MALAYSIAN GOVT COMMITTED TO ACHIEVING ZERO HARDCORE POVERTY NEXT YEAR - PM

KUALA LUMPUR, Oct 24 (Bernama) -- Prime Minister Najib Tun Razak
Friday announced the Malaysian government's commitment to achieve the target of
zero hardcore poverty next year.

Tabling the 2010 Budget in the Lower House of Parliament, he said the
efforts included assisting the poor and vulnerable groups, eradicating urban
poverty and increasing home ownership.

Najib, who is also the finance minister, said the government would allocate
RM48 million (US$1=RM3.38) to implement urban poverty eradication programmes,
including welfare assistance and house rental payment.

"The urbanisation rate is increasing rapidly with 63 per cent of the
population residing in urban areas. The poverty rate in urban areas continues to
increase due to high cost of living, low income and housing problems," he said.

He said that to address urban poverty in a holistic manner, the role of the
Ministry of Federal Territories would be strengthened and expanded to include
urban poverty eradication nationwide, including those with monthly income below
RM3,000, and that the ministry would be known as the Ministry of Federal
Territories and Urban Wellbeing.


Najib said priority would be given to the low- and middle-income groups to
own or rent houses provided by the government.

"On Oct 10, 2009, I announced that more than 44,000 low-cost houses will be
sold at a price of between RM21,500 and RM35,000 per unit by Kuala Lumpur City
Hall and the National Housing Department (JPN) by end-2010. As an additional
measure, JPN will also provide 74,000 low-cost houses to be rented in 2010," he
said.

Najib also said that so far 148 private projects had been abandoned,
involving 49,913 units and 31,824 buyers.

Of these, 87 projects were yet to be rehabilitated, with 41 projects
involving low- and medium-cost houses, he added.

As such, he said, the government would consider extending appropriate
financial assistance to rehabilitate low- and medium-cost houses based on the
existing project list, for which an allocation of RM200 million would be
provided under the Ministry of Housing and Local Government.


Najib also said that the government would launch a scheme that enabled
Employees Provident Fund (EPF) contributors to utilise current and future
savings in Account 2.

"This will enable them to obtain higher financing to purchase higher value
or additional houses. This scheme aims to increase the purchasing power of EPF
contributors and is limited to the purchase of one house at any one time and
subject to conditions stipulated by EPF. The scheme will be launched in January
2010," he said.

Najib said the government would also implement various programmes to assist
the poor and vulnerable groups, adding that efforts would be taken to reduce the
poverty rate from 3.6 per cent in 2007 to 2.8 per cent in 2010.

He also said that about 50,000 hardcore poor households registered with
eKasih and 4,000 Orang Asli households would be given assistance, adding that
the measures to eradicate hardcore poverty included:

* distributing federal welfare assistance on the first day of each month,
with the welfare assistance for Peninsular Malaysia having begun on Sept 1 this
year and for Sabah and Sarawak commencing on Jan 1 next year.

* continuing the Skim Program Lonjakan Mega with an allocation of RM141
million, including in Batang Sadung and Batang Lupar, Sarawak; Pulau Banggi,
Sabah and Tanjung Gahai and Chemomoi, Pahang. This programme will alleviate
5,600 families from hardcore poverty.

-- BERNAMA