It’s employment that fights poverty, not free money

THE solution to eliminating poverty is to provide jobs not hand out free money.

Employment with a stable income that helps us earn a living is vital. There is dignity in working hard to provide a decent lifestyle for our loved ones.

Handouts, when received as temporary welfare, do help to cushion unforeseen misfortunes in life. However, when receiving handouts becomes routine, it will be addictive and will incentivise an unproductive entitlement mentality.

Poverty is a perennial problem in all societies. Providing aid is a short term solution. It cannot be sustained for long.

A long term sustainable solution is to create jobs. Decent employment does not only alleviate people from poverty but also contributes to the overall productivity of a society, in broad economic measures of gross domestic product per capita.

Therefore it’s heartening to read news about a multinational company that is expanding its operations in Penang with RM170mil.

The company’s existing facility, one of its largest research centres outside the United States, employs 1,000 people, with 70% in skilled and leading roles. The expansion will create another 250 new high-value jobs in the state.

The site of the new facility is about a five-minute drive from the area earmarked for the development of industrial Island A under the Penang South Islands (PSI) project.

Island A is meant to provide a strategic landbank near the airport and within the electric and electronic ecosystem to attract more such investments to create jobs.

Without jobs, there’s no sustainable solution to eradicating poverty. Without jobs, people who are not in poverty may fall into poverty.

Providing employment is not just about eliminating poverty but also about preventing poverty. Handouts should be temporary. Creating jobs should be the permanent solution.