PRG-11P3 LivelihoodsPhase 1-2-3

Household Savings and Asset Accumulation Scheme

Low-income households hold negligible financial buffers, so a single shock returns the household to crisis and no asset base accumulates

💡 Suggest an improvement

Programme Logic

Problem

Low-income households hold negligible financial buffers, so a single shock returns the household to crisis and no asset base accumulates

Structural Cause

Income volatility and the absence of any matched-savings instrument reaching this population

Intervention

Matched savings, structured on the MIB 2017 design of a seed fund providing matching booster units in a qualifying unit-trust or savings product, with matching ratio varying by income band and a minimum lock-in

Who & How

Target Group

Low-income Indian households with capacity to save

Eligibility

Household income in the bottom 40%; enrolment in a qualifying savings product; matching capped per household per year

Deliverables

Outputs

Approximately 15,000 participating households in Phase 1 rising to 50,000 by Phase 3; matched contributions credited; participation and balances reported annually

Outcomes

Increase in the proportion of participating households holding a defined minimum financial buffer

Key Performance Indicators

KPI-11

Household savings buffer

unmeasured historic target

Proportion of participating households holding a defined minimum financial buffer

Baseline

MIB 2017 set a target that at least 50% of registered poor households demonstrate increased savings within five years; no outturn was ever published

Year 2

Approximately 15,000 households enrolled; product operational; baseline balances recorded

Year 4

Approximately 35,000 households enrolled; at least 50% of households enrolled for 24 months or more showing increased savings

Year 6

Approximately 50,000 households enrolled; at least 60% of households enrolled for 24 months or more holding the defined minimum buffer

Owner: Ministry of Finance

Verification: Product administrator records; participation and balance reporting

Note: Instrument design requires MOF approval and, if PNB is the vehicle, PNB's own commercial agreement. Confidence class is Provisional.

Costing (Central Scenario)

Provisionalconfidence for this programme’s costing

Six-Year Total

RM 200.0m

New Funding

RM 160.0m

Existing

RM 0.0m

Reallocated

RM 40.0m

Where these figures come from

Why this figure?· RM 200.0m over 6 yearsProvisional

Method: Matched-savings model: participating households x annual matching cap x years
Key inputs: RM 1,000 — Matching capped at RM1,000 per household per year, with the matching ratio varying by income band
Population: Low-income Indian households with savings capacity (15,000 households in Phase 1, 35,000 in Phase 2, 50,000 in Phase 3)
Benchmark: Structured on the MIB 2017 design (pp.41 and 112) of a seed fund providing matching booster units in a qualifying unit-trust or savings product. This is a NEW instrument modelled on an MIB design that was never implemented, not the revival of a lapsed scheme. Requires MOF design approval and, if PNB is the vehicle, PNB's own commercial agreement.
Funding split: existing 0.00 = no existing instrument reaches this population, so nothing can be netted off; reallocated 0.20 = MITRA savings and welfare grants; new 0.80 = the matching contribution. GATING on VAL-19 (PNB participation is a commercial decision Cabinet cannot direct).
Source: Internal estimate — no external source cited.
Status: Planning assumption pending validation· pending validation (VAL-19)
Note: Structured on the MIB 2017 design (pp.41 and 112) of a seed fund providing matching booster units in a qualifying unit-trust or savings product. This is a NEW instrument modelled on an MIB design that was never implemented, not the revival of a lapsed scheme. Requires MOF design approval and, if PNB

View full costing scenarios →

Delivery & Accountability

Lead Ministry

Ministry of Finance

Accounting Officer

Secretary-General Treasury

Supporting Agencies

Permodalan Nasional Berhad (subject to its own commercial decision); Bank Negara Malaysia; AIM; Department of Social Welfare

Mandate Basis

Savings instruments and any matched-contribution scheme require Ministry of Finance design approval

Risks & Safeguards

RSK-10

programme_design

Major→ Medium

The matched-savings instrument (PRG-11) cannot be established because PNB declines to participate or MOF does not approve the design

Safeguard

PNB participation is sought, not assumed; the instrument is product-agnostic and can be delivered through an alternative qualifying savings product; the programme is classed Provisional and its RM200m central cost is explicitly at risk; a decision point is set at end of Year 1

RSK-11

leakage

Major→ Low

Grants and subsidies are diverted, repeating the governance failures that have damaged confidence in community programmes

Safeguard

Payments made to institutions and verified accounts rather than in cash where possible; published recipient lists for all grants above a threshold; annual Auditor-General audit tabled in Parliament; open competitive procurement; immediate referral of irregularities to the MACC; the delivery secretariat holds no programme funds

RSK-13

exclusion

Critical→ Medium

Needs-based eligibility using documented household income excludes informal and undocumented households, who are the most vulnerable

Safeguard

Alternative means-assessment pathways for households without formal income documentation, including community verification and social-welfare officer assessment; documentation status is explicitly NOT a barrier to PRG-01 or PRG-02 participation

RSK-16

evidence

Critical→ Medium

The plan's own baselines rest on 2014-vintage data and provisional derivations, and re-estimation materially changes programme scale

Safeguard

All 2014-vintage figures are labelled by year and are not used for present-day statements; DOSM re-estimation of the Indian low-income household count and child cohort are gating validation items (VAL-02, VAL-09); the costing model rebuilds from assumptions by script, so a corrected population reprices the portfolio deterministically