Outwardly rich, inwardly poor

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Sarawak top three richest state but has 7 out of 10 poorest districts in M’sia, says economic analyst

Associate Prof Dr Madeline Berma

KUCHING: Sarawak is among the top three richest states in Malaysia but ironically has seven of the 10 poorest districts in the country.

In stating this, economic analyst Associate Prof Dr Madeline Berma revealed that the economic growth of Sarawak is shaped by the performance of commodity-based sector such as agriculture, mining and quarrying.

“The sharp drop in commodity prices especially oil palm, pepper and rubber has affected the income of the rural populace badly, making poverty eradication in Sarawak not very effective,” she said.

She said Sarawak is still among the best achievers in Malaysia, standing in third position among the highest Gross Domestic Product (GDP) producers and fourth place in GDP per capita.

“Sarawak is among the top three richest states in Malaysia, contributing 9.7 per cent of Malaysia’s GDP – behind Selangor (22 per cent) and the Federal Territories (15.6 per cent) in the State Socio-economic Report (SSR) 2017.

“Sarawak’s GDP per capita stood at RM49,327 in 2017, only behind the top three of Kuala Lumpur (RM111,321), Labuan (RM65,949) and Penang (RM49,873). Sarawak’s economic growth is quite fast at 4.2 per cent compared to other states in Malaysia,” she added.

She admitted that the data on economy and social standing which covers GDP, Consumer Price Index, population, labour force, unemployment and income distribution showed that many areas in Sarawak are lying deep at the bottom of the statistics table.

“The figure from Department of Statistics, Malaysia shows that seven out of 10 poorest districts in Malaysia are in Sarawak,” she pointed out.

Madeline, who was once commissioned by the Ministry of Rural and Regional Development to conduct nationwide research for the National Rural Development Policy, said that sadly, Pakan District topped the nation’s poverty list.

“Pakan is the poorest district in the country with income per capita of RM2,760. Other districts in the list from Sarawak are Lubok Antu, Song, Kanowit, Selangau, Simunjan and Daro,” she said.

Madeline, therefore, suggested that Sarawak government must develop new source of economic growth to create more job opportunities besides diversifying the source of income for its rural populace.

With government support and correct marketing approach, the abundance of unique longhouses and traditional agriculture activities at naturally attractive villages will definitely draw visitors, she added.

Madeline was asked to comment on the revelation by Rural and Regional Development Minister Datuk Seri Rina Harun during an event on Sunday that Pakan was the poorest district in Malaysia.

The minister had said that the poor districts, totalling 28, are to be given special attention for the implementation of socio-economic development programmes.

Rina said these included the development of infrastructure, improving their income, education and so on to enable the residents in the area to come out of the clutches of poverty.

She said among the districts identified were Tumpat in Kelantan, Yan in Kedah besides several others in Sabah and Sarawak, adding her ministry would emphasise on cooperating with other relevant agencies and departments to raise the socio-economic standard of the residents.