1.

0 INTRODUCTION

Lembaga Kemajuan Kelantan Selatan (KESEDAR) is an agency below Ministry of Rural

Development (KPLB). KESEDAR is a Regional Development Institution that was created on
May 1, 1978, under the Kelantan Development Act South 1978. (Act 203). On March 5,
1978, the late Tun Hussein Onn, Malaysia's previous Third Prime Minister, officiated at the
official launch at Kampung Batu Gajah, Tanah Merah, Kelantan (KESEDAR, 2022).
KESEDAR was established with the goal of balancing the population makeup of South and
North Kelantan in order to reorganise society and eliminate poverty. South Kelantan is a
mountainous region that encompasses about half of the state and has a gradient of more than
25 degrees, while the remaining 10% has a gradient of less than 15 degrees. However, the
amount of acreage it owns can only be harnessed around Only 20% for the purpose of sector
development in agriculture. The state of Kelantan is among the poorest state in Malaysia in
the early 1980s. If seen from the rate of In -Depth Gross State (GDP), it recorded a low value
compared to other states in the Malaysia. For example, around RM1,740.00 and only 46% of
the national percentage of RM3,758.00. The South Kelantan area in the context of the state of
Kelantan is that the poorest among the poor because the average income of the population is
below the level poverty of RM259 per month (KESEDAR, 2022). This matter is closely
related to employment which is almost 80% the population is engaged in the agricultural
sector.

The Federal government established KESEDAR in response to development in the

South Kelantan region, in order to ensure that development is balanced across the country.
After the Board Pembangunan Tenggara Pahang (DARA-1971), Lembaga Kemajuan Pusat
Terengganu, Lembaga Kemajuan Johor Tenggara (KEJORA 1972), and KESEDAR is the
fourth Regional Development Authority (KETENGAH-1973). Under the Capital Core
Humans, there are various programs have been implemented in improving the quality of life
among the population in KESEDAR Region. Nevertheless, there are constraints from
population viewed from the aspect of ability to reach the level of human capital at once
making it a challenge that needs to get appropriate action. In addition, it offers opportunities
low employment and low income levels are the cause of the quality of life of the population
in the KESEDAR Region affected. Furthermore, the basic infrastructure facilities are
imperfect and inadequate for meeting the needs of the population has created an unbalanced
disparity gap between rural and urban residents. Thus, this study focuses on the stage of
development socioeconomics in the KESEDAR region that can be enhanced by creating as
well implement comprehensively by creating more job opportunities that appropriate as well
as a commensurate income rate. In addition, the provision and offer of income and attractive
employment opportunities and provide adequate basic facilities for meet the basic needs of
the rural population.

Pursuant to Section 4 (1) of Act 203/78, KESEDAR is given the responsibility to

develop, encourage, assist and work in addition to overseeing and coordinating the
implementation of development economic and social settlement of the settler community
covering four main areas such as residence, industry, trade and agriculture. The Agricultural
Development Division has been established replacing the Land Development Planning
Division (RKT) effective in 2006 (Hussin., Abdullah., & Mat., 2012). Functions and the
assigned role has been expanded i.e. in addition to the development of RKT, other
responsibilities including providing technical services for agricultural activities carried out in
the area KESEDAR. The technical services provided to the settlers are like redevelopment
settler farms, produce a sufficient number of seedlings and maintain farms up to the stage of
yield production. The Land Development Plan program aims to improve the quality of life
and income settlers in all Land Development Plans (RKT) under the management of
KESEDAR through provision of agricultural roads, village roads, public facilities and clean
water supply. Section KESEDAR management has been divided into five main units based
on their functions and roles different. Among the units such as
Administration/Finance/Accounts Unit, Affairs Unit Settlers/Infra, Paloh Zone Plantation
Unit, Nenggiri Zone Plantation Unit, and Agro/Anak Unit Company.

2.0 Identify and analyse the issues and problem faced by communities in the regions
involved.

KESEDAR seeks to balance the composition of the population in the south and the northern
region of Kelantan, in addition to eradicating poverty and restructuring the society. One of
the reason issues about KESEDAR the agriculture sector is not stable in term of the income
of the settlers because the prices of commodities such as palm oil and rubber are always
volatile Fauzi Hussin & Hussin Abdullah (2012). Palm oil output is seasonal, and other
factors like the age care of the trees have an impact in the settlers monthly revenue.
Furthermore, there are exogenous issues such as market demand for palm oil, which reduce
the settlers revenue. Palm oil competes with other vegetable oils, such as soya oil, and natural
rubber competed with synthetic rubber when it first entered the market. The settlers suffer the
most as a result of this situation because their livelihood is threatened. Many settlers leased
their land to foreigners during the economic crisis. According to FELDA analysis, persons
who leased their land very poor living conditions.

Lower socio-economic problem, as according to Abdullah (1984), can be considered a

social disease and the principal enemy of national development plans. The government has
devised a mindset known as the New Economic Policy in term of poverty alleviation. The
main aims of the project are reduce poverty by providing society. He argues there should be
no poverty in the future. Besides, according to Smith (1963), low socio-economic status, is
defined as the situation in which basic needs such as food, clothing and shelter aren’t really
met. The effect of lack socioeconomic status is not purely an economic issue. As a result,
numerous scholars have included non-economic factors to the definition of low
socioeconomic status. The poor can be characterized by their approach that is not sufficient to
meet the basic requirements to maintain physical efficiency, as described by the biological
method, that is a concept of “enough to survive”.

When it comes to the unstable rubber and oil palm commodity prices, related to oil palm
prices and dropping rubber prices have a big impact on KESEDAR settlers, who are mostly
rubber tappers and oil palm planters. According to a poll, more than 57% of KESEDAR
settlers are still living in poverty. Given the fact that they must be over 20 years old are still
under the KESEDAR plan for nearly 30 years, their socioeconomic status keeps rising. The
second generation of their children, who are no longer interested in working together on the
farm in KESEDAR, is one of the most significant challenges. They enjoy working in city,
whether it’s in industry, the public or private sector. This also results in a manpower crisis.
As a result, their parents health deteriorated, and they are getting older.

Farmers, according to Ayob (1994), were the poorest in society, particulary in developing
countries. He said that, despite investments to the agricultural sector since independence,
poverty among small farmers could not be completely eliminated. The size of the land,
uneconomical crops, low technology, the system of land tenancy, and little opportunities to
boost revenue all related to poverty in rural areas. Poverty still affected poor countries in
1990, an estimated one million people effected, in south Africa, Sub-Saharan and Latin
America. The policies and systems used to overcome poverty in developing countries
differed depending on their stage of development. Growth was focused in the 1950s and
1960s in term of reducing poverty and ensure living standard.
 According to Arshad (2004), when comparing the agricultural and other industries, the
agriculture sector’s pay, incentives and work environment were not highly competitive. This
impeded the government’s effort to recruit young people into the farming sector. Village
young people, overall choose to work in factories rather than on farms. The fact that the large
part of the country’s workforce is better educated further complicates the situation, as
university graduates need to work jobs that are more suitable to their qualifications.
Furthermore, around 6,690 hectares of land have not been replanted. The effect of not
replanting are that settlers lose their source of income, there are no job chances for the next
generation, crime and social issues are on the rise, and local economic activities are unable to
advance (Fauzi, Hussin, & Hadijah, 2012). There are areas around KESEDAR’s plan land
that have not been developed but have been illegally encroached at by settlers or the second
generation of settlers who have illegally developed oil palm and rubber. There is now no
action that can be taken to prevent them from illegal introducing farms or build house due to
the legal problems.

3.0 EFFECTS ON THE LOCAL COMMUNITY IF KESEDAR AGENCIES FAIL TO

PERFORM THEIR ROLE.

The Kelantan Selantan Development Authority (KESEDAR) is a government agency whose

role is to develop the planned land area. Most of the plan lands developed are like rubber and
oil palm plantation plans. KESEDAR also plays a role in improving the socio -economic
status of the community. However, there is speculation that the adverse effects that will occur
to the community if the KESEDAR agency fails to perform their role.

This can be seen when there is an increase in the unemployment rate in the community.
This is said so because the role of KESEDAR is also to eradicate poverty. Thus, the failure of
this agency to run the land plan has resulted in the community still being at a low level of
poverty. Apart from that, unemployment will also be on the rise. This clearly shows that the
KESEDAR agency carried out to eradicate poverty by developing land plans has given false
hope to the community to change their lives for the better.

In addition, the failure in terms of planning made can also be due to the occurrence of
disasters and the spread of epidemics. For example, the outbreak of Covid 19 has made it
impossible to carry out various activities, including agricultural activities carried out by the
KESEDAR agency. This has led to many workers being laid off. With this, it can lead to an
increase in the number of unemployed in the country.
Rubber irrigation activities are also seen to be greatly affected during the monsoon season,
which is the occurrence of prolonged and too frequent rains. This has caused many rubber
planters to be unable to tap and it will affect their income. In addition, volatile and lower
rubber prices have caused many rubber planters to withdraw from such activities. As a result,
most of them have become unemployed. This clearly shows that the failure of KESEDAR
agencies in helping the community can lead to an increase in the unemployment rate in
Malaysia.

The failure of the KESEDAR agency is also seen when the absence of backers in terms of the
younger generation as a workforce. This is said so because, the younger generation prefers to
work in urban areas. In fact, it is also seen when it uses more foreign labor which has led to
labor competition between local communities. This also caused the unemployment rate to
rise.

In addition, the effect that will occur if the KESEDAR agency fails to perform all its roles is
that it can cause economic activities cannot grow well. This is said so because the failure of
this agency will cause the agricultural activities carried out through the implementation of
land planning will cease. Therefore, oil palm and rubber cultivation activities cannot be
continued. There are also various other reasons that can cause economic activity to not
continue.

According to Fauzi Hussin, Hussin Abdullah & Siti Hadijah Che. (2012), factors from the
declining demand for palm oil and rubber markets are also a cause of failure. This causes
economic activities cannot be carried out properly due to lack of demand. This has also
affected the daily expenses of the community. This is also said to be due to competition for
types of goods such as oil. There are various types of oils have caused palm oil there is
competition. This caused the price of palm oil to decline due to the low demand for palm oil.
This is also a cause of failure.

The production of other goods that have led to competition has also led to a decline in
livelihoods. For example, cheaper production of synthetic rubber has resulted in natural
rubber being less popular with buyers. Fauzi Hussin, Hussin Abdullah & Siti Hadijah Che.
(2012) also stated that this competition has led to a decline in economic activity resulting in
the production of raw materials had to be reduced. It has also squeezed the lives of the people
and caused many of them to lose their source of income.
Lack of allocation for oil palm and rubber replanting is also said to be the cause of the failure.
This also causes economic activity to not develop well. It can be seen when there are
financial difficulties for the settlers to develop these agricultural activities. This is because,
lack of finance for the use of machinery, fertilizer and so on. As a result, it has implications
for the residents as replanting cannot be done so that the settlers have lost their source of
income.

Volatile prices have also led to stagnant economic activity. This can be seen when there is a
decline in the price of oil palm and rubber prices which has had a significant impact. Rising
prices have caused buyers to change direction to other cheaper items. It also caused
production to be reduced so that some of the plan land had to be stopped temporarily. In fact,
many of the workforce has been laid off because it is not needed.

The failure of the role of the KESEDAR agency has also led to shortages in food stocks.
This can be seen when the failure of KESEDAR has caused the developed land plan to be
stopped. Therefore, it will affect the food stocks in the country. This is said because, the
closure of agricultural activities from the implementation of land plans carried out by the
KESEDAR agency has caused the production of raw materials has decreased. For example,
oil palm cultivation that has been stopped will cause a shortage of stocks in the supply of
cooking oil and so on. This has forced the government to import oil from abroad to meet the
growing needs of society. Therefore, the failure of the KESEDAR agency has a very negative
impact on the community and the country.

The failure in implementing this land plan is also said to be due to the age factor of the crop
which has aged, and it has reduced the production rate. This has reduced production output
and caused the community's income to decrease. The uncultivated area of arable land is also a
major aspect of the shortage of food stocks. This is said because, the growing population has
caused the need for food stocks to increase. Therefore, the KESEDAR agency should take a
role to increase the area of agricultural land to meet the needs of the people.

The issue of the absence of competent and experienced contractors in farm maintenance also
leads to big problems as most of the settlers are no longer able to work as most of them have
aged. This caused the land area of this plan to be stopped and less developed and failed. In
fact, the younger generation is also seen to prefer to work in the city resulting in a shortage of
manpower to develop agricultural areas. This causes agricultural land cannot be developed
and causes production to be slower.
The failure of this agency also caused the allocation of funds for food supply to decrease.
These funds are much needed for poultry farming enterprises. In the absence of this
provision, the supply of raw chicken has become increasingly scarce. This also led to a
decrease in food stocks. The failure of the KESEDAR agency can also be seen when the
outbreak of covid 19 has made it difficult for the agency to obtain allocations to cover these
economic activities. As such, it has a very detrimental effect. In fact, it has caused chicken
prices to have risen sharply due to the absence of sufficient chicken stocks. This clearly
shows that the failure of the KESEDAR agency has affected the socio -economy of the
community.

Next, the impact on the local community if KESEDAR agencies fail to perform their role will
also lead to a decrease in labour income. This is because when KESEDAR is not concerned
in providing basic facilities to the community of the area then the settlers will experience
many problems in developing their farm production and agricultural land. For example, not
caring in providing technical services for agricultural activities carried out in KESEDAR area
such as no technical services provided to settlers in redeveloping settlers' farms, insufficient
production of saplings and not carrying out farm maintenance up to the production
stage. .Thus, there will be a decrease in the income of the settlers or the community in the
KESEDAR area. Besides that, the absence of the provision of agricultural roads and lack of
clean water supply, will affect the output of farmers and farmers who work on their farms and
agricultural land.

At the same time, the agricultural sector is not a stable sector in terms of settlers' income due
to problems such as the constantly fluctuating price of oil palm and rubber commodities,
seasonal oil palm production as well as other factors such as tree age, care and others that
affect the monthly income of the settlers. Apart from that, there are also external factors such
as the demand for the palm oil market which causes the settlers' income to decrease. Palm oil
has competed with other vegetable oils, namely soy oil while natural rubber has to compete
with artificial rubber when artificial rubber is created in the market. This situation was greatly
detrimental to the settlers as their livelihoods were reduced. If there is no action from
KESEDAR agencies in solving this problem, then the settlers will experience a decrease in
their income although in general, most of the income settlers' income passes the hardcore
poverty level but their income level is still considered low.
Lastly, the impact of the failure of the KESEDAR agency's role on the local community will
lead to a decrease in the quality of life. The context of this decrease in quality of life is seen
in terms of public facilities and technological exposure. According to Hayward (1979) the
quality of life has to do with political aspects, attitudes, actions, stability, optimism in
expectations of future life, satisfaction with government, power and political engagement.
Based on the Malaysian Quality of Life Report, it defines quality of life as a change that
occurs in the social system from a situation that is considered less than satisfactory to a better
and more satisfactory condition. In this context, the quality of life has continuity with a
healthy lifestyle, self-improvement, access and freedom of knowledge of living conditions
that exceed the basic needs of the individual as well as meeting the psychological demands of
achieving the level of social well-being (Economic Planning Unit, 1999). Moreover, quality
of life refers to the level of development of one's priorities, social development and physical
development that supports the experience of the individual and society functioning
harmoniously to perform daily tasks (Rokicka, 2014; Pacione, 2003).

The quality of life of the local community in KESEDAR area will be affected if KESEDAR
agency fails to provide good public facilities. For example, less emphasis on the supply of tap
water, electricity supply and sanitation supply. The local community in the area needs a clean
supply of water pipes and good electricity supply for daily use. To assess the level of
achievement of quality of life is subjective and it can only be measured through the level of
satisfaction of the individual and the society involved. Therefore, the comfort and satisfaction
of the community is very important to be emphasized by KESEDAR agencies. In addition,
when KESEDAR agency does not provide proper allocation and assistance to the local
community, the settlers or the community in the area also experience problems in terms of
facilities. For example, the issue of insufficient allocation for the purpose of replanting oil
palm and rubber. The allocation is only sufficient for replanting an area of 3,994 hectares or
37.4 percent of the total area that should have been replanted (Hussin, 2012). The farms were
not developed with good practices resulting in lower yields received by the settlers compared
to private farms such as Sime Darby, IOI and others.

In the meantime, traditional agricultural activities require a new paradigma shift to a more
comprehensive method. Reforms in the agricultural sector were able to increase the quantity
of production of agricultural products. In line with the Industrial Revolution 4.0, the use of
technology needs to be intensified holistically to help farmers increase their production and
increase their income. Furthermore, with the use of IR 4.0 technology in the agricultural
sector, it is able to reduce other unrelated management costs (Lazim et al., 2020). However,
the failure of KESEDAR agencies in carrying out their role will result in the quality of life of
rural communities in KESEDAR region not being improved to a better level. The lack of
exposure and improvement of the latest modern technology to the settlers in KESEDAR area
will make the quality of life of the community undeveloped or not develop better.

4.0 SUGGESTION TO HELP ALLEVIATE THE PROBLEM FACED BY

COMMUNITIES IN THE REGIONS INVOLVED

4.1 Encourage more Small and Medium-sized Enterprises (SMEs)

More Small and Medium Enterprises can alleviate the difficulties identified by the writers in
this study (SMEs). Given the many changes in the economy since 2005, such as price
inflation, structural changes, and changes in business trends, a review of the SME definition
was done in 2013, and a new definition was agreed at the 14th NSDC Meeting in July 2013.
In a word, there are two elements to the definition: manufacturing and services, as well as
other industries. Manufacturing SMEs have annual sales of less than RM50 million and fewer
than 200 full-time employees, whilst services and other sectors have annual sales of less than
RM20 million and fewer than 75 full-time employees. SMECORP (2015). Small and
medium-sized enterprises (SMEs) are one of the solutions that must be applied to address the
problem since SMEs can aid in the alleviation of poverty in rural regions, particularly in
Kampung Batu Gajah, Tanah Merah, Kelantan. Food and beverage industry, services, health
and beauty, fashion, accessories and crafts, home furnishings, and agrobusiness are some of
the SME activities that can be undertaken in the area. The sophistication of technology, such
as the internet, has made this SME operation easier. For example, on June 3, 2022, PEDi
Batu Gajah took part in a live session with En. Khuzairy, a Shope instructor, about Shopee
Trainer series II. This workshop is a follow-up to a class held in May of last year. The class
lasts an hour and is a continuation of Shopee's fundamental company start-up guide class.
Furthermore, online classes will train businesses about product marketing on the Shopee site
and will develop entrepreneurs who will use Shopee as a product marketing platform. One of
the benefits of the activity is that it might produce entrepreneurs who are up to date on
technical advances and are encouraged to conduct business online. Entrepreneurs may
undoubtedly make the most of this relationship to improve product advertising as well as
revenue from the business conducted. Entrepreneurs may undoubtedly make the most of this
relationship to improve product advertising as well as revenue from the business conducted.
This condition enhances their growth as a small business owner and, as a result, indirectly
aids in the improvement of the village's economy.

Apart from that, this sort of SME business is easier to manage since it takes less cash,
and there are various agencies that provide capital production support, such as Amanah
Ikhtiar Malaysia, Malis Amanah Rakyat (MARA), Tabung Ekonomi Kumpulan Usaha Niaga
(TEKUN), and so on. As a result, this SME must be established in the hamlet to address the
issue of economic poverty. Poverty in Kampung Batu Gajah, Tanah Merah, Kelantan, for
example, can be alleviated if the rural community uses SME operations as an economic
resource. This is due to the fact that economic implementation is critical in the development
of a region. A stable economy aids in the development of rural areas as well as the alleviation
of rural poverty. He emphasised that this idea should be executed since ending rural poverty
is critical to a country's development. If more SMEs are born in underdeveloped countries,
the country's economic income will rise, and poverty will be alleviated more effectively
indirectly.

4.2 Provide awareness to the community about the quality of life so that they strive to
improve quality of life

Raising community awareness of a greater and better quality of life is also a good way to deal
with challenges that arise. The community, which includes the Economic Planning unit,
needs to be made aware of this quality of life. Society's quality of life The only way to gauge
a country's success is to look at the people's quality of life, which is constantly improving. In
Malaysia, we consider that people have a right to benefit from development, and it is the
government's obligation to provide an environment that promotes socio-economic growth. In
this regard, the country's primary strategies, as codified in the New Economic Policy, 1970-
1990, and the National Development Policy, 1991-2000, as well as Vision 2020, have
concentrated on human development and, as a result, provide a higher quality of life for
people from all walks of life. As a result, the government is responsible for educating the
public about this quality of life because they are unaware of it. One of the activities that can
be taken to raise community awareness is to run a campaign on Malaysian Quality of Life,
emphasising the issue in all forms of media, particularly on social media platforms such as
Facebook, Instagram, Twitter, and Tiktok. This is because the majority of people are now
distracted by these apps, and they will learn about the quality of life indirectly through the
media. They will instantly use what they learn about quality of life in their daily lives if they
read about it. This contributes to the country's economic growth. The link between quality of
life and economic stability is that a society that values quality of life will contribute to and be
responsible for improving the economy because they do not want to live in unstable
conditions, such as a lack of basic necessities such as food, clothing, and a place to live. It is
obvious that this understanding of quality of life plays an important role in the socio-
economic development of a community.

4.3 The government and the private sector work well together to stabilize the country's
economy to grow rapidly

One of the finest options for addressing the country's poverty problem is for the
government and the private sector to work together to stabilise the country's economy and
allow it to grow swiftly. Prior to that, there are numerous problems that must be overcome in
the partnership of these two parties, but they must be overcome in the national interest.
According to Datuk Seri Mustapa Mohamed (2022), private-sector collaboration with the
government is essential in solving new economic problems, such as those posed by global
trends. This must also be used to the development of Kampung Batu Gajah in Kelantan, so
that the government and private sector do not abandon their efforts to transform the area into
a more developed one. One of the agencies established by the government in Kelantan is
KESEDAR. As a result, the KESEDAR agency should maintain positive relationships with
the private sector in order to assist in the development of the village area.

For example, KESEDAR can work with private agencies in operating housing,
agriculture, industry and trade in the village area. To carry out the aforementioned
development, KESEDAR agencies must seek a lucrative quantity of funding from the
business sector. If they work together effectively on a variety of fronts, the village's
development will be accelerated and run more smoothly. As we know that the private sector
always gives the best in their services, that is what is expected in such collaboration. With
that, all the problems of backwardness or poverty faced by the residents of the village can be
overcome and improved immediately. It is apparent that collaboration between the public and
private sectors is critical to the development of the village area of Kampung Batu Gajah,
Tanah Merah Kelantan.

5.0 CONCLUSION
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