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Happiness and Well-Being Seminar INTAN Bukit Kiara, Kuala Lumpur
2 June 2016
The Malaysian Well-Being Index Looking Beyond the Economic
Dimension
Economic Planning Unit Prime Minister’s Department
Putrajaya
Institute of Public Administration
Embassy of Denmark, Kuala Lumpur
Happiness is a choice not an achievement
Nothing will make you happy until you decide to be happy
~ Ralph Marston ~
1
2
3
4
Outline
The Rationale
The MWB Index
The Results
The Way Forward
Focus on development beyond the economic dimension since 1991 …
4
New Economic
Policy 1971-1990
2nd Malaysia Plan (MP)
3MP
4MP
5MP
National Development
Policy
1991-2000
6MP
7MP
National Vision Policy
2001-2010
8MP
9MP
National Transforma- tion Policy
2011-2020
10MP
Eleventh Malaysia Plan
Vision 2020 1991-2020
Post Independence,
1956-1970
1st Malaya Plan 2nd Malaya Plan 1st Malaysia Plan
Growth with equity
Balanced development
A resilient and competitive
nation
New Economic Model
(a high-income nation, inclusive and sustainable)
Total development
1. The Rationale
… Through game-changing policies
5
1. The Rationale
• Total Development : To be developed in our own
mould - economically, politically, socially, spiritually,
psychologically and culturally
• Nine challenges to overcome
– Establishment of a United Malaysian Nation made
up of one Bangsa Malaysia
– Creation of a psychologically liberated, secure and
developed Malaysian society
– Fostering and development of a mature democratic
society
– Establishment of a moral and ethical society
– Establishment of a matured, liberal and tolerant
society
– Establishment of a scientific and progressive society
– Establishment of a fully caring society
– Development of an economically just society
– Establishment of a prosperous society
Balanced development
• Optimum balance
between economic growth
and equity
• Greater material welfare
imbued with positive
social and spiritual values
• Balanced regional
development for national
integration
• Balanced development of
major sectors
• Human resource
development
• Development and
protection of environment
and ecology
Vision 2020, 1991-2020 National Development
Policy, 1991-2000
In line with the UN SDGs 2030 and fully mapped out onto the Eleventh Malaysia Plan strategic thrusts
6
1. The Rationale
2 Improving wellbeing for all
5
Strengthening infrastructure to support economic expansion
3
Accelerating human capital development for an advanced nation
4
Pursuing green growth for sustainability and resilience
6
Re-engineering economic growth for greater prosperity
Enhancing inclusiveness towards an equitable society 1
11MP Strategic Thrusts
7
1. The Rationale
In perspective : The Malaysian Economic Performance
Real GDP, CPI (% p.a.), Unemployment (%)
Sustainable real GDP growth with low inflation and full employment
1 2 Income per capita has expanded 23 times since 1970
0.5
-1.1
-7.4
0.5
-1.5
5.0
2.1 3.3
-8.0
-6.0
-4.0
-2.0
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
72 '75 '78 '81 '84 '87 '90 '93 '96 '99 '02 '05 '08 '11 '14
Real GDP CPI Unemployment rate
1971-2015 (% per annum) • Real GDP: 6.2% • CPI: 3.6% • Full employment since 1992
Note: Based on GDP (2010 = base year) 7
402
9,291
1,085
25,586
0
5
10
15
20
25
30
1970 1980 1990 2000 2010 2015
US$ (nominal)
US$ (PPP)
GDP per capita
1. The Rationale
8
0.513
0.442
0.443
0.441
0.431
0.401 0.355
0.391
1970
1989
1999
2009
2012
2014
Urban
Rural
National
Tremendous achievement in poverty eradication
1 Wealth inequalities has declined 2
21.3
0.3
58.7
1.6
49.3
8.5
0.6 0
10
20
30
40
50
60
1970 1980 1999 2012 2014
Urban
Rural
National
% of Households
Significant reduction in poverty
Gini Coefficient
8
In retrospect – Many initiatives have been undertaken to measure well-being of Malaysia
9
1. The Rationale
By Malaysians
Already established
• Malaysian Well-being Index (est. 2000)
(Economic Planning Unit)
• Malaysian Youth Index (est. 2006)
(Malaysian Institute for Research in Youth Development)
• Family Well-being Index (est. 2011)
(National Population and Family Development Board)
• Working Quality of Life Study (2012)
(Malaysian Productivity Corporation)
• Muslim Ummah Development Index (est. 2016)
(Institute of Islamic Understanding)
In progress
• Multi-dimensional Poverty Index (Economic Planning Unit)
• National Unity Index (Department of National Unity and Integration)
• Happiness Index (Ministry of Finance)
By International Agencies
Report M’sia’s Performance (2014/2015)
• World Happiness Index
50/168
• Legatum Prosperity Index
44/142
• Environmental Performance Index
63/178
• Human Capital Index 52/124
• Human Development Index
62/188
• Social Progress Index 46/133
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Outline
The Rationale
The MWB Index
The Results
The Way Forward
The Malaysia Well-being Index in evolution …
11
2. The MWB Index
In Progress: Malaysian Well-Being
Report 2016
Initially called the Malaysian Quality of Life Index …
… before being re-branded in 2013
Objectives of the MWBI
• To serve as a systematic form of measurement to assess the
impact of development on the well being of the Malaysian
population
• To complement the traditional economic measurement of
development as embodied in various development plans
• To enable proper monitoring and evaluation of total
development in order to achieve effective development planning
The Malaysian Well-Being Index : A complimentary policy tool to monitor developmental progress
12
2. The MWB Index
Encompassing personal advancements, a healthy lifestyle, access
and freedom to pursue knowledge
Attaining a standard of living, which surpasses the fulfilment of
the basic and psychological needs of the individual
Achieving a level of social well-being compatible with the
nation’s aspirations
MWBI : Adapted definition of well-being
Malaysian Well-being Index : Components
13
2. The MWB Index
1 2
4
8 9
10
11 12
13 14
Trans- portation
Com- munica-
tion
Gover- nance
Public Safety
Social Partici- pation
Culture Health
Environ-ment
Family
Equality Quality
Health Level
Health-care
Services
Institu- tion
Financial Health
7
Income &
Distri- bution
• 14 components and 68 indicators
• Composite index of equal weight between components
Leisure Educa-
tion
3
Economic Dimension (5 components/27 indicators)
Social Dimension (9 components/41 indicators)
Housing
6
Working Life
5
• OECD Your Better Life Index 2012 : 11 dimensions
Education, community, environment, community participation, health,
housing, income, employment, safety, satisfaction of life and work
balance
• EIU Quality of Life Index 2005 : 9 dimensions
Material wellbeing, health, political stability, security, family life,
community life, climate and geography, job security and political freedom
• World Happiness Report 2013 : 6 dimensions
GDP per capita, healthy life expectancy, social support, perceptions of
corruption, generosity and freedom to make life choices
• Human Development Indicator 2013 : 4 dimensions
Life expectancy, expected years of schooling, mean years of schooling
and Gross National Income per capita
MWBI : Benchmarked against selected international initiatives
14
2. The MWB Index
Malaysian Well-being Index : Indicators (Economic)
15
2. The MWB Index
Transportation (4) 1 Communications (4) 2
Income & Distribution (3) 4
Education (12) 3
Working Life (4) 5
• Road Development Index (RDI) (+)
• Private motorcars and motorcycles
(per ’000 population) (+)
• Road length per capita (km) (+)
• Rail ridership (million) (+)
• Fixed and mobile telephone lines subscriptions
(per ‘000 population) (+)
• Internet suscriptions (per ‘000 population)(+)
• Number of hotspot locations (+)
• Number of domain names (per ‘000 population) (+)
Equality
• Pre-school participation rate (+)
• Primary school participation rate (+)
• Secondary school participation rate (+)
• Tertiary participation rate (+)
Quality
• Literacy rate (+)
• % of graduate teachers in primary school (+)
• % of graduate teachers in secondary school (+)
• National Average Grade (UPSR) (+)
• National Average Grade (SPM) (+)
• Number of lecturers with PhD (+)
• Primary education survival rate (+)
• Secondary education
• Real per capita income (GNP) (RM) (+)
• Gini coefficient based on disposable income (-)
• Incidence of poverty (-)
• Trade disputes (-)
• Man-days lost due to industrial action (‘000) (-)
• Industrial accidents (-)
• Average working hours (-)
Malaysian Well-being Index : Indicators (Social)
16
2. The MWB Index
Housing (5) 6 Leisure (4) 7
Public Safety (2) 9
Governance (4) 8 Social Participation (4) 10
• % of low-cost housing units to bottom 40% (+)
• % of households with treated water (+)
• % of households with electricity (+)
• % of households with garbage collection
services (+)
• Crowdedness (no. of persons per room) (-)
• No. of households with paid TV subscriptions
(‘000) (+)
• Domestic hotel guests (per ‘000 population) (+)
• Recreational parks visitors (per ‘000 population) (+)
• Cinema goers (per ‘000 population) (+)
• % of corruption cases prosecuted (+)
• No. of e-payment transactions (million) (+)
• % of cases solved by the Public Complaints
Bureau (+)
• % of tax e-Filing users (+)
• Crime rate (per‘000 population) (-)
• Road accidents (per‘000 vehicles) (-)
• % of registered voters (per population aged
21 years and above) (+)
• No. of registered non-profit organizations
(per ‘000 population) (+)
• No. of registered residents association (+)
• Membership in RELA and RakanCop (per ‘ 000
population(+)
Malaysian Well-being Index : Indicators (Social)
17
2. The MWB Index
Culture (4) 11 Environment (5) 13
Health (7) 12 Family (6) 14
• Membership in public libraries (per ‘000
population) (+)
• No. of Istana Budaya visitors (per ‘000
population) (+)
• No. of museum visitors (per‘000 population) (+)
• No. of Kompleks Kraf visitors (per‘000
population) (+)
Health level
• Life expectancy at birth (+)
• Infant mortality rate (per 1,000 live births) (-)
• Maternal mortality rate (per 100,000 live
births (-)
• Non-communicable disease cases (per ‘000
population)(-)
Healthcare services
• No. of beds in hospitals (per‘000 population) (+)
• Population per doctor ratio (-)
• Hospital waiting time for out-patients
(minute) (-)
• Air quality (% of station with IPU<50) (+)
• Water quality (% of clean river monitored) (+)
• % of forested land (+)
• Quantity of scheduled waste generated
(tonnes/population) (-)
• Maximum mean temperature (°C) (-)
Family Institution
• Divorce rate (% of population age 18 and above) (-)
• Domestic violence cases (-)
• Juvenile crimes (% of population age 10-18) (-)
Financial Health
• Mean monthly households income (RM) (+)
• Household debt per capita (RM) (-)
• Dependency ratio (-)
1
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Outline
The Rationale
The MWB Index
The Results
The Way Forward
The Malaysian Well-being Index 2014*
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3. The Results
100
105
110
115
120
125
130
135
'00 '02 '04 '06 '08 '10 '12 '14
Overall Economic Component Social Component
Index
Economic well-being improved faster than social well-being …
Note: *Preliminary results
Component 2000 2014 Point Change
2000-2014
Economic Well-being 100 131 31
• Income & Distribution 100 137 37
• Transport 100 136 36
• Education 100 136 36
• Communications 100 133 33
• Working Life 100 114 14
Social Well-being 100 123 23
• Housing 100 145 45
• Leisure 100 136 36
• Public Safety 100 134 34
• Governance 100 133 33
• Culture 100 119 19
• Health 100 118 18
• Social Participation 100 116 16
• Environment 100 103 3
• Family 100 100 0
… but there are areas of concern
The Malaysian Well-being Index 2014* : Policy response for health
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3. The Results
Note: *Preliminary results
Addressing concerns in health issues
Increase in number of lifestyle diseases …
4.0
4.5
5.0
5.5
6.0
6.5
7.0
7.5
'12 '13 '14
Cases of non-communicable diseases per 1,000 population
Selected health programmes
• Improve lifestyle
‒ 10,000 Steps Campaign : fitness
programme
‒ Portal MyHealth : online-based health
risk assessment
‒ Healthy Community Programme :
intervention by change agents for high-
risk NCD cases
The Malaysian Well-being Index 2014* : Policy response for environment
21
3. The Results
Note: *Preliminary results
Addressing concerns in environmental issues
Deteriorating environment …
24
29
34
39
44
49
54
59
64
69
74
'00 '02 '04 '06 '08 '10 '12 '14
Water quality (% of rivers monitored) Selected green programmes
• Jelajah Jejak Mesra 1Malaysia :
awareness programmes on
preserving/appreciating nature
• Earth Day Celebration/World Nature’s
Day: awareness programmes
• Smart Partnership Towards Sustainable
Environment : Engagement programmes
with strategic Partners of the Department
of Environment
• Promoting the green industry practices
and sustainable industries
• River of Life programme, Love Our River
campaign
The Malaysian Well-being Index 2014* : Policy response for family
22
3. The Results
Note: *Preliminary results
Addressing concerns in family issues
Greater stress on the family institution …
0.5
1.0
1.5
2.0
'00 '02 '04 '06 '08 '10 '12 '14
Number of divorces per 1,000 population above 18 years of age
0.0
1.0
2.0
3.0
'00 '02 '04 '06 '08 '10 '12 '14
Number of juvenile crimes per 1,000 population age 10-18 years
Selected family-based programmes • 1Malaysia Family First Movement -
building prosperous, healthy and resilient families
• 1Malaysia Women’s Initiative for Self-Empowerment – entrepreneurship opportunities
Selected youth programmes
• Annual Youth Festival – training and
entrepreneurship opportunities, sports,
hobbies, entertainment
• Belia Mahir 1Malaysia – skills training
(formal and non-formal), apprenticeship
• National Sports Day
• Rakan Muda – Community youth (in-
situ) development, volunteerism
1
2
3
4
Outline
The Rationale
The MWB Index
The Results
The Way Forward
The Malaysian Well-being Index : Way Forward
24
3. The Results
Focus on main areas of concerns
• Rising cost of living
• Deterioration in the family institution
• Environmental pollution
• Rise in cases of lifestyle diseases
Areas for improvement for future consideration
• Incorporate subjective well-being component
• Extend analyses to sub-national level
Target a 1.7% annual increase in overall MWBI during
11MP period, 2016-2020
Economic Planning Unit Prime Minister’s Department, Putrajaya
www.epu.gov.my
Thank You
