POLICY 4: 

COMPREHENSIVE LEVERAGE THROUGH FINANCIAL SUPPORT

• Policy recommendations to increase the availability of food in households

In order to reduce the incidence of household food insecurity, some policy responses that can be considered in developing a comprehensive food security strategy framework in terms of food availability, accessibility, utilisation, and stability are as follows:

Availability – refers to the physical existence of food.

At the national level, food availability is a combination of domestic food production, food imports and exports, and domestic food stocks. On a household level, food could be from own production or bought from the local markets.

1. The food production sector must be developed and transformed into a modern, competitive and commercially vibrant sector. This can be achieved by emulating the industrial crop production model to the food sector where large plantations which are private sector-led co-exist with the smallholder production units. To stimulate the investment, incentives to the private sector must be formulated in a way that the return on investment in food production is at par with industrial crops, such as oil palm investment. This can be encouraged through appropriate domestic resource mobilisation initiatives and fiscal policies;

2. Develop an agro-entrepreneurship incubation programme. As in UPM, participants are selected mainly from newly graduated degree holders in agriculture and related disciplines who have an inclination towards entrepreneurship. They are incubated where at the end of the incubation period; successful participants would have their own farms;

3. Implement a land-use policy to enhance food security through the setting aside of adequate areas of agricultural lands and aquatic and other natural resources for food production and other sources of nutrition;

4. Implement special programmes that will enhance productivity with a view to reducing costs and increasing and stabilizing production and incomes of the poor. Such programmes could include improving the access of small-scale producers to inputs, credit and other essential services as well as to markets. The role of agricultural cooperatives and effective extension services in increasing production and producer incomes should be stressed;

5. Rapid urbanisation is pulling poverty and food insecurity into cities, given the fact that urban dwellers are actually net food buyers and depend largely on cash income to access food. Promoting urban farming as well as household and community gardens can reduce urban household food expenditure.

6. It used to be that agriculture was the provider of food, job and income to mankind. However, that paradigm no longer holds under the current context of climate change, environmental degradation, resource depletion, and the concern for food security worldwide. The new theme for agriculture goes beyond its basic functions, but to enhance resource conservation, environment, preserve farm communities and alleviate poverty. The multi-functionality of agriculture raises its worth more than just economics, and it must be recognised in terms of its environmental services;

7. Intensify research in food production, handling and storage and prevention of food losses, crop and genetic diversity, and improved food processing, preservation and marketing. Research should be done on household handling of food and intrafamily food distribution to assure adequate food availability and to protect the nutritional value of food and prevent food losses and wastage; and

8. Intensify research on cost-effective indicators to measure household food security problems and to measure the progress of appropriate programmes in solving the food insecurity problems. 

(B) Bringing educational gaps through fairer scholarships

Scholarships help to lessen the impact of rising tuition costs.

Fees at local private universities vary depending on the course. Foreign private universities such as Monash University and Nottingham University generally charge higher tuition fees. At the University of Malaya, registration fees vary between art, science and law programmes. For example, registration fees cost RM910 for all programmes except dentistry (RM970) and built-environment (RM1,050).

The total cost of tuition fees for non-science courses such as Islamic Studies, Malay Studies, Language and Linguistic, Economics and Administration, Education, Business and Accounting, Arts and Social Sciences, Law, and Cultural Studies are in the range of RM7,500 to RM9,800. Science programmes like Dentistry, Medicine, Architecture, Engineering, Computer Science and Information Technology, and Sports, cost between RM8,000 and RM15,000 for the three to four years of studies.

A Cambridge GCE A-Levels, UK pre-university course could cost between RM19,000 and RM38,000, while an International Baccalaureate Diploma Programme for 24 months would cost RM115,000. Tuition fees and living expenses for a three-year engineering degree would set a student back about RM140,000. The tuition fee for medicine could be as high as RM450,000 — not inclusive of living expenses. And these fees are slowly inching higher.

Scholarships help students have more time to focus on their studies. 

Research shows that work can take up more than 15 hours per week and becomes an impediment to academic success. For many students, the stresses of working make it difficult for them to graduate on time, or graduate with the high grades they have the potential to achieve. For other students, the work/study life is unsustainable, and they discontinue their studies altogether. Scholarships decrease the number and amount of loans students need to take to complete higher education. Debt levels differ considerably depending on the type of institution attended. Those who attended private colleges and universities borrowed most with an average of RM53,750 and RM31,324 respectively. At public universities, the average debt was RM23,735; about the same as the overall median.

Scholarships decrease the number and amount of loans students need to take to complete higher education.

Debt levels differ considerably depending on the type of institution attended. Those who attended private colleges and universities borrowed most with an average of RM53,750 and RM31,324 respectively. At public universities, the average debt was RM23,735; about the same as the overall median.

• Existing policies for financial aid or scholarships

There are generally two kinds of scholarships. One solely covers tuition fees, and the other covers tuition fees and other expenses like accommodation and even allowance to the scholarship holders. Some scholarships offered are bonded scholarships which require the scholarship holder to work for the scholarship provider for a period of time as specified in the scholarship agreement in return for the scholarship. Many scholarships require scholarship holders to maintain a minimum CGPA. If one’s CGPA falls under, say, 3.3, one will no longer be entitled to the scholarship and must seek alternative financing.

• Existing Student Loan Options

PTPTN

This loan is aimed at aiding Malaysian students financially by offering them affordable financing at a low rate of 1%. PTPTN is repayable after a six months grace period upon graduation. The maximum amount one can borrow with a PTPTN loan depends on the income status of the loan applicant’s family. Students or students with parents who are BR1M receivers are entitled to the maximum amount of the loan; students with a household income no more than RM8,000 are entitled to 75% of the maximum amount, while students with a household income exceeding RM8,000 are entitled to just 50% of the maximum amount.

Pros:

1. No barriers for applicants, hence most applicants are eligible for it, making PTPTN a relatively democratic loan.

2. Can be converted to a scholarship if one obtains a Bachelor’s Degree with first-class honours.

3. The interest rate (Ujrah rate) for PTPTN ranges from only 1% – 3%.

Cons:

1. Must be paid back after six months upon graduation based on the amount stated on the contract.

2. Those who default their loans will be barred from leaving Malaysia and their passports will be suspended.

3. Their credit records will also be tainted, which destroys their credit reputation and it will be harder for them to borrow in the future.

(C) Tackling digital divide

In Malaysia, many youths living in poverty come from refugee or B40 (Bottom-40 income bracket) households. The incidence of absolute poverty stood at 5.6% as of 2019. 75% of the Malaysian population lives in urban areas, and 30% of them are classified as ‘urban poor.’

Youth, especially from vulnerable communities, face two main issues: a lack of digital infrastructure, and home environments that are not conducive to learning. The digital divide includes a lack of access to devices (smartphones and/or laptops) with stable internet to support online learning. 

• Existing solutions to overcome the digital divide

In April 2020, the Government started the Program TV Pendidikan or Kelas@rumah. These programmes were started as an alternative for students who couldn’t access the internet. Household TV penetration rate is higher (approximately 92%) compared to internet penetration (approximately 83%), but some households still had neither.

The Ministry of Education also unveiled a digital learning platform, DELIMa (Digital Education Learning Initiative Malaysia) incorporating material from some of the biggest ed-tech brands, including Google Classroom, Microsoft 365 and Apple Teacher Learning Centre.

• Why it is insufficient

There is a lack of infrastructure to support online learning. While most youths from urban-poor households had access to some sort of internet service (mostly mobile broadband), online learning was often interrupted due to poor network speed, disrupting learning. During this pandemic, many also had to share their devices with other family members. For instance, if the parents were working and had work meetings to be taken using a laptop, the children were unable to attend classes.

Even though Malaysia outperforms in terms of internet users and mobile broadband penetration access but it falls behind in terms of fixed broadband penetration. There are some areas that do not get better quality of accessibility in comparison to other areas.

States that have a higher median household income above the national average are more likely to have fixed and mobile subscriptions that are higher above the national average. Kuala Lumpur has the highest percentage of median household income alongside the highest percentage in fixed and mobile broadband. Kelantan has the least percentage of accessibility with the lowest median household income. It may suggest that governments and private companies are prioritising accessibility towards areas of higher incomes to gain profits.

• What can be done to improve

The government has to see through the promises made in the 12th Malaysia plan to ensure internet connectivity for all. The Jalinan Digital Negara (Jendela) plan was formulated under the 12th Malaysia Plan (2021-2025). The plan would lay the foundation for comprehensive and high-quality broadband coverage as well as prepare the country for the transition to 5G technology.

In continuing the effort set forth, Measat, Malaysia's premier satellite operator, to support Malaysia's national broadband aspirations, via its CONNECTmeNOW high-speed satellite broadband service is providing Internet access to communities in rural and remote areas, in locations that are not covered by 4G or fibre connectivity.

In its first phase (2020-2022), the Jendela plan has set a national target realisation of 96.9 per cent mobile coverage. To date, Measat has installed more than 2,000 CONNECTme NOW sites, which includes 1,183 sites in Sarawak and 243 in Sabah.

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REFERENCES

(1) Ismail, S., Sidek, S., Mohd Abu Bakar, W. A., & Abdul Rahman, R. (2019). Prevalence and factors affecting food insecurity among university students in Pahang, Malaysia. https://nutriweb.org.my/mjn/publication/25-1/25-1.pdf#page=63

(2) Kenayathulla, H. B., & Tengyue, Z. (2017, Sep 6). STUDENT LOANS IN MALAYSIA AND CHINA: EQUITY, EFFICIENCY AND ADEQUACY. http://ajba.um.edu.my/index.php/MOJEM/article/view/6075

(3) Shamsudin, P. D. D. M. N. (2019, SEPTEMBER 9). Food Insecurity: Coping Strategies and Policy Responds. https://upm.edu.my/article/food_insecurity_coping_strategies_and_policy_responds-53445

(4) The Straits Times. (2020, Jan 20). Malaysia govt starts free meal programme for poor with 4,000 students. https://www.straitstimes.com/asia/se-asia/malaysia-govt-starts-free-meal-programme-for-poor-with-4000-students

(5) #TECH: Measat to provide Internet access to areas not covered by 4G or fibre connectivity https://www.nst.com.my/lifestyle/bots/2021/09/725836/tech-measat-provide-internet-access-areas-not-covered-4g-or-fibre

(6) When learning goes digital: Reflections on urban youth living in poverty in Malaysia https://www.my.undp.org/content/malaysia/en/home/blog/2021/when-learning-goes-digital--reflections-on-urban-youth-living-in.html

(7) STUDENT FINANCIAL AID https://www.flymalaysia.org/student-financial-aid/

(8) How much would it cost to pursue higher education in Malaysia? https://www.nst.com.my/news/2017/03/223461/how-much-would-it-cost-pursue-higher-education-malaysia

(9) The price for tertiary education https://themalaysianreserve.com/2017/10/02/price-tertiary-education/

(10) The Impact Of A Scholarship https://www.uhfoundation.org/scholarships/impact

(11) Debt Composition and Attitude towards Education Loan among Malaysian Graduates https://www.sciencedirect.com/science/article/pii/S1877042812004983