Three Major Threats - Money, Food and Living Conditions - Khazanah ...
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
The Impact of Covid-19 on the Urban Poor:
Three Major Threats – Money, Food
and Living Conditions
VIEWS 17 /20 | 27 March 2020 | Puteri Marjan Megat Muzafar and Theebalakshmi Kunasekaran
Views are short opinion pieces by the
author(s) to encourage the exchange of
ideas on current issues. They may not
necessarily represent the official views of
KRI. All errors remain the authors’ own.
This view was prepared by Puteri Marjan
Megat Muzafar and Theebalakshmi
Kunasekaran, researchers from the
Khazanah Research Institute (KRI). The
authors are grateful for the valuable
comments from Dr Suraya Ismail and
Rachel Gong.
Authors’ email address:
marjan.muzafar@krinstitute.org
theebalakshmi.kuna@krinstitute.org
Attribution – Please cite the work as follows:
Puteri Marjan Megat Muzafar and
Theebalakshmi Kunasekaran. 2020. The
Impact of Covid-19 on the Urban Poor:
Three Major Threats – Money, Food and
Living Conditions. Kuala Lumpur: Khazanah
Research Institute. License: Creative
Commons Attribution CC BY 3.0.
Translations – If you create a translation of How Coronavirus may disproportionately
this work, please add the following affect families in PPRs
disclaimer along with the attribution: This
translation was not created by Khazanah
Research Institute and should not be
The Movement Control Order (MCO) has led to major
considered an official Khazanah Research segments of Malaysia’s economy shutting down or
Institute translation. Khazanah Research
scaling back in a nationwide effort to slow transmission
Institute shall not be liable for any content or
error in this translation. of the novel coronavirus. However, one segment of the
population that is perhaps more susceptible to the
Information on Khazanah Research Institute
publications and digital products can be
adverse economic effects of the pandemic is the urban
found at www.KRInstitute.org. poor – those with the lowest paying jobs and the fewest
financial resources, coupled with living in high-density
areas and overcrowded flats which increase the risk of
infections.
KRI Views | The Impact of Covid-19: Three Major Threats – Money, Food and Living Conditions 1The extension of the MCO until 14 April 2020 is expected to put further pressure on the already financially distressed urban poor, particularly those living in Projek Perumahan Rakyat (PPR). As of 2017, there are 73,622 PPR units nationwide, with the majority being in KL (31,592 units)1. Hence, this opinion piece highlights how the Covid-19 driven MCO could impact families living in PPRs and the challenges that they may face during these trying times. Adverse impact on their income and financial security Past pandemics have disproportionately hurt the working poor, and it seems that the Covid-19 outbreak will not be an exception. The government has ordered the rakyat to stay at home and discouraged them from going out except to perform necessary tasks and errands. Meanwhile, companies are now adopting ‘work-from-home’ policies to reduce unnecessary travelling. However, these protective measures might have overlooked one thing: the poor urban workers whose work either (1) requires physical presence and cannot be performed remotely, or (2) provides a much-needed income where not working means not having enough money to put food on the table. Contrary to white-collar workers, working from home is not an option for some of the households in the PPRs as their work requires them to be physically present e.g. lorry drivers, restaurant workers, and grocery store clerks. The nature of these jobs requires them to interact with others almost daily which increases their rate of contracting the disease – and subsequently spreading it. A study by Bank Negara Malaysia (BNM) estimated that a single adult living in Klang Valley needs to earn at least RM2,700 a month in 2016 to have a dignified life, while married couples with two children require around RM6,5002. Similarly, a KRI report shows that after factoring the household size and economies of scale of living together, single person households require at least RM2,399 before they could lead a comfortable living and exhibit consumption patterns that is “aspirational” or middle-income group3. However, data from Jabatan Perumahan Negara (JPN) show that 65.8% of the head of households in PPRs nationwide earn below RM2,000, whilst the average monthly income of households in PPRs hovers around RM2,000 in more urbanised states - RM2,039.40 for Selangor and RM1,994.40 in Kuala Lumpur (see Figure 1). In other words, these households are probably already struggling to make ends meet and the repercussions from the outbreak will create a huge dent in their finances. 1 JPN (2017). These figures only include PPRs that are under the ‘PPR Disewa’ scheme. 2 Chong and Khong (2018) 3 Equivalised income takes into account of the differences in a household’s size and composition, and thus is equivalised or made equivalent for all household sizes and compositions. See Hawati Abdul Hamid, Gregory Ho Wai Son and Suraya Ismail (2019) for an in-depth discussion on demarcating households through an integrated income and consumption analysis. KRI Views | The Impact of Covid-19: Three Major Threats – Money, Food and Living Conditions 2
Figure 1: Estimated average monthly income by state
Melaka 2,573.70
Selangor 2,039.40
Kuala Lumpur 1,994.40
Negeri Sembilan 1,964.30
Pahang 1,942.80
Johor 1,834.90
Overall 1,786.80
Terengganu 1,750.00
Kedah 1,506.80
Pulau Pinang 1,437.00
Perak 1,302.50
Sabah 1,155.00
Perlis 966.70
RM0
- 500 1,000 1,500 2,000 2,500 3,000
Source: JPN (2017)
The Malaysian Institute of Economic Research (MIER) also warned that the latest decision to
extend the MCO will result in some 2.4 million people losing their jobs, where 67% of the layoffs
will be unskilled workers4. A KRI study5 found that 59% of the head of households in PPRs
attained education up to secondary level, while around 7% of them have never attended school.
Having a lower education level means that their options for work are limited to low-skilled type
of work such as jobs in the retail industry6. Additionally, 3.8% of the head of PPR households are
temporary or part-time workers, making them further dispensible in light of the current
economic uncertainty.
Furthermore, approximately 20% of households in PPRs are self-employed and/or earn income
through their small businesses7. However, the outbreak has now led to these businesses having
to either scale back or close shop, cutting these households off from one of their main sources of
income. We have also discovered that a considerable proportion of PPR households work in
informal employment such as petty traders, tailors, and freelancers8, and thus lack the social
security that formal workers enjoy such as paid leave, EPF and SOSCO coverage9. Consequently,
this also means that they are not covered by social protection measures introduced by the
government (such as allowing RM500 monthly EPF withdrawals).
4 Emir Zainul (2020)
5 KRI (2020)
6 Generally, household income is associated with their education level. In ‘The State of Households 2018: Different
Realities report’ we showed how household heads who had at least a degree qualification had household incomes of
more than 3.6 times to those with no certificate (KRI, 2018).
7 KRI (2020)
8 KRI (2020)
9 Nur Thuraya and Tan (2019)
KRI Views | The Impact of Covid-19: Three Major Threats – Money, Food and Living Conditions 3On top of all these challenges, parents with children now struggle with balancing responsibilities at work and at home. On one hand, they need to earn income. On the other hand, they have to provide childcare as schools and and kindergartens are ordered to close following the MCO. Our own survey estimated that around 29% of the PPR households have at least one child living with them10. Limited access to affordable food and goods, as well as a risky reliance on public transportation The MCO enforcement has strictly prohibited the operation of informal markets such as night markets (pasar malam) and farmers’ markets (pasar tani) to minimize the risk of Covid-19 transmission. It is important to note that these markets are both a source of income and affordable products11 for many low-income households. They are highly dependent on these informal markets to access cheap food and goods (e.g. fresh produce, household goods, clothes) despite living near large retail stores. Our study finds that households in the PPRs visit these markets at least once a week (1.3 times a week), with some households even doing daily trips for their essentials12. Hence, we expect that the closure of these markets will lead to 1) the market traders losing their income and 2) households losing access to affordable provisions. The households’ options are now limited to the kedai runcit operating in their complexes – which may not be able to keep up with the sudden increase in demand - or nearby supermarkets which products may cost beyond their normal budget. Our “The State of Households 2018” report estimated that in 2016, households with income below RM2,000 spent 94.8% of their income on consumption items. Perhaps more worryingly, it is estimated that their remaining income after accounting for consumption and inflation is only RM7613. This raises a concern of whether PPR households have the savings necessary to withstand emergency events. In fact, we have seen cases14 of PPR residents failing to pay rent for a prolonged period due to financial constraints. For better-off families, it is easier to comply with the MCO because they can prepare by buying sufficient supplies for their households to last a few days. However, that is not an option for those in the PPRs which lacks the financial means to do so. Consequently, they would have to make more frequent trips to the supermarkets, ultimately putting them at a higher risk of contracting the virus. Households that usually rely on public transportation will now find their mobility further restricted due to the suspension of certain free bus services (such as Smart Selangor and PJ City Bus) and other forms of public transportation (i.e. LRT, MRT, Monorail, and RapidKL bus) reducing their frequencies and limiting their operating hours to only peak periods to assist workers in the essential sectors. This might limit the mobility of PPR households, especially those without personal transport to perform essential tasks e.g attending regular hospital 10 KRI (2020) 11 Nungsari Ahmad Radhi, Hamdan Abdul Majeed and Dr Muhammed Abdul Khalid (2020) 12 KRI (2020) 13 KRI (2018) 14 Mohammad Hussin (2019) and Fairul Asmaini (2019) KRI Views | The Impact of Covid-19: Three Major Threats – Money, Food and Living Conditions 4
appointments. Our study15 revealed that PPR residents frequently use public transport (a combination of bus, trains and taxis), on average, nearly three times a week. Given their current financial constraints, taking a taxi or e-hailing service will be an extra burden for those households without personal vehicles. Poor infrastructure exacerbating the problem Poor housing environments paired with overcrowding conditions are commonly associated with higher rates of diseases. Neiderud16 has discussed in detail how risk factors in the urban environment (i.e. poor sanitation, waste management, inadequate ventilation) contribute to vector proliferation and spread of diseases. To make things worse, high-density infrastructures (which are common for PPRs in urban areas) increase the probability of transmission simply because of the sheer magnitude of people confined within that area, thus increasing the likelihood of close contact. Similarly, residents are also limited to using the same common facilities (such as sharing 3 lifts for one block of about 316 units). To put things into perspective, a typical PPR in Kuala Lumpur consists of at least 316 units per 17-floor block. If the average household size is 4.6, then assuming all units are occupied, approximately 1,455 people would be crammed all together in one building. If we are not careful, these PPRs might be the perfect breeding ground for the novel coronavirus. Indeed, a study modelling the influenza transmission in Delhi found that areas with ‘slum neighbourhood characteristics’ (e.g. population density and high estimated contact rates) are significantly associated with larger epidemics and earlier infection peaks17. We think that sanitation remains an issue for these high-density PPRs. The JPN study found that residents living in high-rise PPRs reported lower satisfaction on cleanliness compared to those living in landed or walk-up PPRs18. We also found cleanliness to be an issue from our observations of the PPRs19. Given the current outbreak, it is imperative that sanitation efforts in the PPRs are intensified to reduce the risk of disease spread20. Another concern during the isolation order is the effect on the mental and physical health of the residents confined into a small space for a long period. We estimated that about 14% of households in the PPRs live in overcrowded conditions21. The organisation Shelter22, has aptly described the impact of overcrowding on families: 15 KRI (2020) 16 Neiderud, C. J. (2015) 17 Chen et. al, 2016 18 JPN (2017) 19 KRI (2020) 20 The Federal Territories Minister, Tan Sri Annuar Musa urged the management committees of PPRs should ‘take proactive measures such as maintaining the cleanliness of their respective flats or apartments’. (Adib Povera, 2020) 21 We defined overcrowding as more than 2 person sharing a bedroom. 22 Shelter is a registered charity in the United Kingdom that assists people with bad housing conditions or homelessness. KRI Views | The Impact of Covid-19: Three Major Threats – Money, Food and Living Conditions 5
“Living in cramped conditions can have a detrimental effect on children’s health, education,
and general well-being. Overcrowding can increase the spread of illness and cause unsettled
sleep patterns. It impacts privacy for all family members, and can make it harder for
children to find a quiet space to read or do their homework. It can also affect the quality of
relationships between parents and children, and between siblings.”
Shelter. 2005. Full house? How overcrowded housing affects families.
To make things worse, not all residents have reliable access to the internet and rely on public
internet centres (Pusat Internet 1Malaysia) usually built within the PPR complex23. As a result,
they are less able to perform tasks remotely such as performing work from home or even
participating in online learning.
Concluding remarks
In these past two weeks, the government has announced various economic stimulus packages to
assist the rakyat by relieving some of their financial difficulties during the MCO period. However,
it is important to ensure that these measures do not neglect vulnerable segments of the
population – such as the urban poor families living in the PPRs. To accomplish this, there needs
to be a profound understanding of their socioeconomic backgrounds and how this is linked
together with their living conditions.
So far, some measures announced by the federal government that could benefit some of the PPR
households are 1) rent exemption for a month for selected PPRs, 2) the distribution of Bantuan
Sara Hidup (BSH) in March instead of May, and 3) a one-off payment of RM500 for small
businesses and stall owners. There are also measures by the state governments such as Pulau
Pinang offering rental exemption for PPR households for two months.
This opinion piece puts forward three major concerns that the government should take into
consideration when designing relief packages for vulnerable urban poor like PPR households.
• Firstly, some PPR households do not have the flexibility to work from home due to the
nature of their jobs. However, not going to work probably means losing their only source
of income.
• Secondly, their demand and access to affordable goods and services are affected by the
closure of informal markets (a major supplier for them) and limited public transportation
services. The remaining options might cost them more than their normal budget which
would further strain on their finances.
• Thirdly, the poor living conditions of these households (i.e. high-density areas,
overcrowded space and lack of sanitation) ultimately increases the risk of virus
transmission as well as having a detrimental effect on their physical and mental health.
23 We do found some PPRs having built in community wi-fi, however this seems to be unique to the PPR and not a
standard feature.
KRI Views | The Impact of Covid-19: Three Major Threats – Money, Food and Living Conditions 6While most of the recent discourse and measures have covered the impact of the MCO on income,
it is equally important to address the concern on access to affordable food (and other necessities)
and the present living conditions. The MCO extension would cause these households to be worse-
off if prompt actions are not being taken.
Nevertheless, more inclusive and comprehensive measures need to be considered. We believe the
government would benefit from soliciting the input of PPR residents as to what measures would
most benefit them. PPR resident association and community leaders could provide input to their
local representatives for state government consideration regarding stimulus and benefits
packages. This would put state allocations to their best use.
Authors’ thoughts: Some of us are fortunate enough to have the luxury of working from home
without having to worry about the next paycheck coming in. However many others are not so lucky.
A reduced earning for some means slight changes to their budget, whilst for others it is a question
of foregoing which essentials.
References
Adib Povera. 2020, March 22. 4 locations in KL identified as Covid-19 red zones.
https://www.nst.com.my/news/nation/2020/03/577048/4-locations-kl-identified-
covid-19-red-zones
Chen, J., Chu, S., Chungbaek, Y., Khan, M., Kuhlman, C., Marathe, A., Mortveit, H., Vullikanti, A. and
Xie, D. 2016. Effect of modelling slum populations on influenza spread in Delhi. BMJ open,
6(9), e011699.
Chong, Eilyn, and Farina Adam Khong. 2018. The Living Wage: Beyond Making Ends Meet. Bank
Negara Malaysia.
http://www.bnm.gov.my/index.php?ch=en_publication&pg=en_work_papers&ac=62&bb
=file.
Emir Zainul. 2020, March 24. Malaysia will face recession if partial lockdown extended, MIER
warns. theedgemarkets.com. https://www.theedgemarkets.com/article/malaysia-will-
face-recession-if-partial-lockdown-extended-mier-warns
Hawati Abdul Hamid, Gregory Ho Wai Son and Suraya Ismail. 2019. Demarcating Households:
An Integrated Income and Consumption Analysis. Kuala Lumpur: Khazanah Research
Institute. License: Creative Commons Attribution CC BY 3.0.
http://www.krinstitute.org/assets/contentMS/img/template/editor/Publication_Demarc
ating%20Households_Full%20Report11032020.pdf
JPN. 2017. Kajian Kesejahteraan Komuniti Program Perumahan Rakyat (PPR).
JPN.2017. Perangkaan JPN 2017. Putrajaya: Jabatan Perumahan Negara, p.3
KRI. 2018. The State of Households 2018: Different Realities. Kuala Lumpur: Khazanah Research
Institute.
KRI Views | The Impact of Covid-19: Three Major Threats – Money, Food and Living Conditions 7http://www.krinstitute.org/assets/contentMS/img/template/editor/20181127_Full%20
Report%20KRI%20SOH2018.pdf
KRI study 2020. KRI conducted a Housing Satisfaction Survey in selected PPRs in Kuala Lumpur
and Pulau Pinang between 2016 – 2017. The findings of this survey are expected to be
published this year.
Neiderud, C. J. 2015. How urbanization affects the epidemiology of emerging infectious diseases.
Infection ecology & epidemiology, 5(1), 27060.
Nungsari Ahmad Radhi, Hamdan Abdul Majeed and Muhammed Abdul Khalid. 2020, March 23.
Open letter to PM: The war on Covid-19 – a time for action and leadership.
Themalaysianreserve.com. https://themalaysianreserve.com/2020/03/23/open-letter-to-
pm-the-war-on-covid-19-a-time-for-action-and-leadership/
Nur Thuraya Sazali and Tan Zhai Gen. 2019. “The Demise of Formal Employment? — A Literature
Update on Informality”. Khazanah Research Institute.
http://www.krinstitute.org/assets/contentMS/img/template/editor/Discussion%20Pap
er_The%20demise%20of%20formal%20employment%20A%20literature%20update%2
0on%20informality.pdf
Mohammad Hussin. 2019, August 26. Gaji tak mencukupi. MyMetro.com.
https://www.hmetro.com.my/mutakhir/2019/08/489887/gaji-tak-mencukupi
Fairul Asmaini Mohd Pilus. 2019, August 24. DBKL rugi RM58j tunggakan sewa PPR, PA.
MyMetro.com. https://www.hmetro.com.my/mutakhir/2019/08/489336/dbkl-rugi-
rm58j-tunggakan-sewa-ppr-pa
Shelter. 2005. Full house? How overcrowded housing affects families.
https://england.shelter.org.uk/__data/assets/pdf_file/0004/39532/Full_house_overcrow
ding_effects.pdf
KRI Views | The Impact of Covid-19: Three Major Threats – Money, Food and Living Conditions 8You can also read
