Zakat collected in Malaysia for year 2002 and 2003 41

State 2003

(RM Million)

2002

(RM Million)

Changes

(%)

W.P Kuala Lumpur 92.90 80.85 14.9

Selangor 77.92 70.76 10.1

Terengganu 34.62 27.88 24.2

Johor 26.01 21.59 20.8

Perak 17.40 16.58 4.9

P.Pinang 19.07 17.89 6.6

Pahang 16.68 14.57 14.5

Kedah 18.32 18.07 1.4

Kelantan 13.88 12.01 15.6

N.Sembilan 14.01 12.61 11.1

Melaka 11.20 10.70 4.7

Sarawak 7.77 11.26 31

Sabah 2.68 3.11 13.8

Perlis 4.52 5.54 18.4

Total 357.06 323.50 10.37

41 - http://repo.uum.edu.my/732/1/Hairunnizam_Wahid.pdf

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