KUALA LUMPUR, Aug 19 (Bernama) -- Bursa Malaysia ended lower on Wednesday, as elevated United States (US) Treasury yields and weakness in technology stocks weighed on investor sentiment, an analyst said. However, gains in healthcare and telecommunications stocks provided some support to the broader local market. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 2.04 points, or 0.12 per cent, to 1,731.32 compared with Tuesday’s close of 1,733.36. The benchmark index opened 1.39 points weaker at 1,731.97, and fluctuated between 1,725.95 and 1,733.44 throughout the day. On the broader market, losers outpaced gainers 701 to 478, while 563 counters were unchanged, 1,131 untraded and 16 suspended. Turnover shrank to 3.31 billion units valued at RM2.92 billion from 3.74 billion units valued at RM2.91 billion on Tuesday.
President-elect Prabowo Subianto is banking on his free school meal program to unlock Indonesia’s growth potential, taking cues from large Asian countries that have implemented similar initiatives with varying degrees of success.
Key Highlights:
Program Details:
- Prabowo’s campaign includes providing 15,000 rupiah (US$1 or RM4.28) worth of free lunches to schoolchildren.
- The goal is to lower stunting rates and improve academic performance.
- He has studied similar programs in China and India.
Inspiration from China and India:
- India’s school feeding program showed an 18% improvement in reading scores and a 9% increase in math scores after five years.
- China’s four yuan (RM2.56) lunch subsidy helped improve children’s average heights and weights in poorer areas.
Potential Benefits:
- The program aims to boost productivity, crucial for Indonesia to achieve high-income status before its population ages.
- Free lunches can attract more children, especially girls, to school, enhancing learning and health.
Economic Impact:
- The World Food Programme estimates every US$1 invested in school meals yields up to US$9 in economic returns due to improved health, education, and productivity.
Challenges and Risks:
- Ensuring food safety is a significant challenge, highlighted by incidents of expired milk in China and pesticide-contaminated meals in India.
- There are concerns about the program's continuity and political commitment, as seen with a previous WFP school feeding project in Indonesia.
Political and Financial Considerations:
- Prabowo’s initial plan for a US$28 billion budget has been scaled down to US$4.4 billion to avoid budget strain.
- Critics argue that improving education should be the focus, rather than providing free lunches.
Long-term Impact on Malnutrition:
- Some experts question the program’s effectiveness in addressing malnutrition, emphasizing the importance of nutrition during the first 1,000 days of life.
- In 2022, 22% of Indonesian children under five were stunted, with a target to reduce this to 14% in 2023.
Case Study: Tangerang, Indonesia
In Tangerang, Niken Dyah Permata Sari, a 14-year-old student, benefits from the pilot program, saving 7,000 rupiah by receiving free lunches. The initiative not only helps students save money but also attracts more children to school, fostering better health and learning.
Expert Opinions:
- Manoj Kumar, Nutrition International’s Asia Regional Director: Stressed the importance of well-nourished children for effective learning and breaking the cycle of malnutrition.
- Esther Sri Astuti, Institute for Development of Economics and Finance: Advocates for a focus on education improvement over free lunch programs for long-term benefits.
Prabowo’s ambitious plan aims to leverage school meals as a catalyst for broader economic growth, drawing lessons from international examples while addressing local challenges.
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