BE1401 Poverty in Brunei Introduction What is poverty

BE-1401 Poverty in Brunei

Introduction • What is poverty? • Is there poverty in Brunei? – Yes. Absolute or relative? • Is there a poverty threshold? – No official threshold but many studies had been done to calculate it • Who is poor? – Different categories of poor

Problems of Poverty • • Health Mental Social Issues Effects on the economy

Common Causes of Poverty • • Lack of education, skills and knowledge Unemployment Large dependency ratio in a household ‘New Poor’?

Social Security System in Brunei • Old Age Pensions • Monthly Financial Assistance from various agencies • Physically Challenged Allowance • TAP

The system of Zakat in Brunei • Aim: To bring the poor out of poverty by raising their standard of living • The administration and organization of zakat is handled by the Brunei Islamic Council (MUIB) • Zakat law first introduced on 1 st january 1969 • MUIB has appointed the Zakat Distribution Committee to steer policies and running of zakat collection and redistribution in Brunei.

Recipients of zakat in Brunei • • • Poor Needy or fakir Amils or tithe collectors Muallaf or converts Debtors or Al-gharimin Ibnus Sabil; travellers or migrants

Problems • Increasing number of zakat recipients year by year • Identification of eligible recipients; selection criteria • Payment of zakat by individuals on their wealth • Coming up with strategies to get the recipients out of poverty

Causes of poverty in Brunei • Per capita net income • Percentage of non-working adults in the household (HH) • High no of dependents in the HH • Overcrowding in the HH • No/Lack of Education

Challenges • There is an immediate need of calculating the poverty threshold for Brunei • Policies and Strategies need to be carefully developed and implemented in order for the poverty eradication strategy to be successful • Give training to develop skills • Educate the poor and the public • Networking/Sharing information between agencies when identifying prospective recipients