Gov’t to adopt NDI concept as new basis for aid distribution

PUTRAJAYA: The government will shift to a more meaningful measurement of poverty based on the concept of Net Disposable Income (NDI) as the basis for identifying target groups for aid distribution, said Datuk Seri Anwar Ibrahim.

The Prime Minister said the NDI concept would reduce exclusion errors and be more equitable.

"NDI will take into account the Basic Minimum Living Expenditure (PAKW), which refers to the cost of living necessary for a decent living, including expenses for food, clothing, accommodation, utilities and transportation, and will vary by location and household demographics," he said during his speech at the 2024 National Symposium: Eradicating Poverty here today.

The symposium, themed "Bersama, Berdaya dan Mampan" (Together, Empowered and Sustainable), outlines five initiatives: enhancing measurement, reforming poverty eradication funds, unifying data, changing attitudes and mindsets, and strengthening efforts to end poverty.

Anwar, who is also the Finance Minister, gave an assurance that the Cabinet would seriously consider the findings and input gathered at the symposium.

ANWAR-NDI 2 PUTRAJAYA

The Prime Minister said he wants Economy Minister Rafizi Ramli to compile and summarise all ideas and perspectives shared by the panel and participants attending the symposium.

"I can assure you that if this (symposium's summary) is provided, the Cabinet will take these views into serious consideration.

"If possible by Wednesday, Rafizi can prepare an initial note so that we can take serious action and make this a priority in what is called fiqh aulawiyat (the jurisprudence of priorities)," he said.

As for the second initiative, Reforming Poverty Eradication Funds, Anwar said the government is committed to continuing fiscal reforms as part of efforts to restructure the economy towards sustainability.

He said this includes overhauling the subsidy structure to be more targeted, including social assistance and poverty eradication programmes.

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