Thailand
Malaysia’s urban poor prefer income-generating assistance to cash handouts post-MCO, new Unicef-UNFPA study shows
KUALA LUMPUR, Aug 24 — The cash handouts provided by the government to assist low-income households in cities during the Covid-19 pandemic has been helpful, but most would prefer sustainable assistance instead, according to a new study by Unicef and the United Nations Population Fund (UNFPA) released today.
Titled “Families on the Edge”, the study focuses on the impact of the Covid-19 pandemic on Malaysia’s urban low-income families during the movement control order (MCO), first imposed on March 18.
Public policy and research institute DM Analytics’ managing director Muhammed Abdul Khalid, whose organisation conducted the study in partnership with Unicef and UNFPA, said the most common form of preferred sustainable assistance is micro-loans.
“Many of the respondents said they would like micro-loans to start their own businesses, so they could remain afloat during the MCO,” he said at the launch here this afternoon.
Muhammed cited one respondent who said a microloan would enable him to purchase cooking equipment to set up a burger stall.
“Essentially they want the ability to generate income, rather than handouts to reduce their costs,” he said.
The study also indicated that respondents prefer longer-term aid. Nearly all of the 500 households surveyed said they receive government aid in the form of Bantuan Prihatin Nasional (BPN) Bantuan Sara Hidup, Baitulmal, and others.
It is also understood that the aid monies did not end up being abused to purchase substances including alcohol or tobacco products, but accessing aid remains a problem for some.
A handful of households face issues due to illiteracy, procedural issues, do not qualify due to the registration of their business with the Commission of Companies, logistical issues, among others.
Unicef Malaysia’s social policy chief Stephen Barrett said the government’s recovery plan including Penjana and other forms of assistance such as BPN has mitigated the worst effects of the MCO on the urban poor.
“The question is, what is next? Unless there are long-term sustainable measures for vulnerable households, we could see things going in the wrong direction if we are not careful enough.
“Compounded by the problems Malaysia faces including nutrition and stunted growth among some of its children, the MCO’s effects will exacerbate the situation if the proper steps are not taken,” he said at the launch.
On the whole, the report shows that urban low-income families face higher rates of unemployment, and experience greater challenges in healthcare and home-based learning.
The coronavirus pandemic has also worsened food insecurities, forcing many households to adopt less healthy diets, according to the Unicef-UNFPA report.
The same report found that households headed by women, such as widows or single mothers, are particularly vulnerable, with a 32 per cent unemployment rate compared to others.
Similarly, 57 per cent of female-headed low-income households have no access to social protection.
Source: https://www.malaymail.com/news/malaysia/2020/08/24/malaysias-urban-poor-prefer-microloans-for-business-to-cash-handouts-post-m/1896717