PUTRAJAYA: Net disposable income (NDI) will now be used as the basis to identify target groups for assistance in the government's efforts to eliminate poverty.
Prime Minister Datuk Seri Anwar Ibrahim said the government's plan to shift to the NDI measurement will reduce errors in identifying beneficiaries and is more equitable.
This was among the five strategies to end poverty which were outlined during the National Symposium to End Poverty here today.
"NDI will take into account the reasonable living expenditure.
"Reasonable living expenditure refers to the cost of living needed to maintain a dignified and decent life, including expenses for food, clothing, housing, utilities and transportation, which vary by location and household demographics," he said at the National Symposium to End Poverty.
He said reforming funds will be the second strategy in eliminating poverty.
Anwar, who is finance minister, said the government is committed to continuing fiscal reforms as part of its strategy to restructure the economy towards sustainability.
He said this includes revising the subsidy framework to prioritise more targeted subsidies and assistance, including social aid and poverty programmes.
He said reliance on government funding could lead to fiscal pressure on the government.
"The government encourages contributions from various parties through the involvement of government-linked companies, government-linked investment companies, the private sector and third sector in joint financing initiatives to support community-based solutions."
Anwar said the third effort is related to data integration.
He said this includes cross-checking and regular updates with agencies that distribute aid.
He said this will ensure aid reaches people who deserve them.
He said by 2025, the government aims to use the Central Database Hub (Padu) as the basis for determining eligibility and providing assistance, and enhancing data-driven decision-making initiatives.
The fourth strategy to eliminate poverty focuses on changing attitudes and mindsets, while the fifth strategy emphasises strengthening efforts to eradicate poverty.
"These efforts highlight the importance of behavioural insights to understand the attitudes and behaviours of target groups when designing programmes to free the community and people from the shackles of poverty," he said.