RAGS TO RICHES:

ENGAGING
TECHNOLOGIES
TO ERADICATE POVERTY

EXECUTIVE SUMMARY

The AZAM Tani Programme with the overarching goal to increase the income of the hardcore
poor by providing economic assistance to agricultural projects based on cash crop cultivation,
fisheries, livestock, processing of agricultural products, agro-based business and agriculture
services. The implementation of innovative technological and management systems showed that
Malaysia has been successful in decreasing the poverty rate from 3.8% in 2009 to 1.7% in 2012.
The AZAM Tani Programme implemented by MARDI managed to increase the economic status of
54% of 1,760 participants. These participants increased their household income by 40% or higher.
Malaysia has taken the bold step of using the National Blue Ocean Strategy (NBOS) to transform
the government delivery of services to be more efficient through optimal use of national resources
and reduce the gap that exists in various public and private organizations. In the blue ocean
strategy approach, the unused land in Sepang owned by the Ministry of Defence that is unsuitable
for conventional agriculture have been successfully transformed into a high-tech agricultural areas.
The funding of this project (utilizing the unused land) was provided by the Ministry of Women,
Family and Community Development under the Azam Tani Programme. This approach chooses
to use a new cultivation technology that involves a soilless production system called fertigation.
The AZAM Tani Programme with the support of NBOS approach has contributed to the success of
eradication of poverty. The achievements have been recognized by the Ministry of Agriculture and
Agro-based Industry and The Implementation and Coordination Units (ICU) in the Prime Ministers
Department of Malaysia.

Innovative management and

appropriate technologies to
eradicate hardcore poverty

ii
Innovative management and appropriate technologies
to eradicate hardcore poverty

INTRODUCTION

The Government Transformation Programme (GTP) was introduced to improve the quality
of public sector delivery to achieve vision 2020. Accordingly, the seven National Key Result
Areas (NKRA) were created under the GTP initiative. One of the NKRA is to enhance
the living standards of low-income households led by the Ministry of Women, Family and
Community Development. Under the NKRA low-income households, there are 49 initiatives
that support 12 service strategies. One of these initiatives is the AZAM Tani Programme
entrusted to the Ministry of Agriculture and Agro-based Industry (MOA) as Project Champion
across the states in Peninsular Malaysia.
To assist the low-income household, the Government Transformation Programme
version 1.0 (GTP 1.0 : 2010 to 2012) was set to eradicate poverty by the end of December
2010 and reduce it to 2.8%. Statistics in 2009 showed that 190,000 poor and hardcore poor
families were enrolled in the eKasih Programme. The eKasih Programme is the electronic
listing of hardcore poor registered under the Prime Ministers Department of Malaysia. The
targeted number of families involved in the 1 AZAM Programme is 47,000 and the GTP
1.0 target was 27,000 families affected by a range of 1 AZAM Programme. For GTP 2.0
(2013 to 2015), a new target has been set to reduce the poor and hardcore poor from 3.8
% to 2.0%. The 1 AZAM Programme setting involved 20,000 participants and the remaining
96,000 participants will be assisted by other programmes such as education and 1 Malaysia
Peoples Aid.
Four initiatives in the implementation of the 1 AZAM Programme are AZAM Niaga,
AZAM Khidmat, AZAM Kerja and AZAM Tani. This programme is implemented by various
ministries, departments and agencies. AZAM is the synonym for AKHIRI ZAMAN MISKIN
(Ending of Poverty Age). The AZAM Tani is implemented under the Ministry of Agriculture
and Agro-based Industry (MOA) by its various departments and agencies. The AZAM Tani
Programme was selected by the MOA as the Champion Project to help the hardcore poor
households to increase their income through economic aid in the agriculture sector and
agro-based industries.

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Innovative management and appropriate technologies
to eradicate hardcore poverty

BACKGROUND

MARDI has been implementing the AZAM Tani Programme in several states to increase the
individual income of 1,730 households by 40%. The AZAM Tani Programme has become
one of the Key Performance Indicators (KPI) under the MOA scorecard since 2010. The
number of participants involved in the project from 2011 to 2014 is shown in Table 1 and
Figure 1.

Table 1 : Number of participants in different states involved in the AZAM Tani

Programme
STATE
Selangor
Perak
Kelantan
Terengganu
Pahang
Kedah
Melaka
Pulau Pinang
Johor
Total

YEAR
2011

2012

2013

850
850

30
240
90
100
460

80
150
50
50
50
40
420

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Innovative management and appropriate technologies
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Figure 1 : The number of households involved in the AZAM Tani Programme (2011 - 2013)

Objectives of the project are to:

i.

increase the income of the eKasih household through economic assistance

projects in agriculture and agricultural based industries,

ii.

increase the knowledge, skills and competencies of the eKasih household in

agriculture through self-reliance and technical training provided by MARDI and

iii.

assist in the removal of participants from the shackles of poverty which will be in
line with the governments aspiration to become a high-income developed nation
by 2020.

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Innovative management and appropriate technologies
to eradicate hardcore poverty

SELECTION OF HARDCORE POOR HOUSEHOLD

The hardcore poor are those earning less than the level of the poverty line income (PLI)
for food determined according to the current balance of dietary nutritional requirements of
a family released by the Economic Planning Unit (EPU), Prime Ministers Department of
Malaysia (2012). The hardcore poor of the country are listed in the eKasih Programme from
which the participants are selected (Pictures 1 and 2)

Pictures 1 and 2 : Hardcore poor households in Malaysia

Participants of the AZAM Tani Programme consist of:

i.

heads and members of hardcore poor households,

ii.

single mothers,

iii.

people with disabilities,

iv.

aborigines and

v.

vulnerable groups who were former drug addicts, HIV AIDS and ex-bandits.

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Innovative management and appropriate technologies
to eradicate hardcore poverty

The participants are screened for their potential in terms of their commitments, interests,
skills, suitability of the project sites and individual capabilities to carry out the economic
activities. The engagement of the officers in the screening process is crucial for the success
of the activities to be taken by the participants (Pictures 3 and 4).

Pictures 3 and 4 : Screening process by the officer

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Innovative management and appropriate technologies
to eradicate hardcore poverty

INNOVATION OF IMPLEMENTATION
This programme is the hallmark responsibility of the Malaysian Agricultural Research and
Development Institute (MARDI) scientists involving social motivation and technology utilisation
by the lowest strata of a society. In this programme, a number of innovations were applied in
the selection of project activities, structural supports, Standard Operating Procedure (SOP)
development, technical training, motivation and family financial management. Continuous
monitoring and personal coaching of the project activities are also the key elements of this
programme (Pictures 5 and 6). In this programme, the participants are given aid in-kind in
terms of tools, agriculture inputs and small equipments (Pictures 7 and 8). However, no
monetary aid is given to the participants.

Pictures 5 and 6 : Group assembly and continuous monitoring by the officer

Pictures 7 and 8 : Small equipments

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Innovative management and appropriate technologies
to eradicate hardcore poverty


The model shown in Figure 2 is strongly supported by excellent work culture that has
always been practiced by scientists of MARDI. A task force has been established to implement
and monitor the performance of the programme. A key component of this programme is
based on implementing the activities using appropriate technologies suggested by MARDI
scientists based on participants capabilities. Programme participants are also able to
choose activities easily and quickly according to the local environment and therefore be
able to generate income quickly (quick returns to investment) (Figure 3).

Figure 2 : Model of the project

In this model:
i.

Project activities selected must produce results quickly (Quick Return) between 3
and 6 months of implementation, provide good returns, produce products/services
that are marketable, viable and sustainable.

ii.

Implementation of the contract farming, mentor-mentee and anchor concepts are

recommended.

iii.

For individual project activity, priority should be given to selected participants.

Project selection should be based on the interests, capability and skills of the
participants.

iv.

For the project activity managed by the anchor, participants are passive recipients
of dividends selected from the non-productive hardcore poor consisting of single
parents, the disabled and the elderly.

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Innovative management and appropriate technologies
to eradicate hardcore poverty

Agrotourism
Fisheries

Crops

Agro-based
Business

Livestocks

Food Processing

Food & Beverages

Business

Agriculture
Services

Figure 3 : Project activities within the scope of AZAM Tani Programme

Figure 4 shows that 38% of the participants preferred choice for quick returns was the
category of processing agro-based products. Seventeen percent preferred agriculture
services which required a small capital while 9% preferred agro-based business.

Figure 4 : Main cluster of project implementation

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Innovative management and appropriate technologies
to eradicate hardcore poverty

INNOVATION with APPROPRIATE TECHNOLOGIES

Appropriate technologies used in the project activities refer to technologies that are
cheap, easy to learn, suitable for target groups, labour intensive, suitable for small scale,
environmentally friendly and easy to handle and maintain (Figure 5).

Figure 5 : Appropriate technologies

Picture 9 : Application of appropriate technologies in

processing agro-based products

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Innovative management and appropriate technologies
to eradicate hardcore poverty

Picture 10 : Application of appropriate technologies in crop planting

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Innovative management and appropriate technologies
to eradicate hardcore poverty

EFFECTIVENESS
The pie chart below shows the achievement of 54% of the participants who successfully
increased their incomes. The remaining participants required more training and motivation
to improve their potential (Figure 6).

Figure 6 : Achievement of the project innovation

Implementations of technology innovation and management showed that the percentage of

poverty decreased from 3.8% in 2009 to 1.7% in 2012.
The chart below (Figure 7) shows that 75% achieved an income above the poverty level in
2013.

Figure 7 : Achievement of the project in 2013

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Innovative management and appropriate technologies
to eradicate hardcore poverty

TRANSFERABLE LESSONS LEARNT

The approach of this programme through various methods ranging from a tendency for
participants to choose a project, capital, inputs other than infra, motivational, technical
training (physical and spiritual) and financial management has proven to be a process
innovation in poverty eradication projects and serves as a model to implement eradication
in other programmes (Pictures 11 and 12).

Picture 12 : Financial management training

Picture 11 : Inputs more than infra

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Innovative management and appropriate technologies
to eradicate hardcore poverty


The strategy described above has proven to be beneficial to the target groups and
can serve as a model for the civil service. Technology innovation towards the application
of appropriate technologies has proven to be successful in mitigating poverty as expected
by the National Key Result Areas (NKRA). Thus, the implementation of these projects has
shown a reduction in poverty in the hard-core poor from 3.8% (2009) to 1.7% (2012).

Knowledge and innovation are indicators and keywords to the transferable lessons
learnt to eradicate poverty in Malaysia. Experience of implementing the project has provided
some guidance in implementing projects involving the poor. The commitment of participants
been proven to be one of the most important factors to contribute to the success of the
economic activities of the project (Picture 13). The selection method is certainly not based
on the analysis of the potential of an area of ongoing efforts to earn income.

Picture 13 : Commitment of participants

MARDIs project has managed to increase the economic status of most of the participants
selected through an increase in revenue. Different approaches adopted by MARDI and
determined by the participants, development of a Standard Operating Procedure (SOP) for
the project by members of a committed task force, infrastructure cost savings and the use
of mature seeds have been effective in determining the success of the project. These will
provide guidance in the implementation of poverty eradication projects in future and inspire
other participants to be able to take advantage of the assistance given by the government
to reduce poverty.

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Innovative management and appropriate technologies
to eradicate hardcore poverty

Engaging rural labour for

high value-added economic
activities on unused
government lands

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Engaging Rural Labour For High Value-Added Economic
Activities On Unused

Malaysia has taken the bold step of using the Blue Ocean Strategy to transform the government
delivery of services to be more efficient through optimal use of national resources and to
reduce the gap that exists in various public and private organizations.

In contrast to the Red Ocean Strategy that enables an individual or an industry to
exploit the existing demands to the fullest, the Blue Ocean Strategy allows individuals or
industries to innovate and create new demands although there is no guarantee of success.
The Blue Ocean Strategy is uncontested market space, unlocking new demands and making
the competition irrelevant.

The Prime Minister of Malaysia, YAB Dato Sri Mohd Najib bin Tun Haji Abdul
Razak urged Malaysians to apply the elements of the Blue Ocean Strategy in the public
administration to improve its performance (Straits Times, 14 September 2012). Malaysia
is targeting economic growth that can be achieved by multiplication of resources through
various initiatives by the Blue Ocean Strategy. There are six key principles that should be
followed to ensure the success of the Blue Ocean Strategy:
1. Reconstruct market boundaries,
2. Focus on the big picture not the number,
3. Reach beyond existing demands,
4. Get the strategic sequence right,
5. Overcome key organizational hurdles and
6. Build execution into strategy.

The National Blue Ocean Strategy (NBOS) is a programme at the national level
which contributes to new ideas to change the thinking and perception and to translate
useful practices that benefit the public service and communities through the approach of
strategic logic called Value Innovation (VI) (Figure 1) in the government delivery systems.
Value Innovation (VI) is achieved through alignment of the whole government system (utility,
price and cost) activities that integrates both government sector functional and operational
activities by maximizing the usage of resources/facilities/assets and minimizing the silo
mindset.

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The success of the Blue Ocean
Strategy depends on the organizations
success in achieving the innovation
whose value can only be achieved when
the production cost can be reduced and
the buyers improved simultaneously. Cost
reduction is done by removing and trying to
reduce the factors that cause competition
while the buyers increase by adding and
creating new elements that have not been
offered in the market.

Figure 1 : Value innovation

In Malaysia, over 80 ministries and agencies are collaborating to formulate and
execute extraordinary cooperation through NBOS. The concept of the Blue Ocean Strategy
is currently being implemented in numerous agricultural projects in Malaysia. Under NBOS
3, Engaging Rural Labour for High Value-added Economic Activities on Unused Government
Land, the Ministry of Defence (MINDEF) and the Ministry of Agriculture and Agro-Based
Industry (MOA) collaborated to develop idle land for agricultural purposes using financial
support from AZAM TANI Programme under the Ministry of Women, Family and Community
Development.

As one of the agricultural expert under MOA, MARDI has been appointed as the leading
agency to implement and to ensure sustainability of the project to achieve targeted goals;
the land use and skill development among youth and pensioner. During project planning,
MARDI has encountered several issues such as poor soil condition, floods and lack of initial
development fund. However, with the ongoing cooperation between MARDI with over 10
agencies and organizations such as Department of Agriculture (DOA), National Agriculture
Training Council (NATC), Federal Agriculture Marketing Authority (FAMA), National Hydraulic
Research Institute of Malaysia (NAHRIM), Irrigation and Agricultural Drainage Division
[Bahagian Pengairan dan Saliran Pertanian (BPSP)], National Seed Association and several
other agency/company as listed in Table 1, all the issues raised have been addressed and
the unused land has been transformed to agricultural development area (Picture 1) with
rockmelon crop cultivated using a fertigation system.

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Table 1 : Inter-agency collaboration

AGENCY
MARDI
AZAM TANI
NATC, IP (DOA)
FAMA
MOA
MINDEF
Public Works Department (JKR)
NAHRIM / BPSP
Sepang District Council, Sepang District
and Land Offices
Melonaire Sdn. Bhd
National Seed Association

ROLES
Lead agency
Financial and Trainee
Trainee
Marketing
Project owner
Land
Farm roads
Water quality
Development and Project Planning
Anchor company
Reference for Melon varieties

This project is carried out by the Melonaire Sdn. Bhd., a company that act as an anchor
company to run the project provided that they agreed to train any interested parties with the
fertigation system adopted. This collaboration not only emphasizes business by the private
sector but also provide platform for trainings and technology transfer from the government
to the youth and pensioner.

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Picture 1: NBOS 3 has successfully

transform an idle land into a
productive land

With commitment from all parties involved in this project, 7 acres of unused
government land under MINDEF located at PT 188, Sepang was develop within 12 months.
The development involves preparation of the area by clearing the land and by installating
the greenhouse infrastructure and fertigation system. As the leading agency, MARDI plays
significant roles in technology transfer to both the industry and the communities to increase
the productivity of agricultural and agro-based industry. Therefore, MARDI has started the
selected practical and cost effective technologies (greenhouse and fertigation system)
and potential commodities such as rockmelon to achieve the targeted goals. The use of
greenhouse is the most effective method because the greenhouse facilities that are being
developed can be used for a long-term period (estimated 10 years).
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Rockmelon crop was first planted in February 2012 and the yield was harvested on
26 April 2012. Through close monitoring of the project implementation and hands-on training
at Test Bed, phase 1 of this project has managed to accomplish 10 crop cycles with a
production of 73.4 metric tonnes of rockmelon with an average yield of 10 - 12 metric tonnes
per cycle (Figure 2). Cost of production for every cycle is shown in Figure 3. This project has
managed to successfully train 17 youths as young agricultural entrepreneurs (agropreneurs)
where two of them have managed to have their own rockmelon farms with a monthly income
of RM5,000.

Figure 2 : Production of rockmelon for 4 cropping cycles

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Figure 3 : Cost production of rockmelon growth under rainshelter using fertigation system

including the young entrepreneurs to

venture into the agriculture sector. Key
objectives of this project have already been
achieved, which results in increasing food
production in the country, helping families
with low income and producing many young
agropreneurs. In addition, the project has
created opportunities for agro-tourism.
The success of this project is not
only measured by the production but also
by the numbers of engaging communities
trained with the technology for high valueadded economic activities to build selfreliance among participants to enhance
their competency. MARDI has decided to
engage with new participants/ agropreneurs
every 6 months or 15 agropreneurs each
year. This project has also successfully
enhanced
collaboration
among
the
government agencies by maximizing the
usage of resources/facilities and breaking
the silo in performing works.

The successful completion of Phase 1 has

led to Phase 2, that involves 5 active and
25 passive trained veterans from Malaysian
Armed Forces Veterans Affair Department.
The phase 2 project has started on January
2014 and the first harvest was done in March.
Implementation of this project
in a strategic area (near Kuala Lumpur
International Airport), has gained a lot of
attention from various interested parties

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Table 2 : Production NBOS 3, Sepang

Production 1
Season 1
1

Item
Preparation of planting medium

2
3
4
5
6
7

Nursery
Foliar fertilizer / Pesticides
Compound Fertilizer
Water
Electricity
Labour
TOTAL

July 2012
Amount ( RM )
1910.00
1381.50
221.53
5550.00
500.00
2000.00
7200.00
18763.03

Total Production
Total Sale
Total Cost
Net Profit/3 months
Income/month

10,366.77 kg
RM36,025.20
RM18,763.03
RM17,262.17
RM5,754.04

Production 2

December 2012

Season 2

1
2
3
4
5
6
7

Item
Preparation of planting medium
Nursery
Foliar fertilizer / Pesticides
Compound Fertilizer
Water
Electricity
Labour
TOTAL

Total Production
Total Sale
Total Cost
Net Profit/3 months
Income/month

Amount ( RM )
150.00
1180.00
221.53
5550.00
500.00
1952.90
7200.00
16754.43
10,042.00 kg
RM34,807.70
RM16,754.43
RM18,053.27
RM6,017.75
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Production 3
Season 3

May 2013

1
2
3
4
5
6
7

Amount ( RM )
540.00
1180.00
221.53
5550.00
500.00
1943.55
7200.00
17135.08

Item
Preparation of planting medium
Nursery
Foliar fertilizer / Pesticides
Compound Fertilizer
Water
Electricity
Labour
TOTAL

Total Production
Total Sale
Total Cost
Net Profit/3 months
Income/month

10,745kg
RM39,936.50
RM17,135.08
RM22,801.42
RM7,600.47

Production 4
Season 4

1
2
3
4
5
6
7

Item
Preparation of planting medium
Nursery
Foliar fertilizer / Pesticides
Compound Fertilizer
Water
Electricity
Labour
TOTAL

Total Production
Total Sale
Total Cost
Net Profit/3 months
Income/month

Amount ( RM )
150.00
1180.00
221.53
5550.00
500.00
3793.55
7200.00
18595.08
10,822.00kg
RM39,942.40
RM18,595.08
RM21,347.30
RM7,115.76

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