Social Development Strategies - Iskandar Malaysia

Section A Framework for
Comprehensive Development
Part 2 Development Strategies
CHAPTER 5
Social Development Strategies

Social Development Strategies
chapter
5
5.1 Introduction
This section deals with three socio-economic aspects; poverty, wealth
distribution and the issues relating to the Bumiputera Commercial and
Industrial Community (BCIC).
5.2 Poverty
About 93% of SJER population of 1.35 million live in urban areas. The
rest numbering about 100,000 live in rural areas consisting mainly of
traditional Malay kampungs, Felda schemes, new villages, Orang Asli
settlements and estates. For Johor state, the Poverty Line Income (PLI)
is set at RM634. For hardcore poverty, it is set at RM384 (Ninth Malaysia
Plan).
The overall poverty rate for Johor state was 2.0% in 2004 (the Ninth
Malaysia Plan). The overall poverty rate for SJER is estimated at 0.42%.
■ Urban Poverty
For Johor, the level was at 0.8% in 2002 (Malaysian Quality of Life
Report). This was well below the Malaysian average at 2.0%. For
SJER, the urban poverty rate is estimated at less than 0.1%. This is
very low considering that the majority, 92.6% of SJER population
are urban population.
Based on the proportion of Felda households which is about 15.0%
of the rural population and the proportion of kampung households
which represent most of the remaining 85.0%, the overall weighted
rural poverty rate for SJER is estimated at 4.7%. The rate is still very
much lower than the Malaysian average of 11.9% for rural poverty.
■ Hardcore Poor
The hardcore poverty rates for Johor state and Malaysia were
0.3% and 2.9% respectively in 2004 and (the Ninth Malaysia Plan).
Based on the listings by the Johor Bahru and Pontian district
offices, there is a total of 138 households receiving assistance as
at January 2006 under the Skim Pembangunan Kesejahteraan
Rakyat (SPKR) in SJER of which 100 households are in Johor Bahru
district and 38 households in the three mukims of Serkat, Sungai
Karang and Jeram Batu.
Of these, 117 households earn a gross monthly household
income of less than RM384 which are regarded as hardcore poor
households. Therefore, the hardcore poverty rate in SJER is at less
than 0.1% which is much lower than for Johor and Malaysia.
Based on the above, it is clear that absolute poverty is not a major
problem in SJER.
■ The Less Fortunate
■ Rural Poverty
The rural population in SJER is estimated to be around 100,000
people or 7.4% of the total SJER population. From the Rural
Household Survey done, it was found that the rural poverty rate
for SJER is at 5.6% for traditional kampungs and 1.4% for Felda
schemes.
The Less Fortunate mainly refers to the disabled, the orphans,
the elderly and single mothers. At present, SJER has the highest
number and proportion of the Less Fortunate in the state. It has
9,223 representing 28.9% of the state’s total in 2005. In SJER, the
majority, about 65.0% are the disabled and 16.0% are orphans.
5 - 1

SECTION A
FRAMEWORK FOR COMPREHENSIVE DEVELOPMENT
■ The Orang Asli Communities
There are ten Orang Asli settlements in SJER, nine in Johor Bahru
district and one in the mukim of Serkat with a total population of
around 1,405 persons.
Almost half of the Orang Asli households in Johor Bahru district are
hardcore poor. In Pontian district, only about 10% of the Orang Asli
households are hardcore poor.
■ Profile of the Rural Poor Households in SJER
Based on the Field Survey Report for the Rural Household Survey
(Economic and Social Aspect, 2006), some major characteristics
of the rural poor households in and around SJER are:
□ The majority, 96% of the rural poor households are Bumiputeras.
□ The average household size of the poor households is 4.8 which
is smaller than that of the non-poor households at 5.2
□ About 42% of the members of the poor households are of five
to 19 years old suggesting that these households comprise of
mainly young families.
□ The proportion of the elderly (above 64 years old) is higher
in the rural poor households at 9.5% than in non-poor rural
households at 3% only
□ About 84.2% of the heads of the poor households are married.
The rest, 15.8% are widows and widowers. For the non-poor
kampong households, only 8% are widows and widowers.
□ About 28.4% of the members of the poor households have no
formal education as compared with 5.1% for the non-poor
households.
□ Most working members of the rural poor households work as
fishermen and farmers (66.7%) and sales workers (20%). In nonpoor
rural households, the corresponding figures are 4.7% and
13.4%.
□ About 95% of the poor households are supported by single
working members as compared with two working members in
non-poor rural households.
□ The majority, 84.2% of the rural poor households are landless. In
non-poor rural households, only 67.9% are landless.
□ The unemployment rate (percentage of total work force)
for the rural poor households is higher at 22.7% than in nonpoor
households at about 4.8% only. The overall average
unemployment rate is 5.4%.
□ The majority, 80% of the heads of the rural poor households
stated that they are interested to participate in the relocation
programmes which include a package of land, home and
jobs.
□ A high percentage, 93.3% of them also stated that they are
interested in participating in economic projects at the present
site.
□ About 66.7% of the heads of the rural poor households stated
that they would permit their children to stay at hostels nearby
while another 13.3% would not allow. The rest, 20%, are not
sure.
5.3 Ethnic Difference In Property Ownership
A. Property Ownership
About 15.7% of the whole assessed properties (in terms of number) in
MBJB, MPJBT, MP Kulai and part of MD Pontian (MDP) are owned by
the Bumiputera; 35.5% by the Chinese; 3.6% by the Indians; 13.6% by
developers and the remaining 31.7% by other business entities and
institutions and others. The data for Pasir Gudang is not available. The
Bumiputeras own 28.6% of the total assessed properties in MBJB; 11.9% in
MPJBT; 7.1% in MP Kulai and 11.7% in part of MDP.
B. Property Value
The total value of the assessed properties in the four areas stands
at RM66.65 billion. Of this total, RM33.67 billion or 50.5% are in MBJB,
RM23.47 billion or 35.2% are in MPJBT, RM9.09 billion or 13.6% are in MP
Kulai and RM0.42 billion or 0.6% are in MD Pontian.
5 - 2

SOCIAL DEVELOPMENT STRATEGIES CHAPTER 5 | PART 2
Figure 5.1: Total Value of Assessed Properties by Local
Authority and Racial Groups in SJER, 2006
Within the four areas together, the Bumiputeras own a total of RM7.43
billion or 11.2% of the total property value that are assessed. The
Chinese hold a much larger share at RM20.32 billion or 30.5%. The
16,000.0
MBJB
14,810.7
Indians hold RM1.98 billion or 3.0%; companies hold RM29.04 billion
RM (Million)
14,000.0
12,000.0
10,000.0
8,000.0
6,000.0
4,000.0
4,364.3
12,567.1
or 43.6%; developers hold RM6.66 billion or 10.0% and others hold the
remaining RM1.23 billion or 1.8% (Figure 5.1).
C. Property Value Per Head
2,000.0
834.0 1,090.4
0.6
Malay Chinese Indian Others Other
Business
Entities &
Institutions
Developer
In terms of property value per head of population by race, the total
property value per head for the Bumiputeras is the lowest at RM18,684
as compared with that of the Chinese (RM59,527), the Indians
Ethnicity/Group
(RM24,246) and the Others (RM23,087). This shows that the value per
9,000.0
8,000.0
7,000.0
MPJBT
7,695.1
6,570.4
capita for the Chinese is more than three times larger than that of the
Bumiputeras (Figure 5.2).
RM (Million)
6,000.0
5,000.0
4,000.0
3,000.0
2,000.0
1,000.0
2,690.2
5,383.6
1,005.2
127.6
It is the expressed policy of the Government (refer the Ninth Malaysia
Plan) to narrow this gap between the Malay property ownership and
that of the non-Malays.
250.0
200.0
Malay Chinese Indian Others Other
Business
Entities &
Institutions
Developer
205.8
Ethnicity/Group
MDP
Figure 5.2: Property Value Per Head (in RM) of Various Racial
Groups in SJER, 2006
RM (Million)
150.0
100.0
2,690.2
93.9 87.9
70,000
60,000
59,527
50.0
1.1
Malay Chinese Indian Others Other
Business
Entities &
Institutions
Developer
MPKu
2.8
RM (Million)
50,000
40,000
30,000
20,000
18,684
24,246 23,067
7,000.0
6,000.0
Ethnicity/Group
6,48.3
10,000
RM (Million)
5,000.0
4,000.0
3,000.0
2,159.4
Malay Chinese Indian Others
2,000.0
1,000.0
350.2
135.0
5.7
-
Source: SJER CDP 2025
Malay Chinese Indian Others Other
Business
Entities &
Institutions
Developer
Source: SJER CDP 2025
Ethnicity/Group
5 - 3

SECTION A
FRAMEWORK FOR COMPREHENSIVE DEVELOPMENT
5.4 Bumiputera Participation In Commerce And Industry
The Bumiputera participation in commerce and industries in SJER is still
low.
A. In Commerce
Based on data collected by the Johor Bahru District Local Plan Study,
of the total 27,910 commercial establishments in the whole Johor Bahru
district in 2003, only 4,695 establishments or 16.8% of them were Malay
owned. The Chinese proportion was far higher at 21,514 establishments
or 77.1% whilst the Indian proportion was 884 establishments or 3.2%.
Table 5.1: Equity Ownership of Industries in SJER, 2006 (weighted
averages in percentage)
Ownership E&E Logistics SMEs Chemical
(Plastic)
Food
Bumiputera 10.86 29.80 11.57 5.80 17.35
Non-
Bumiputera
Government/
Public
Institution
27.28 47.48 45.16 76.00 49.18
1.06 2.66 0.72 0.00 2.42
State Owned 0.00 0.00 10.70 0.00 0.00
Foreign 60.80 20.06 31.85 18.20 31.05
Total 100.00 100.00 100.00 100.00 100.00
B. In Industry
Source: Industrial Surveys, 2006 for the SJER Development Master Plan Study
The Bumiputera industrial establishments in Johor Bahru district in 2003
was also low, totalling 799 establishments or 12.0% of a total of 6,642
Figure 5.3: Percentage Distribution of Bumiputera SMEs by
Industry Types in Johor State, 2006
establishments. The Chinese and Indian shares were higher at 64.1% and
19.3% respectively.
18
16
15.04
16.17
The Bumiputera participation is mainly in SMEs. Of the total 1,102 SMEs
in the whole state of Johor which are registered with Small and Medium
Industries Development Corporation (SMIDEC), 24.2% are owned by
Bumiputeras. In terms of capitalised value, the proportion is lower. The
SME Survey (limited to manufacturing) indicates that the Bumiputera’s
overall share is only about 11.6%. These SMEs are largely concentrated
in Johor Bahru district and are largely involved in services, food and
drinks and wood and wood-based industries (Table 5.1 and Figure 5.3).
Percentage (%)
14
12
10
8
6
4
2
0
0 0.38
Rubber
Oil Palm
0.75
Non-Metallic
2.63 2.63 2.63
Metallic
Textile and
Clothing
Logistics
3.76
Transport
Equipment
4.51
Pharmaceutical
4.89
Printing and
Paper Products
5.26
Chemical and
Petrochemical
6.77
Plastic
9.4
Electrical and
Electronic
12.03
Machinery and
Engineering
13.16
Wood and
Based
Food and
Drinks
Services
Industry Type
Of the total number of business licences issued by MBJB and MPJBT
numbering 35,955, the Bumiputeras represent 19.4% of the total. In
contrast, the Chinese represent 72.0% and the Indians 4.3%. However, it
is not known how many of the Bumiputera licensees are active.
The Industrial Surveys (excluding the very large companies) also
revealed that Bumiputera’s equity in specific industries is still low. Their
shares (weighted) are 10.9% in the E&E industries, 5.8% in the chemical
industries, 17.4% in food industries, 11.6% in SMEs and 29.8% in the
logistics services (see Table 5.1, Figure 5.3).
Source: Industrial Surveys, 2006 for the SJER Development Master Plan Study
The proportion of Bumiputeras holding top positions (as managers,
engineers, other professionals, technicians, supervisors and clerical
officers) in all the industries is lower as compared to that of the non-
Bumiputeras.
5 - 4

SOCIAL DEVELOPMENT STRATEGIES CHAPTER 5 | PART 2
Among the Bumiputeras that work in the electrical and electronics
industries, 24.9% only are holding the top posts as compared to 53.7% for
the non-Bumiputeras. In other industries, the proportions of Bumiputera
holding the top positions are also low (40.3% in logistics, 65% in chemical,
56.6% in food and 29.3% in SMEs). In contrast, the proportions for the
non-Bumiputeras are higher (44.8% in logistics, 70.9% in plastic, 61.0% in
food and 46.5% in SMEs) (Table 5.2 and Figures 5.3 and 5.4 ).
Percentage (%)
Figure 5.4: Equity of Industries in SJER, 2006 (weighted averages
in percentage)
80.00
70.00
60.00
50.00
40.00
30.00
20.00
10.00
0.00
27.28
10.8
1.06
60.80
29.80
47.48
2.66
20.06
11.57
45.16
0.72
31.85
76.00
0.00
E&E Logistics SMEs Chemical
Ownership
(Plastic)
18.20 17.35
49.18
2.42
Food
31.05
Bumiputera Non-Bumiputera Government/Public Institution State Owned Foreign
Source: Industrial Surveys, 2006 for the SJER Development Master Plan Study
Table 5.2: Occupational Categories of Various Racial Groups by Major Selected Industry Types in SJER, 2006
Designation
Managers
Engineers
Other
professionals
Technicians
Supervisor and
Clerical
Officers
Skilled workers
Semi skilled
workers
Unskilled
workers
Malaysian
ELECTRICAL & ELECTRONIC LOGISTICS SMEs
Foreigners
Total
Row%
Malaysian
Non-
Bumiputera
Foreigners
Total
Row%
Malaysian
Bumiputera
Non-
Bumiputera
Bumiputera
Bumiputera
Non-
Bumiputera
Foreigners
Row % 11.76 75.00 13.24 100.00 38.50 60.00 1.5 100.00 14.90 72.30 100.00
Column % 0.73 12.76 0.87 3.03 13.54 100.0 1.77 12.36 2.50
Row % 28.85 66.83 4.33 100.00 0.00 100.00 - 100.00 49.70 47,40 3.90 100.00
Column % 1.83 11.59 0.29 - 6.25 - 3.05 4.27 0.40
Row % 31.49 66.38 2.13 100.00 81.80 18.20 - 100.00 54.10 46.00 100.00
Column % 2.26 13.01 0.16 6.55 4.17 - 1.61 1.96
Row % 76.49 15.88 7.63 100.00 92.90 7.10 - 100.00 61.80 24.30 13.80 100.00
Column % 11.35 6.42 1.20 3.15 0.69 - 7.55 4.27 2.70
Row % 70.44 29.31 0.25 100.00 79.60 20.40 - 100.00 48.10 51.60 0.30 100.00
Column % 8.75 9.92 0.03 27.52 20.14 - 15.34 23.67 0.10
Row % 39.38 6.48 54.15 100.00 81.40 18.60 - 100.00 39.30 20.90 30.80 100.00
Column % 45.75 20.52 66.63 10.06 6.60 - 20.56 15.70 33.60
Row % 71.06 10.60 18.34 100.00 60.00 40.0 - 100.00 36.10 34.80 29.10 100.00
Column % 15.99 6.51 4.37 15.64 29.86 - 17.03 23.56 22.20
Row % 37.07 4.08 58.85 100.00 71.90 28.10 - 100.00 79.10 16.7 4.30 100.00
Column % 8.90 2.67 14.97 4.97 5.56 - 16.39 4.97 1.40
Total
Row%
General
Workers
Row% 20.77 28.51 50.72 100.00 86.30 13.70 - 100.00 36.20 13.90 49.80 100.00
Column % 4.43 16.60 11.47 29.09 13.19 - 16.70 9.24 37.10
Total Column % 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
Source : Industrial Surveys, 2006 for the SJER Development Master Plan Study
5 - 5

SECTION A
FRAMEWORK FOR COMPREHENSIVE DEVELOPMENT
Table 5.2 (continued): Occupational Categories of Various Racial Groups by Major Selected Industry Types in SJER, 2006
Designation
Managers
Engineers
Other
professionals
Technicians
Supervisor and
Clerical
Officers
Skilled workers
Semi skilled
workers
Unskilled
workers
General
Workers
Malaysian
FOOD
Foreigners
Total
Row%
Bumiputera
Non-
Bumiputera
Bumiputera
Malaysian
Non-
Bumiputera
CHEMICAL
Foreigners
Total
Row%
Row % 44.4 50.00 5.60 100.00 5.56 88.89 5.56 100.00
Column % 15.1 22.00 16.70 2.50 29.09 6.25
Row % 50.0 50.00 0.00 100.00 63.64 27.27 9.09 100.00
Column % 1.90 2.40 0.00 17.50 5.45 6.25
Row % 50.0 50.00 0.00 100.00 16.67 83.33 - 100.00
Column % 7.50 9.80 0.00 2.50 9.09 -
Row % 66.70 33.30 0.00 100.00 61.54 38.46 - 100.00
Column % 11.30 7.30 0.00 20.00 9.09 -
Row % 57.90 42.10 0.00 100.00 45.00 50.00 5.00 100.00
Column % 20.80 19.50 0.00 22.50 18.18 6.25
Row % 61.50 38.50 0.00 100.00 27.78 50.00 22.22 100.00
Column % 15.10 12.20 0.00 12.50 16.36 25.00
Row % 70.00 30.00 0.00 100.00 57.14 28.57 14.29 100.00
Column % 13.20 7.30 0.00 10.00 3.64 6.25
Row % 20.00 40.00 40.00 100.00 50.00 12.50 37.50 100.00
Column % 1.90 4.90 33.30 10.00 1.82 18.75
Row% 43.80 37.50 18.70 100.00 10.00 40.00 50.00 100.00
Column % 13.20 14.60 50.0 2.5 7.23 31.25
Source : Industrial Surveys,
2006 for the SJER
Development
Master Plan Study
Total Column % 100.00 100.00 100.00 100.00 100.00 100.00
5.5 The Major Strategic Social Development Thrusts
The following Strategic Social Development Thrusts (SSDT) are proposed.
Various initiatives under these thrusts are detailed out in Section B, Part
2, Chapter 8, Social Development Initiatives of the CDP.
SSDT 1: Enhance coordination and cohesion of all government and
non-government agencies involved in social development
SSDT 2: Build social capital as the basis for social cohesion and
intergration
SSDT 4: Adopt and implement a regional and physical development
strategies that will result in the increase in the value of Bumiputera land
and also bring other benefits.
SSDT 5: Promote more mutual funds to spread benefit of the increase in
property and rental values to Bumiputera and to take out the allocated
new property units not taken up by Bumiputeras.
SSDT 6: Enhance and upgrade education and training programme
at all level of skills and with the cluster associations identify critical skill
categories for SJER development.
SSDT 3: Enhance ability of individual Bumiputera and privately owned
Bumiputera companies especially SMEs to acquire landed properties
and enhance their property portfolio by leveraging and participating in
the capital gain.
SSDT 7: Enhance cluster linkages among major public and private sector
corporations and research institutions with Bumiputera companies
especially SMEs.
5 - 6