Terengganu poverty reduction: Did Pas do better?

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Okay, folks, I will be off to Kuala Terengganu tomorrow with a friend to check out the by-election scene.  All the hotels are likely to be full, so I will take a tent along and just rough it out. It will be a homecoming of sorts, as I lived in Kuala Terengganu for two years, going to Standard One and Two at the Sultan Sulaiman Primary School. I must check out  our old house there to see if it is still standing….

In the meantime, this was was taken from a posting by Pelanuk on the Berita Malaysia email list. Did the Pas administration in Terengganu, without the benefit of oil royalties, actually do better than Umno in reducing poverty in the state?

> Staronline today reports Terengganu MB Ahmad Said as saying that “claims
> that the Terengganu Government is rich but its people are poor are all
> lies”, that “poverty rate had been reduced from 89.9% since independence to
> only 13%”.

The curious thing is that by the BN government’s own figures, the poverty rate in Terengganu:

1995 — 23.4%
1999 — 14.9%
2002 — 10.7%

In other words, in the *four* years under the BN, from 1995-1999, the poverty rate fell by 36%, or an average of about 9% per year, while in the *three years* under PAS, it fell by 28%, or an average of just over 9% per year.

In 2004, the poverty line was revised, and we were not given the poverty rate according to the old poverty line for comparison with the above. However, we now know that the new rates for Terengganu are:

2004 — 15.4%
2007 — 13.0% (as reported above, and this is for 2007 since that was the year in which the Household Income Survey was conducted).

So, in the *three years* of the return of BN rule, the poverty rate fell by only 16%, of just over 5% per year.

By a coincidence, we have a direct comparison of the first three years of PAS in Terengganu and the first three years of the return of BN to Terengganu — and it’s a most unflaterring comparison for the BN.

PAS was denied the petroleum royalties, were faced with the immediate aftermath of the financial crisis, and yet in their first three years, the poverty rate fell 28%. In contrast, the first three years of the return of BN, with all the petroleum royalties, and in relatively easier times, saw only a fall of 16%. And those first three years of the return of the BN saw plenty of money to throw on the Monsoon Cup, on the Crystal Mosque, and what not. Wow!

It’s even worse when we consider that the 2004 15% poverty rate meant that around 30,000 household in Terengganu were poor. Since even the poor don’t have zero income, let’s assume that they need an average of around RM500 a month or RM6,000 a year to come up to around RM1,000 a month household income. RM6,000 x 30,000 = RM180 million a year, i.e., less than the RM300 million spent on the Monsoon Cup. Now why couldn’t they have done with a less costly Monsoon Cup, say, RM120 million, and distributed the balance? Then there would be zero poverty in Terengganu. And since the poor and low income would have spent all that RM180 million, it would have been a stimulus to the local Terengganu economy at the same time — so it wouldn’t have been money given away, but a way to generate economic activity while wiping out poverty. And they could still have their Monsoon Cup!

So, who’s lying???

READ MORE:  Ahead of Semenyih by-election, a bombshell for Pas
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Joseph Tan
Joseph Tan
5 Mar 2014 2.50pm

I propose: i) that Kuala Terengganu airport shall have direct access to international flight especially to and from China, Hong Kong, Japan, Singapore, Taiwan, and Korea. ii) that Mandarin and English shall be the second and third compulsorily subject (or vice versa) for the State iia) greater promotion of Terengganu to these countries iib) enhance more home-stay. Use some of these oil moneys to improve their houses as well to train the locals to upgrade their catering in value chain on their tourist related business. iii) that a deep sea container port shall be built in the State with a… Read more »

Pelanuk
Pelanuk
17 Jan 2009 3.24pm

K, Now this is really becoming an exchange of diminishing returns! So this will be my last post on the matter. When you can’t make the argument, you resort to name calling, self-anointing yourself as “scientist” and me, “spin doctor”. Really, you are more like all those highly paid “analysts” from all those investment banks and what-not who led us into the global economic pit we are now in. But I’m glad the truth is out. Starting off with what seemed like an honest disagreement, you finally blurted out your pro-BN/UMNO stance. That’s good. First, do read: the 13% figure… Read more »

K
K
15 Jan 2009 10.46pm

Pelanuk, The difference between our approaches is due to the fact that you are trying to be a spin-doctor while I try to be a scientist. This debate has diverted and been muddied with you throwing in a lot of irrelevant facts and assumptions that the core issues have been forgotten. Let’s go back to the basic issue at hand. Based on the data provided, you claimed that PAS has done better than BN in poverty eradication. To “prove” this assertion, you compared BN’s 2004 to 2007 data (5% annual improvement) versus PAS’ 1999 to 2002 (9% annual improvement). Based… Read more »

Pelanuk
Pelanuk
15 Jan 2009 12.59pm

K, the correct saying is “a little knowledge is a dangerous thing”. But as Bob Marley sang, “who the cap fit, let him wear it”. 1. GDP/capita: yes, it is not a reflection of the poverty rate, BUT it is a reflection of income level at the mean. You ever seen a country with a lower GDP/capita having a higher mean income than one with a higher GDP/capita? Now, if a state with a lower GDP/capita has a lower poverty rate than one with a higher GDP/capita, the first thing one would look at is the income distribution. It suggests… Read more »

K
K
15 Jan 2009 12.48am

Pelanuk It is often said that half knowledge is more dangerous than no knowledge. The problem in Malaysia is that people tend to politicise every issue to align with and support their political beliefs. Ethics and integrity is thrown out. I am not taking a political stance but purely an objective and mathematical approach here. And based on that I hardly think Terengganu been a disaster in terms of poverty reduction and the data do not support your assertion. 1. GDP per capita : Terengganu indeed has one of the highest GDP/capita among the Malaysian states. But I think you… Read more »

Pelanuk
Pelanuk
14 Jan 2009 12.51pm

K — you want to play games with numbers, we can. But the fundamental fact of the matter is that T’ganu is a disaster zone, and that’s the context. 1. at the per capita gdp level, T’ganu is way above the country average. Yet it has amongst the highest poverty rates in the country — and except for the 5 years under PAS, that “achievement” is all UMNO’s, counting from the start of NEP in 1970. Now what does that tell you? 2. with the revision in the PLI in 2004, at the peninsula wide level, the poverty rate increased… Read more »

Phua Kai Lit
Phua Kai Lit
14 Jan 2009 9.43am

Ideological parties, when they are in
coalition with other political parties, tend to moderate
their positions.PAS won’t be an exception.

Ideological parties include socialist as well as
confessional (religious) parties.

K
K
13 Jan 2009 7.16pm

Dear Pelanuk If you want to talk specific, no problem. It is often said that some people manipulate stats to suit their purposes and I am afraid this is a classic case. Let’s analyse the data. Let’s look at the data of % of poverty rates. 1995 – 23.4% (BN) 1999 – 14.9% (BN) 2002 – 10.7% (PAS) 2004 – 15.4% (PAS) New PLI 2007 – 13.0% (BN) Based on the above, there was a steady reduction in the poverty at a rate of about 9% annually from 1995 to 2002. And then in 2004 there was a new PLI… Read more »

doinkers
doinkers
13 Jan 2009 5.35pm

I totally agree that we have to support PAS, to get real change.

p/s – but to hafizwm, i don’t believe that Farid will lose his senatorship. UMMO is merciful & forgiving party. If the man with 2x muhammad can have a cabinet position without standing for election, there’s still hope for Farid to get a senatorship for his good effort.

Anon
Anon
13 Jan 2009 5.16pm

That is beside the point. If we want change, then voting PAS is the only way. Send the Message to UMNO and BN.

hafizwm
hafizwm
13 Jan 2009 7.56am

cut the mess out by NOT voting farid! make him lose his senatorship forever

johanssm / khun Pana
johanssm / khun Pana
13 Jan 2009 6.42am

PAS do not have the money, as the oil royalty NEVER goes to PAS state gov.And yet PAS managed to do something.As PAS did abolish “cukai pintu”. Royalty money was controlled by another feds board which claims doing “developments” for the state. The monsoon drain cup ? or doing masjid kaca? is development? Those are white elephants. the comment left by ‘Kr” , i do not know what to say. As “K” did NOT gave what sort of tangible “development”. The money is nearly 1 billion per year. Now, the money is with umno and what they did with it?… Read more »

Angry Citizen
Angry Citizen
13 Jan 2009 3.46am

By not voting bn, we are saying NO to money politics, corruption, isa and never enough plundering. So vote for DAP, PKR & PAS for democratic and human rights!

sang kancil
sang kancil
13 Jan 2009 3.09am

Come what may, Barisan Rakyat must vote for PAS/PR.

Pelanuk
Pelanuk
13 Jan 2009 2.28am

K writes: “This is just a knee-jerk and cheapshot to take at BN’s record in Terengganu in view of the coming by-election.” Well, one knee-jerk reaction by the MB deserved a knee-jerk reaction, no? Surely you don’t dispute the figures? One way or another, UMNO from 2004-2007 does look bad, no? As for “First of all, the aid to Terengganu was not stopped during the PAS rule but distributed via a mechanism that the Federal govt set up. While PAS was complaining that this money is by-passing them, but in reality the money still flowed through for development projects. Only… Read more »

bangsa Cina Malaysia
bangsa Cina Malaysia
12 Jan 2009 11.33pm

OTK WHAT IS MCA STAND ON DR MAHATHIR DECLARATION MALAYSIA IS AN ISLAMIC STATE.????

OTK WHAT IS MCA STAND ON NAJIB SAYING MALAYSIA IS AN ISLAMIC STATE ???

OTK WHAT IS YOUR STAND ON DR.CHUA SOI LEK YOUR DEPUTY ????

I WILL VOTE PAS (PAKATAN RAKYAT ) ANYTIME HUDUD OR NO HUDUD.

K
K
12 Jan 2009 11.26pm

Anil I am sorry to say this but I think such article as this reflects poorly upon yourself. Perhaps you could have done some research and thinking before making such simplistic statement that do not befit someone as intelligent and articulate as you are. I wouldn’t have batted an eyelid had I heard this coming from some twenty-something you punks in a mamak stall. This is just a knee-jerk and cheapshot to take at BN’s record in Terengganu in view of the coming by-election. First of all, the aid to Terengganu was not stopped during the PAS rule but distributed… Read more »

Dalbinder Singh Gill
Dalbinder Singh Gill
12 Jan 2009 11.11pm

ANIL, ALL DA BEST IN YOUR TRIP, REMEMBER, TRY UR BEST TO SPREAD THE MESSAGE THAT MAKE SURE THE BARISAN CANDIDATE LOSES HIS DEPOSIT.

Dalbinder Singh Gill
Dalbinder Singh Gill
12 Jan 2009 11.11pm

I ONCE AGAIN MAKE IT CLEAR, SIMPLE AS THIS, THE BARISAN NASIONAL CANDIDATE MUST LOSE. LOSE HIS DEPOSIT ALSO. AS AFTER ALL, HIS DEPOSIT PAYMENT IS THE PEOPLES AMOUNT I GUESS, AND I BELIEVE THE PEOPLE SHOULD NOT FUND SUCH … IN SUCH AN ELECTION THOUGH HE IS STANDING AT HIS OWN WILL UNDER BN, THROW HIM OUT BUT WITHOUT HIS DEPOSIT.

Ganesh
Ganesh
12 Jan 2009 10.57pm

All these statistics prove nothing and does not give the real scenario. As we know, Malaysia has no minimum wage and a large proportion of people cannot make ends meet.

Poverty is a very relative thing and the poverty line definition is very important. It is now a well known fact that the poverty line should be RM2000 and not the ridiculous figure it is at.

Ask anyone, even in Terengganu, if you earn RM600, how to survive?

I hope the people in Terengganu realise that many of them are really living below the poverty line.

anak_perelih
12 Jan 2009 9.42pm

good analysis…
1 year after Terengganu under PAS fell, I went to KT in 2005 from Penang… and in the bus, there was this an elderly Indian Doctor from Penang who has a clinic in KT… from our conversation i told him about the oil royalty… in his opinion he said, the total annual oil royalty is less than the “cukai Pintu for residential” which PAs abolish… I told him.. that “cukai Pintu only amount up to RM30 million” and oil royalty at that year was RM800 million plus.. and he was shocked to know that….

mut
mut
12 Jan 2009 7.43pm

If leaders are content to live in spartan surroundings but with dignity, the country/state will always do better.

When the leaders climbed up the political ladder by buying their positions and/or votes, then we have the mess that we have now. Even then, we have some people who would defend corruption God knows to what end.

The shameless way with which UMNO withdrew the royalty payments is typical of the thickfaced politics this group practices. Tunku and Onn Jaafar would be turning in their graves right now to see what UMNO has turned into.