16-7-2023 (KUALA LUMPUR) In the bustling transit hub of Kuala Lumpur Sentral (KL Sentral), Amiruddin Ahmad Abdul Jalil starts his day by placing boxes of delectable food items like curry puffs, kueh lapis, and ketayap, a delightful pandan-flavored rolled crepe, into a vibrant red vending machine located a few meters away from a McDonald’s restaurant. This routine has become a daily ritual for the 28-year-old Kuala Lumpur resident over the past three months before he embarks on his regular job at a private firm.
The boxes of food, priced at RM2 (US$0.43) each, experience peak sales during the rush hour period when commuters flock to the transportation hub en route to work. As the day progresses, Amiruddin returns to KL Sentral to restock the vending machine with boxes of mixed rice and sausage buns, priced at RM5 and RM3 respectively.
Through this initiative known as the People’s Income Initiative (IPR), Amiruddin and his wife, who work together to prepare the food, earn an additional RM4,000 per month. The IPR, spearheaded by the Ministry of Economy’s economic planning unit, was launched in February with the aim of assisting the country’s underprivileged population in increasing their monthly income by at least RM2,000.
Under the 2023 budget, a substantial amount of RM750 million has been allocated for this program, which has garnered significant interest from individuals aspiring to improve their livelihoods amidst the government’s efforts to enhance financial independence among lower-income households in Malaysia.
GOVERNMENT-FUNDED VENDING MACHINE RENTALS
During the program’s launch in February, Economic Affairs Minister Rafizi Ramli likened the IPR initiative to a “fishing rod” that enables individuals to achieve financial autonomy. The initiative encompasses three main thrusts: the Food Entrepreneur Initiative (Insan), the Agro Entrepreneur Initiative (Intan), and the Services Operator Initiative (Ikhsan). Amiruddin is a participant in the Insan initiative, which offers food entrepreneurs self-service vending machines strategically placed in locations such as transportation hubs and hospitals nationwide.
Amiruddin revealed that he applied for the initiative online shortly after its launch. As part of the program, the government covers the monthly rental fees for the vending machines over a two-year period, with entrepreneurs retaining the profits from their sales. To ensure affordability for consumers, the food packs sold through the vending machines are capped at RM5 per box.
Amiruddin estimated that nearly 90% of the food is sold out daily, while the remaining portion is either donated to the homeless or consumed by himself and his family. Participants can conveniently monitor and track inventory and sales through a mobile application, allowing them to replenish the vending machines when stocks run low.
Initially challenging, Amiruddin and his wife have now adapted to their daily routine, dedicating two to three hours each day to food preparation. Amiruddin remarked, “Compared to direct cash aid, this program offers more continuity and sustainability. It benefits the community by enabling traders to earn more income while providing affordable meals to the public.” He currently sells approximately 100 boxes of food per day.
As of June, over 10,000 individuals have registered for the Insan program. With a target of 5,000 vending machines set to be operational by the end of the year, the government’s efforts to promote the financial well-being of lower-income groups in Malaysia continue to gain momentum.
TRADERS GRATEFUL FOR TIME SAVED WITH FAMILY
Nurul Fatimah Norani, an IPR participant assigned a vending machine at JB Sentral transportation hub, shared her positive experience with the initiative. The single mother of three has witnessed her income rise by more than 30% compared to her previous job as a cook in a factory, where she earned approximately RM3,000 per month. With the vending machine business, she now earns around RM4,000 monthly and made the decision to resign from her previous position to focus on her newfound entrepreneurial endeavor.
“This initiative is very good, especially for someone like me. Your income does depend on how hardworking you are,” Nurul Fatimah told CNA. Her vending machine offers breakfast meals such as nasi lemak and fried noodles in the morning, followed by boxes of mixed rice for the lunchtime crowd. In the evenings, she sells finger foods like nuggets and sausages.
Monitoring the vending machine’s food supply through a mobile application, Nurul Fatimah ensures that stocks are replenished promptly when necessary. Thanks to this initiative, she now enjoys more quality time with her children, as food preparation takes around two hours each day. In her previous factory job, she did not have any days off.
Expressing her gratitude, Nurul Fatimah emphasized her independence from government aid, stating, “I don’t want to depend on the government or anyone for handouts.” Likewise, 36-year-old Normaladiana Mohd Yazal attested to the initiative’s positive impact on her life, earning an additional RM2,000 to RM3,000 monthly. With her vending machine situated at KL Sentral, she typically sells a variety of items, including banana cakes, nasi lemak, and sausages with eggs and beans.
Normaladiana, a mother of two residing in Pantai Dalam, Kuala Lumpur, praised the convenience of the initiative, as she is not required to be physically present at KL Sentral unless issues arise with the machine. She remarked, “It isn’t difficult. We just place our food there and wait for it to be sold.” In addition to her vending machine business, she also provides catering services from home upon request.
“This program should be expanded to benefit more lower-income individuals like us,” Normaladiana asserted.
EFFORTS TO ASSIST THE POOR MUST EVOLVE: ECONOMIC AFFAIRS MINISTER
During a recent political rally in Negeri Sembilan, Minister of Economic Affairs Rafizi Ramli addressed the criticism received by the vending machine initiative from the opposition. He acknowledged the evolving nature of efforts to support the underprivileged, highlighting the changing landscape from the 1970s and 1980s when the government built physical spaces and provided stalls for people to rent.
According to Mr. Rafizi, the main obstacles in the present day are the high rental costs and limited space for stalls. He explained, “That is why we figured that there wasn’t a need for any building. We only needed a place to sell as long as that place is convenient for people. Importantly, we wanted to make sure they didn’t have to hire anyone, pay for utilities, and wait there the whole day. Economically, the best way was to give them a vending machine.”
Mr. Rafizi highlighted that program participants earn a minimum of RM150 to RM200 per day, with some even earning as much as RM600 to RM800 daily.
