Putrajaya to adopt district-based targeted approach to cut reliance on cash handouts, Rafizi says

KOTA KINABALU, Dec 19 — The federal government will adopt district-based strategies to address extreme poverty in Malaysia’s poorest areas under the 13th Malaysia Plan (13MP), Economy Minister Rafizi Ramli said today.

The federal minister said that addressing hardcore poverty is a key focus, and the federal government aims to stimulate income-generating activities rather than relying solely on short-term solutions such as cash transfers.

“The incidence of extreme poverty in Sabah is significantly higher compared to other states,” Rafizi said, noting that integrated interventions like cash assistance, zakat, and welfare programmes have proven successful in lifting families above the poverty line.

He added that the new approach, led by the Implementation Coordination Unit, will be an ongoing effort aimed at bringing more families out of extreme poverty and ensuring long-term stability.

He said the 13MP will prioritise sustainable economic activities in poverty-stricken areas, as simply providing assistance is insufficient without creating lasting opportunities.

Unlike previous plans, which focused on infrastructure projects to generate economic spillovers, this approach will directly target the country’s 10 poorest districts with strategies designed to stimulate income generation.

“This district-based approach will help reduce dependence on monthly cash transfers from government agencies and ensure families can achieve long-term stability,” Rafizi said.

Sabah, despite its vast natural resources and size, remains one of Malaysia’s poorest states, with low income per capita and a significant portion of its population living in poverty.

Eight out of the country’s 10 poorest districts are located in Sabah.