KUALA LUMPUR: A United Nations Children's Fund (Unicef) study has found that many of the city's low-income households prefer higher wages to fuel subsidies to help mitigate higher living costs.
According to the latest edition of the Living on the Edge study covering 755 low-income households across 16 public housing projects in KL, only seven per cent preferred fuel subsidies.
Higher wages were listed as the "most preferred" intervention to help cope with living costs, along with cash assistance initiatives and price controls on essential food items.
"The provision of direct cash aid offers immediate relief, providing families with the flexibility to allocate resources according to their most pressing needs, while price controls on essential food commodities serve to buffer against inflationary pressures, ensuring access to essential items," said the report.
The study is a continuation of the Families on the Edge project by Unicef on the impact of the pandemic on women and children in low-income families in KL.
The most recent survey was conducted between October and November last year.
"These perspectives and inputs from the households underscore the imperative for policymakers to heed the preferences and priorities of households in crafting effective interventions to tackle the cost-of-living crisis.
"By aligning policy measures with the expressed needs and preferences of the communities, policymakers can ensure that interventions yield meaningful and sustainable outcomes for those most impacted by economic hardship."
Meanwhile, the study also found that most heads of households were employed and that the number of self-employed people has declined from one in four to one in five between March and October 2023.
"(This) indicates a shift towards formal employment opportunities."
However, it noted that 40 per cent of workers do not have any employment-based social protection, while 92 per cent of those who were self-employed lack an adequate safety net against economic shocks.
Still, the study found that a significant proportion of households, some 72 per cent, received various forms of social assistance, with the Sumbangan Tunai Rahmah (STR) topping the list.
Some 68 per cent of households surveyed benefited from the STR, while 23 per cent received zakat payments.
Unicef said however there was room for improvement as it found that one in three households earning below RM5,000 a month did not receive STR, and this highlighted gaps in outreach and accessibility.