SME DEVELOPMENT POVERTY REDUCTION APPROACH ASEAN3 Village Leader

SME DEVELOPMENT: POVERTY REDUCTION APPROACH ASEAN+3 Village Leader Exchange Programme (VLEP) Mr. Abu Bakar Md Nor Mr. Md Nazori Hashim Mr. Adam Mohd Mr. Rizrikin Annuar

Indicators of Rural Malaysia. . Average household income has significantly increased from 1970 s, whilst the income disparity between urban and rural population now stands at approx 1. 86: 1 An area of less than 10, 000 residents outside of local authority zones Thousands How does Malaysia define its rural area? 7. 0 6. 0 5. 0 Malaysia’s rural area comprises of 70% of its total size (231, 180 km 2 / 23 mil ha) including agriculture areas, forests, villages, coastal areas and islands Source: DOS, JPBD RM 5, 742 (USD 1, 794) Urban Rural Malaysia RM 5, 000 (USD 1, 563) 4. 0 3. 0 RM 3, 080 (USD 963) 2. 0 1. 0 0. 0 1970 1980 1999 2002 2004 2007 2009 2012 Year

Age demographic shows the biggest group is between 15 – 39 years old, similar between rural and urban population Percentage of rural population has been decreasing since 1970, from 71. 6% to only 26. 3% of Malaysia’s total population 8. 00 100% 7. 00 28. 4 80% 34. 2 6. 00 51. 0 70% 61. 9 60% 73. 7 50% 40% 5. 00 (million) 90% 4. 00 3. 00 71. 6 30% 65. 8 2. 00 49. 0 38. 1 20% 1. 00 26. 3 10% 0 - 14 0% 1970 1980 Urban (%) Source: DOS 1991 2000 Rural (%) 2014 Urban 15 - 39 Rural 40 - 64 65 and above Age

Malaysia Poverty Line Index for a 5 member household is separated into 3 categories according to territories USD RM Peninsula r 259 1, 010 163 635 Urban 263 1, 025 159 620 Rural 247 963 166 647 341 1, 329 206 803 Urban 338 1, 318 197 768 Rural 350 1, 365 222 865 288 1, 123 188 733 300 1, 170 197 768 Sabah Sarawak Urban Rural 272 1, 060 Exchange Rate: USD 1 = RM 3. 90 Source: DOS, EPU 70 Hardcore Poverty 178 694 60 58. 6 Poor (%) 50 Percentage (%) Territory Poverty Since 1970 s, Malaysia’s incidence of poverty at rural area has been on the decline, wherein the focus has now shifted to pockets of poverty 45. 8 Hardcore Poor (%) 40 30 21. 8 20 14. 8 10 0 5. 2 0 11. 9 8. 4 0. 6000000 3. 4 1. 8 00000001 7. 7 3. 6 0 2. 9 1970 1980 1999 2004 2008 2009 2012 Year 4

NATIONAL BLUE OCEAN STRATEGY • Focus on rapidly delivery high impact on both capital and people economies • A unique and dynamic national strategy platform which bring together ministry, agencies, all level of government and the private sector on voluntary basic to develop initiatives are high impact, low cost and rapidly executed

NURTURING SMALL INDUSTRIES AND RURAL ENTREPRENEURS IN PRACTICES

OUR FOCUS SME 1995 to 2009 Source: Annabelle Ong (2015)

STRATEGIC THRUSTS Knowledge Development - Enhancing the knowledge base in various subjects, hence functioning as a foundation for the competence of youth Attitudinal Development - Inculcating of moral values and the development of a positive and creative attitude Vocational and Entrepreneurial Development -Equip youth with the state-of-art technical knowledge and vocational skills. -Involving them in entrepreneurial activities in line with the demands of nationbuilding Healthy Lifestyle - Engage in social and voluntary activities that lead to a healthy, active and dynamic lifestyle to nurture them into responsible leaders of high caliber. . Facilities for Social Interaction - Upgrade relevant facilities that contribute towards promoting healthy interactions and social activities amongst youth and communities Partnership in Development - To utilize partnership and co-operation amongst governmental agencies, NGOs and the private sector for the benefit of youth development International Relations and Networking - To encourage youth to further promote closer ties and international networking with international communities

PROGRAM SME Knowledge Development Healthy Lifestyle PRO GRA Attitudinal Development M Vocational and Entrepreneurial Development Facilities for Social Interaction Partnership in Development International Relations and Networking

PROGRAMS AND INITIATIVES FOR SME • • Business Advisory Services @ORC Branding & Packaging Mobile Gallery Access to Financing Human Capital Development Infrastructure Innovation & Technology Adoption Market Access

CHALLENGES IN FUTURE DEVELOPMENT q Less Job Opportunity because to many postgraduate (urban & rural) q Land Owner (Rural Community) is minority q Foreign Migration

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