Economic Aspects and Applied Policies of Poverty Reductionin Malaysia

Abstract

Poverty is multidimensional, involving not only income deprivation, but also ill-health, illiteracy, lack of access to basic social services, and little opportunity to participate in the processes that influence people's lives. Malaysia, a multiracial country, managed to drastically reduce the incidence of poverty and lessen income inequality while achieving rapid economic growth and maintaining racial harmony. What transpired in Malaysia during the 1970.2000 period was complex and challenging, requiring masterful management by the government of the varied demands of a heterogeneous population [1]. The incidence of poverty and hardcore poor in Malaysia has dramatically declined from 1970 to 2002. Poverty incidence in the rural areas has also been on the down trend from 60 per cent in 1970 to 11.4 per cent in 2002. Urban poverty is relatively lower, falling