Today, 17th October, is the International Day for the Eradication of Poverty. This resolution was adopted on 22 December 1992 at the UN General Assembly. According to UN predictions, by the end of 2022, 8.4% of the world’s population (670 million people) were expected to be living in extreme poverty, and as many as 575 million people could still be trapped in extreme poverty by 2030. This may not take into account the dire situation in Gaza, Lebanon, and the Middle East. Just a week ago, P. Gunasegaram wrote a thought-provoking article titled “When 1% of the Population Owns 50% of the Wealth.” All of this points to an unequal world that desperately needs fairness. Poverty is one of the greatest tragedies against equality and social justice. Is poverty natural or conditioned? In this age of AI, humanity has yet to resolve one of its oldest evils—poverty
Since 2021, every 17 October, Jawatankuasa Marhaen, a coalition of grassroots communities in Malaysia, has used this day to highlight and voice the problems faced by the poor. We call 17 October Hari Marhaen—a day for the oppressed. On this important date, dedicated to eradicating poverty, I want to voice some of the issues faced by the marhaen in relation to the Madani Government.
In Malaysia, Prime Minister Anwar Ibrahim stated that he would eradicate hardcore poverty by the end of 2023. This is a tall order, one that even many first-world countries struggle to solve. Now, as we approach the end of 2024, one wonders if there are any statistics on this? Hardcore poverty surely exists in every town and rural area in the country, with a higher prevalence in the East Coast and East Malaysia.
Anwar – The Voice of the Marhaen?
Anwar’s rhetoric and oratory skills have always been pro-marhaen and pro-poor. He is the Prime Minister who has spoken out against the “Maha Kaya” (super rich) more than any of his predecessors. His government, called the Madani Government, emphasizes the need for a caring society and government.
Upon taking power in late 2022, one of Anwar’s first actions was to call up tycoon Tan Sri Syed Mokhtar Al-Bukhary and have him allocate RM10 million to help poor paddy farmers.
More recently, he significantly increased civil servants’ wages, stating that no government worker should earn less than RM2,000. He also urged the private sector to follow suit, praising Khazanah when it set its minimum wage at RM3,000. Anwar has declined his own salary and has been openly critical of developers who resist integrating lower-cost apartments into their projects.
Anwar has emphasized that he is not interested in building the tallest or biggest structures but rather in doing what is necessary for the rakyat and uplifting the poor.
At the 78th Annual General Meeting of the Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM), Anwar stated he would not implement the GST, as it would tax all people, including the poor, and he doesn’t want to burden them with higher taxes unless their wages increase.
When Anwar implemented subsidy rationalization, the Socialist Party of Malaysia (PSM) welcomed it, as subsidies should primarily help the poor, not the wealthy. Recently, Anwar also mentioned that education subsidies should not benefit the rich. All of this casts Anwar as a figure resembling the Malaysian Bernie Sanders.
Who Burdens the Pension Scheme?
Now, let me bring up the issues faced by the communities in Gabungan Marhaen and assess whether the Madani Government has kept its promises.
Some say Anwar performs well on stage but not on the ground. Is Anwar’s rhetoric just that—empty words? Let’s explore the flip side of these arguments.
Two days ago, on 15 October, more than 200 people gathered in a flooded Kuala Lumpur outside Parliament, carrying umbrellas and urging the government to establish a pension scheme for those above 65 years old.
The simple fact is that we are an aging society. Many have little to no money left in their EPF savings, and much of the aging population in Malaysia are informal workers who are not entitled to EPF benefits. It would only cost 3% of the total budget for the Madani Government to introduce a pension scheme for those over 65.
On the other hand, our national pension scheme is already overburdened and appears unsustainable. Who benefits the most from these pensions—the marhaen or the politicians? Large pensions are awarded to politicians who are entitled to them after just five years of service. Will the Madani PM have the will to reform these perks? If the argument is that the rich are not entitled to cheap petrol and diesel, why do pensions go to a select group of individuals?
Essential Workers and Privatization
One of Malaysia’s essential worker groups includes cleaners and security guards in government hospitals and schools. These former permanent government workers are now insecure contract workers, employed by contractors paid by the government.
They are the victims of the 1996 privatization project under Mahathir, and today, one reason the government is reluctant to reinstate them as permanent employees is due to the strain this would place on the pension schemes. Here lies the contradiction—where will the Madani Government lean? Toward the marhaen or their crony contractors?
Private and Government Healthcare
When we in the PSM supported the move to remove petrol subsidies for the rich, we expected the government to use the savings to increase the health budget. But what we got was an announcement that the government intends to open private wings in government hospitals. This will inevitably compromise the quality time and care provided to the marhaen. Yet the Madani Government and its masters seem more inclined to build private wings in government hospitals, diverting resources for higher-paying patients.
Why doesn’t the Madani Government push for public wings in private hospitals instead? Institutions like IJN, Subang Jaya Medical Centre, Prince Court, Gleneagles, and KPJ are all GLC-run hospitals where the government holds major shares. Isn’t it ironic for the Madani Government to erode public healthcare while still profiting from its GLC-run private hospitals?
Zero Cattle Policy and Food Security
Speaking of GLCs, another GLC, Sime Darby, recently adopted a zero cattle policy, and the victims are many cattle farmers, most of whom are plantation workers and their families. This policy will uproot the livelihoods of those who have been rearing cattle for more than 60 years. For decades, cattle farming and plantations have coexisted harmoniously, providing mutual benefits to each other.
In the 1970s, Tun Razak, the second Prime Minister, encouraged plantation workers to rear cattle on plantation land to sustain their income. But today, Sime Darby, another GLC, is trying to evict these hardworking, independent farmers.
If the zero cattle policy succeeds, it will lead to an increase in the need to import more milk and meat, which will drive up imports, raise the prices of goods, and cause local farms to lose their income. This, in turn, will severely impact our food security.
Focusing on the Prime Minister’s constituency in Tambun, we see that hardworking farmers, who have been farming for generations and producing vast amounts of food crops, are being evicted, bullied, and displaced by the Perak State Madani Government. When the farmers sought help from Anwar’s aides, they were told that the PM has no authority over state affairs. Their land is being seized by wealthy property owners, and fertile lands are being converted for industrial and mining purposes. The Madani state government is suing the activists and farmers, while the MP, who is the Prime Minister, has turned a blind eye to the plight of the marhaen.
Another marhaen community facing a dire situation is the Orang Asli, who continue to face challenges from timber and Musang King plantations, which have been given licenses by the government. The Madani Government has consistently ignored the plight of these communities, prioritizing profit over people.
Plantation Workers’ Long-Awaited Legal Protection
Today, there will be another public hearing regarding plans to develop the remaining 26 acres where Ladang Bukit Jalil, one of the last two remaining estates in the Klang Valley, is located. Plantation workers, who have toiled for three or four generations, now find themselves without homes. The Plantation Workers Support Committee (JSML) is working hard to push the government to enact legislation to protect long-term plantation workers and ensure they can secure at least low-cost housing. However, this legislation is not on the government’s agenda or priority list. In the recent by-election in KKB, houses were promised for workers from five estates, but plantation workers cannot rely on by-elections for housing to be built.
Memorandums and draft laws have been submitted to the government without much response.
Ehailers Feel Cheated?
In July last year, the PM met with a large number of ehailers and gig workers. They spoke passionately about how little they are paid. The PM was angered and announced that he would talk to the ehailing companies, with dates set for discussions. However, today, most ehailing drivers and platform workers say they are worse off than they were a year ago.
Anwar’s rhetoric at the time excited them, but today they remain poorly paid.
Minimum and Ceiling Wages
Low-income workers look to the PM and the Madani Government to raise their earnings. The PM has already stated that the private sector should follow the public sector’s lead in providing a minimum wage of RM2,000. However, as Mydin boss Amir pointed out, he urged the PM to force employers to pay higher minimum wages, as they are unlikely to do so voluntarily.
The Auditor General’s report has noted that the wages of GLC executives need to be reviewed, and there should be a salary cap. Today, GLC CEOs earn between RM100k and RM900k in monthly salaries—higher than the PM’s own salary. These excessive salaries are allowed, while raising the minimum wage remains a difficult task.
Additionally, the government has made it easier for the private sector to bring in large numbers of cheap foreign labor. This has frustrated the local workforce, though it is not the fault of migrant workers. These policy decisions benefit employers, and the wages of the marhaen are suppressed by various forces. Will the Madani Government stand by the marhaen?
As we mark the International Day for the Eradication of Poverty today, will the PM live up to his pro-marhaen stance, or will this hope be betrayed once again?
Hoping for a budget that benefits the many, not the few.
S.Arutchelvan
Deputy Chairperson
Parti Sosialis Malaysia
17-10-2024
International day to eradicate Poverty