GOVERNMENT AID TO BOOST RURAL DEVELOPMENT AND ENTREPRENEURSHIP
Allocations for infrastructure, microcredit and welfare schemes to improve the lives of rural folk
RURAL development remains a priority for the government, with Rm10.93bil allocated for the Rural Development Ministry under Budget 2023, caretaker prime minister Datuk Seri Ismail Sabri Yaakob announced on Nov 13.
This amount is 4% higher than the previous year.
Apart from building infrastructure, the government wants to drive economic development by encouraging rural folks to become entrepreneurs.
“We want villagers to venture into various economic fields apart from traditional activities such as farming, rubber tapping, or smallscale fishing,” said Ismail Sabri.
“Rural entrepreneurs always have the opportunity and space to improve their existing achievements to a higher level because we have the expertise, potential and facilities that are constantly growing,” he said while officiating at the Rural Entrepreneurs Mini Carnival at Dataran Kerayong in Bera, Pahang.
Improving infrastructure
It is important to ensure that the socio-cultural development of people in the rural areas is in tandem with urban folks, as it will impact the country’s economic well-being, according to Prof Dr Mohd Fazli Sabri, dean of the Faculty of Human Ecology at Universiti Putra Malaysia (UPM).
“We cannot run away from the fact that there are still rural areas that are lagging in basic facilities such as roads, housing, electricity and water supply, as well as Internet access.
“We can see this, especially in the interior of Sabah and Sarawak where residents still face communication problems, no street lights, dilapidated and damaged bridges, and none existent or weak Internet coverage,” he said.
Prof Dr Mohd Fazli said the government should make efforts and take immediate action to ensure that the people’s needs are met since basic facilities are the fundamental right of every Malaysian.
To tackle the first job of improving rural infrastructure, the government has allocated Rm2.55bil in Budget 2023. Although the budget needs to be retabled after the GE15, it indicates what the government intends to do.
The main chunk of allocations are Rm1.5bil for rural roads, which are expected to benefit 110,000 people.
A further Rm54mil is slated for the “initial works” to replace 85 dilapidated and unsafe bridges.
Next is Rm472mil for the Rural Electricity Supply (BELB) Programme.
For the village street light project, RM123 million has been allocated for the installation of 6,800 units of lights as well as maintenance.
Other allocations under Budget 2023 are Rm381mil for the Rural Water Supply Programme (BALB) and alternative water supply project.
Encouraging rural business
Associate Prof Dr Azlizan Talib from the College of Law, Government and International Studies (COLGIS), Universiti Utara Malaysia, said the government should offer support programmes to help people diversify income sources in rural areas.
“Diversity in generating economic opportunities is necessary to overcome poverty and disparity.
“We are also aware of many potentials in rural areas that can be optimised for the benefit of the local population. These include resources for tourism, small and medium industries, and micro-entrepreneurship,” he said.
He added that the government should provide Orang Asli settlements with the necessary infrastructure facilities to make it easier for people there to find jobs.
This is in line with the Rural Development Policy, which is based on three main principles – being sustainable, inclusive and holistic.
Felda Youth Council president Muhammad Fadzli Hassan expressed hope that more people will participate in the initiatives that the government has implemented and venture into the digital economy where they can cross borders by using ecommerce platforms.
Malaysian Institute of Economic Research senior research fellow Dr Shankaran Nambiar said that rural communities have to be nurtured with proper guidance and training in entrepreneurship.
Under Budget 2023, Rm1.7bil will be allocated to Programe Semarak Niaga as microcredit to small businesses. These include:
> Rm950mil for micro loans by government-owned Bank Simpanan Nasional.
> Keluarga Malaysia Hawkers Scheme will get Rm350mil, of which Rm150mil is specially for bumiputras.
> Rm300mil for loans to smallscale entrepreneurs targeted at women and youths in the informal sector.
This will be done by Tekun Nasional, a government agency that aims to empower bumiputras to kick-start and expand their businesses.
> Rm200mil for Perbadanan Usahawan Nasional Berhad (PUNB) or National Entrepreneurs
Corporation, to boost bumiputra participation in the retail and commercial sector.
> Rm135mil for government agency Teraju to fund bumiputra entrepreneurs.
> Rm25mil for the Indian Community Entrepreneur Development Scheme (SPUMI).
> Rm100mil for the Malaysian Indian Transformation Unit (MITRA).
> Rm20mil for Graduate Entrepreneurs Programme (PUSH), for 1,000 graduates venturing into business.
To encourage more women entrepreneurs to expand their businesses and improve their marketing, Rm235mil has been allocated for various programmes run by government agencies and banks. These are Skim Semarak-nita BSN, Tekunita (Tekun), Dananita Mara and Biz Lady Bank Rakyat.
According to entrepreneur Juriah Abdullah Hashim who produces the Pahang delicacy sambal hitam, her sales increased from 600 to 1,000 bottles monthly after she promoted her product on Tiktok and Facebook.
Juriah, who runs the De Payrys Enterprise based in Jerantut, Pahang, hopes to get a small loan from Dananita Mara – Mara’s special business financing scheme for women. The money will be used to buy a machine to ramp up production.
Welfare payments
The rural population will also benefit from various welfare payments by the government under Budget 2023.
Some 450,000 households will receive monthly aid totalling Rm2.5bil from the Social Welfare Department. This is an increase from the Rm1.5bil allocated in 2022.
Bantuan Keluarga Malaysia cash aid will be increased to RM2,500 for families with five children and above. Families with four children and below will get between RM1,000 and RM2,000. Seniors and singles will receive between RM350 and RM600.
Budget 2023 will provide social protection amounting to Rm734mil for insurance or takaful schemes for the B40 or Bantuan Keluarga Malaysia recipients.
Loans up to RM50,000 will be made available for purchases of Amanah Saham Bumiputra Keluarga Malaysia for the B40 group (ASB40).
Up to now, the government has subsided RM40 for the electric bills of hardcore poor households, namely those earning below RM980 monthly.
Under Budget 2023, the qualifying level for this subsidy will be raised to RM1,169 to benefit more households.
Finally, to help rural folks, the fishermen’s cost of living allowance of RM250 a month will continue to be given out.
Apart from Budget 2023, it’s also worth noting that since 2019, the government’s Mysalam programme has approved claims related to critical illness and hospitalisation amounting to Rm734mil for 1.5 million B40 individuals.
The government believes that with allocations for infrastructure, microcredit to entrepreneurs and welfare payouts, the lives of rural people will be improved.