PR's AES will ensure all households have a minimum monthly income of RM770 benefits all, including the Indian poor

I wish all Hindus in Penang and Malaysia a Happy Deepavali to celebrate the Festival of the Light. To commemorate this festivity, the Penang state government has decided to shine the light on the lives of the poor by becoming the first state in Malaysia to wipe out poverty by 2013.

Pakatan Rakyat’s Agenda Ekonomi Saksama(AES) or Equitable Economic Agenda that wipes out poverty in Penang by 2013 will ensure all households have a minimum monthly income of RM 770 benefits all, including the Indian poor. Penang became the first state in Malaysia to wipe out hard-core poverty(households with monthly income of less than RNM400) in 2009 and had intended to wipe out poverty by 2015.

Poverty was defined by the Federal government as households receiving income of less than RM720 per month. However this RM720 poverty line is too low and outdated. This is why the Penang state government has chosen the latest survey done by a local university of RM 763 monthly income as the poverty line indicator in Peninsular Malaysia.

To wipe out poverty, all families must receive a minimum monthly income above RM763 monthly. For this reason, the Penang state government has fixed RM770 as the minimum monthly income for all families in Penang. Penang’s targeted zero poverty by 2015 had been brought forward by 2 years to 2013 due to the good financial performance of the state administration in 2011.

The 2011 Auditor-General’s Report had confirmed that Penang had reduced our debts by 95% and recorded the highest budget surplus ever in Penang’s history of RM138 million, a 312% increase from 2010’s budget surplus of RM33 million. Penang had managed to record a budget surplus every year since 2008 despite projecting a budget deficit every year due to CAT governance of competency, accountability and transparency.

CAT governance focuses on cutting down cost and maximising revenues without sacrificing quality through open competitive tenders, compliance with rule of law, choosing the competent or right person for the right job as well as adopting rigorous auditing and internal control mechanisms. As a result of CAT governance, the Penang state government is able to achieve our target of wiping out poverty by ensuring a minimum monthly household income of RM 770.

In other words, any families receiving less than RM770 per month after all other forms of aid, will be “topped-up” by the Penang state government to RM770 per month. In other words if a family receives only RM500 after all financial assistance, this family will receive RM 270 monthly to top up to RM 770 per month. This exercise to begin by 1.1.2013 will see the end of poverty in Penang by the end of 2013. At least RM20 million has been allocated for this historic poverty eradication initiative.

BN also has its own AES-Automated Enforcement System. BN’s AES that punishes the rakyat solely to enrich private companies as compare to PR Penang’s Agenda Ekonomi Saksama(AES) or Equitable Economic Agenda that strives to wipe out poverty, highlights the different policy approach towards economic development.

On the one hand BN installs 1Malaysia cameras without any open competitive tender that benefits certain crony companies through commissions for every traffic summons issued, whilst PR Penang’s AES will allow Penang to be the first state in Malaysia to be free from poverty-in-record by 2013 by benefiting 2,000 poor families, including the Indian poor.