The Capabilities of the Rural Poor in Sabah and Kelantan, Malaysia: Evaluating a Poverty Eradication Program and Its Impact on Well-Being

Global poverty reduction efforts have long relied on income-based interventions such as cash transfers and microfinance. While these approaches have yielded positive short-term outcomes, they often fail to address deeper structural barriers that hinder long-term well-being. In Malaysia, the income enhancement program was introduced to assist the rural poor by providing material resources. However, its effectiveness remains questionable, as many participants struggle with unstable occupations, environmental uncertainties such as climate-related risk, and limited opportunities for sustained economic growth. This study examines the income enhancement program in Sabah and Kelantan through the lens of the capability approach. It emphasizes expanding individuals’ choices and freedoms by focusing on conversion factors rather than measuring poverty through income increments. Using semi-structured in-depth interviews, a total of 19 program recipients were selected through purposive sampling in Sabah and Kelantan. The data were analyzed using thematic analysis, identifying three key themes: empowerment through resources, capability expansion, and economic sustainability. The findings highlight that while resource provisions help ease immediate financial constraints, the program’s standardized implementation overlooks key factors such as occupational demands, skill gaps, and long-term economic sustainability. A more context-sensitive approach is needed—one that tailors support to the specific needs of different communities with different occupations. By integrating capability-based strategies, poverty alleviation programs can move beyond short-term relief and foster genuine, sustainable improvements in the well-being of the rural poor.