Islam and The Eradication Of Poverty In Malaysia

ISLAM AND POVERTY
DR. AMINI AMIR BIN ABDULLAH

DIRECTOR, ISLAMIC CENTER
UNIVERSITI PUTRA MALAYSIA
November 2008

Islam is deeply committed to eradication of poverty. Qur’an shows great sympathy with the problem of poverty, the poor and needy. Allah says in Al-Quran: They ask Thee How much They are to spend; say: "What is beyond your needs." Thus doth Allah make Clear to you His Signs: In order that ye may consider. (Al-Baqarah: 219) The Muslims are strongly encouraged to disperse in the land and seek of Allah’s bounty and work hard for their life, and remember Allah much, that the Muslims may be successful. Allah says in Surah Al-Jumu’ah: 10: “And when the Prayer is finished, then may ye disperse through the land, and seek of the Bounty of God: and celebrate the Praises of God often (and without stint): that ye may prosper.”

Dasar Ekonomi Baru [New Economic Policy (NEP)] was officially launched in 1971 through the Second Malaysian Plan, 1971-1975. the government formulated the policy with the aim of promoting national unity through a two-pronged strategy: (1)”…to reduce and eventually eradicate poverty by raising income levels and increasing employment opportunities for all Malaysians, irrespective of race.” (2) “…accelerating the process of restructuring Malaysian society to correct economic imbalance, so as to reduce and eventually eliminate the identification of race with economic function.” The policy also aimed at achieving 30% of the Malay ownership of the country’s economy by 1990. For the purpose of increasing Malay and bumiputera professionals, various programmers and plans were established especially in training and education.

The new economic policy is based on a rapidly expanding economy which offers increasing opportunities for all Malaysians regardless of their religious and ethnic origins. The process of restructuring Malaysian society would involve the modernization of rural life, a rapid and balanced growth of urban activities and the creation of a Malay commercial and industrial community. The policy also aimed at achieving 30% of the Malay ownership of the country’s economy by 1990. For the purpose of increasing Malay and bumiputera professionals, various programmers and plans were established especially in training and education. Under the NEP, the government concentrated on four aspects of racial economic imbalance in order to improve the economic condition of the society. Balance in terms of employment patterns, relative incomes, shares in ownership, and control of assets were the targets. The balance was to be achieved within a period of 20 years, Malays and other indigenous people will manage and own at least 30 per cent of the total commercial and industrial activities in all categories and scales of operation.”

As a result of NEP, the awarding of tenders, contracts and transportation licenses have been marked out for preferences to Malays. Government agencies were established and have moved rapidly after 1971 to facilitate Malay entry into business. Some actions were taken to increase government participation in the economy with the establishment of Bank Bumiputera in 1965 and Majlis Amanah Rakyat (MARA) in 1966 to promote Malay entrepreneurship, free and private enterprise.