Public services for basic needs in Malaysia

Abstract

This paper reports on results with respect to meeting basic needs from a larger study of the distribution of public expenditure in Malaysia. Both the paper and the larger study heavily rely on a household survey providing data on consumption of public services. The analysis shows that the poorest categories of Malaysians, namely the Malays, rural dwellers, and those living in the North, are the least well served by public utilities. But they are well represented in use of public medical care and primary education. What also emerges is that many of the poor are unable to avail themselves of certain services because their incomes are too low. If more of the poor are to have their children educated to higher levels, the out-of-pocket costs that constitute such a heavy burden for them probably will somehow have to be subsidized. If the poor are universally to have pure water and electricity it appears that fundamental changes will have to be made in policies for pricing the consumption of these services to reduce their rates to the poor.