Malaysia

Akmal: Govt seeks to expand income-generating programme as cost-of-living pressures persist

The Economy Minister pledges to push for an extension of the Income Initiative Programme after highlighting its success in helping low-income Malaysians generate sustainable earnings

Updated 1 month ago · Published on 16 May 2026 11:09AM

Akmal: Govt seeks to expand income-generating programme as cost-of-living pressures persist
Initiatives through vending machines and agricultural entrepreneurship schemes bear fruit -.May 16, 2026

THE government is seeking to expand and extend its Income Initiative Programme (IPR) as part of broader efforts to help low-income households cope with mounting living costs and strengthen long-term economic resilience among vulnerable communities.

Economy Minister Akmal Nasrullah Mohd Nasir said the programme had demonstrated tangible success in enabling participants, particularly from the B40 and urban poor categories, to generate additional income through entrepreneurship initiatives supported by the government.

Speaking during the launch of a strategic collaboration between the Economy Ministry and Majlis Agama Islam Wilayah Persekutuan for the implementation of the IPR-INSAN programme at Masjid Wilayah Persekutuan, Akmal said the administration’s approach could not rely solely on cash assistance.

“The Government’s approach cannot rely solely on assistance alone. Income opportunities are far more important in building a future,” he said.

Akmal noted that while Malaysia’s economy remained resilient, ordinary Malaysians continued to face real pressures linked to living expenses and household costs despite improving macroeconomic indicators.

He said the country’s gross domestic product expanded by 5.4 per cent in the first quarter of 2026, slightly exceeding earlier estimates, while unemployment remained low at 2.9 per cent and inflation stood at 1.7 per cent in March.

However, he stressed that economic data alone did not fully reflect the realities faced by many families.

“The economy is about whether families have enough to put food on the table, whether they can afford to pay rent and cope with the rising cost of living,” he said.

The minister said national poverty rates had continued to decline, with absolute poverty falling to 5.1 per cent in 2024 and hardcore poverty reduced to just 0.09 per cent.

At the same time, average household income increased to RM9,155 in 2024 compared with RM8,479 in 2022.

Despite the progress, Akmal cautioned that economic vulnerability remained fluid and warned that new households could still fall into poverty without sustainable income opportunities.

Under the IPR initiative introduced in 2023, the government provides equipment, training, mentoring and operational support to help low-income participants launch businesses without significant start-up costs.

The programme consists of two main components — IPR-INSAN, which focuses on vending machine-based food entrepreneurship, and IPR-INTAN, which supports agricultural and livestock ventures.

Akmal said the flexibility of the vending machine model allowed participants to generate supplementary income without needing to remain physically present at sales locations.

“For low-income families, RM2,000 is not a small amount. It can cover groceries, house rent, children’s school expenses or serve as small capital to continue doing business,” he said.

According to the minister, 1,125 IPR-INSAN vending machines had been installed nationwide as of 5 May 2026.

Of the 712 active participants, 58 per cent recorded cumulative sales exceeding RM2,000 since operations began, while some entrepreneurs generated between RM10,000 and RM11,000 in monthly sales.

Overall sales under the programme reached RM20.46 million as of March this year.

Akmal cited several examples observed during field visits, including a young entrepreneur in Sungai Petani supporting a household of five family members through sales of homemade food products using the vending machine platform.

Monthly sales at the location reportedly rose steadily from RM1,900 in 2024 to RM2,600 in 2026, reaching nearly RM2,900 in April alone.

“These are not merely figures on paper. These are results we have seen for ourselves. When the location is suitable, the products are right and participants are committed, this programme can generate real income,” he said.

The minister acknowledged that not all locations performed equally well, citing lower sales recorded at a vending machine located at Bursa Malaysia.

However, he said the programme’s strength lay in its adaptability, including changes to menus and operational strategies based on local demand and sales performance.

“IPR-INSAN succeeds when implementation is carried out carefully. It is not a static programme. It is a programme that can be strengthened based on sales data, participant feedback and real conditions at each location,” he added.

Akmal also described the partnership with MAIWP as crucial in expanding the programme to asnaf communities and lower-income households through mosques and religious institutions.

He said mosques could play a broader role beyond religious functions by serving as community support centres and platforms for economic empowerment.

“A mosque is not merely a place of worship. It can also become a community centre, a social support centre and a hub for economic opportunities,” he said.

Given the programme’s performance, the Economy Ministry plans to submit an application to the Finance Ministry seeking a further 24-month extension for IPR-INSAN.

The proposed expansion aims to reach more urban B40 households and help families build sustainable incomes while preserving dignity and reducing dependency on aid.

“In challenging economic times, the Government will continue to be present. Not merely to help the people endure, but to open pathways for them to rise. I believe that when people are given opportunities, they will strive forward and the country will become stronger,” Akmal said. - May 16, 2026

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