AKPK expands GoGiggers financial literacy programme to Sabah, Sarawak
AKPK CEO Azaddin Ngah Tasir highlighted the programme's multi-faceted approach, which includes infographics, podcasts featuring financial experts, and weekly audio broadcasts. 'This initiative reflects our commitment to fostering financial resilience among Malaysians, particularly gig workers facing economic challenges,' he said during the programme's launch.
The six-month hybrid programme, supported by Bank Simpanan Nasional (BSN) and the Employees' Provident Fund (EPF), will provide tailored financial guidance to 100 participants from Sabah and Sarawak. Previous iterations saw significant improvements in participants' financial well-being, with 74% initiating emergency savings and opening GIRO accounts.
Foodpanda Malaysia's managing director, Tan Ming Luk, emphasised the partnership's role in empowering delivery riders. 'Investing in their financial security strengthens not just individuals but also the broader gig economy,' he noted. The initiative aligns with national goals of reducing household debt and promoting sustainable economic growth. - Bernama
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Borneo Post
8 minutes ago
- Borneo Post
Multiplier effect of RM2.6 billion in economic stimulus
Do our part, spend the RM100 wisely, and help to stimulate the economy. Rotarians purchasing essential items to be donated to a rural school hostel. In a move aimed at stimulating domestic consumption and offering some financial relief to the rakyat, Prime Minister Datuk Seri Anwar Ibrahim recently unveiled a nationwide initiative: every Malaysian aged 18 and above will receive RM100. While the announcement inevitably carries political undertones, that is a discussion for another day. To benefit from the initiative, recipients must spend the RM100 between 31 August and 31 December 2025, using their MyKad to make transactions. After the Prime Minister's announcement, some quarters reacted with skepticism, scoffing, 'Just RM100? That's hardly enough to make a real difference.' While RM100 per person may appear modest, the collective impact of this move is anything but small. With an estimated 26 million Malaysians eligible for this benefit, the total government spending for this initiative could amount to RM2.6 billion. But the story does not end there. When we take into account the concept of the economic multiplier effect, the overall impact on the Malaysian economy could be far greater. To understand this impact better, let us first explore the concept of the economic multiplier effect in layman's terms. Simply put, when money is injected into an economy, it does not just benefit the first person who receives it. That person, in turn, spends part of it, which becomes income for someone else. That second person then spends part of the income, passing it on to a third, and so the cycle continues. Each round of spending becomes slightly smaller than the last, but altogether, they add up to a much larger total economic impact than the original amount spent. This chain reaction is measured by what economists call the multiplier, which depends largely on a factor known as the Marginal Propensity to Consume (MPC). The MPC is a number between 0 and 1 that reflects the amount of every additional Ringgit of income a person is likely to spend rather than save. For example, if a person has an MPC of 0.80, it means the person is likely to spend 80 sen out of every additional Ringgit earned. The remaining 20 sen is either saved or used to pay off debts. The higher the MPC, the more powerful the multiplier effect will be. In the Malaysian context, research indicates that the MPC varies significantly across income groups. Low-income households generally exhibit a high MPC, sometimes reaching 0.81, as they must spend most of their earnings on essential items such as food, rent, transportation and utilities. In contrast, high-income households tend to exhibit a higher capacity to save. When crafting policies to stimulate economic activity, governments often target groups with higher MPCs, as their spending is more likely to generate a stronger and more immediate multiplier effect by circulating rapidly and repeatedly within the economy. The multiplier effect formula calculates the total increase in economic activity resulting from an initial injection of spending. The formula is 1 / 1 – MPC, where MPC is the Marginal Propensity to Consume. If we assume an MPC of 0.81, which is a reasonable estimate for the lower and middle-income groups in Malaysia, the multiplier becomes: 1 / 1 – 0.81 = 1 / 0.19 = 5.26 This calculation means that for every RM1 the government injects into the economy, the total economic activity generated could be as much as RM5.26. Applying this to the RM2.6 billion initiative, the total impact on the Malaysian economy could reach approximately RM13.7 billion. This kind of impact is especially significant during periods of economic uncertainty, rising living costs or when domestic demand requires a boost. For many small businesses and vendors, even a modest increase in consumer spending can make the difference between staying afloat and shutting down. By requiring the RM100 to be spent, rather than saved, and within a defined timeframe, the government is promoting a rapid cycle of consumption. This measure carries the potential to revitalise key sectors such as retail, food and beverage, transportation and services, industries largely driven by micro, small and medium enterprises (MSMEs). Another strategic feature of this policy is the use of MyKad as the mechanism for spending. This creates an efficient, transparent and traceable way of ensuring the funds are used as intended. It also allows policymakers to collect useful data on consumption patterns, which can be used to guide future economic planning. The requirement that the RM100 be spent within a four-month period ensures that the money enters the economy quickly, amplifying its short-term impact. Beyond the numbers, there are social and psychological benefits to this initiative. At a time when many Malaysians are grappling with economic pressure, the gesture of direct financial support can help restore confidence and morale. It signals that the government is attentive to the needs of the rakyat and willing to take action to support them. This reassurance, in turn, can increase consumer confidence, which is an important driver of economic activity. When people feel more secure about their financial future, they are more likely to spend, which further fuels the multiplier effect. However, the effectiveness of this RM2.6 billion stimulus also depends on several key factors. Firstly, it is important that the money is spent primarily on goods and services produced within Malaysia. If a significant portion is spent on imported products, the multiplier effect will 'leak' out of the economy, benefitting foreign producers instead. Secondly, the initiative should ideally be complemented by other policies that support local businesses, such as training, grants, subsidies or tax reliefs to enable them to meet the increased demand. Thirdly, attention must be paid to inflationary pressures. A sudden surge in demand, if not matched by supply, could lead to price increases that erode the purchasing power of consumers. An equally important component in the success of this initiative lies in the role of the rakyat. The effectiveness of the multiplier effect relies on their willingness to actively participate in the programme. The rakyat should be mindful to spend the RM100 in ways that support local businesses and essential services, rather than on imported or non-productive items. By choosing to buy from neighbourhood shops, local markets and Malaysian-owned enterprises, consumers can help ensure that the money remains within the domestic economy for as long as possible. Moreover, responsible and purposeful spending on food, school supplies, daily essentials or healthcare can contribute to both personal well-being and the broader national interest. The collective participation of millions of Malaysians in this initiative can significantly magnify its economic impact. Thus, the rakyat are not just recipients of financial aid, but active agents in revitalising the economy. The multiplier effect remains a powerful concept in economic planning. It tells us that the real value of government spending is not just in the initial amount disbursed, but in the way that money travels through the economy, creating layers of benefit as it goes. In this case, RM2.6 billion is not just a financial injection; it is a catalyst for RM13.7 billion worth of economic activity, livelihoods sustained and hopes renewed. While RM100 per person may seem insignificant on the surface, the strategic design and targetted timing of this initiative give it the potential to significantly uplift the Malaysian economy. By tapping into the high MPC of the population, especially among the lower-income groups, the government is leveraging a tried-and-tested economic principle to maximise impact. If well-executed, this policy will not only stimulate spending but also support local businesses, safeguard jobs and strengthen consumer confidence. It serves as a timely reminder that in economics, small actions when multiplied wisely, can lead to powerful results. Let us support this government initiative with a broader perspective. RM100 may seem little in terms of personal financial impact to high income earners, but its true value lies in the collective economic ripple it can create. When viewed on a national scale, this contribution carries the potential to stimulate substantial economic activity and generate meaningful income across various sectors. By participating in this effort, we are not merely spending, we are playing an active role in revitalising our economy and supporting fellow Malaysians whose livelihoods depend on it Footnote Dr Richard A. Gontusan is a Human Resource Skills Training and Investment Consultant. He earned a Master of Arts Degree in Economics from the Southern Illinois University at Carbondale, USA, and has lectured in Economics at the tertiary level. His views expressed in the article are not necessarily the views of The Borneo Post.
The Star
2 hours ago
- The Star
Fewer than 1,500 property purchases by foreigners in 2024, says minister
PETALING JAYA: There were 1,459 property purchases by foreigners last year, says Housing and Local Government Minister Nga Kor Ming. He said this accounts for 0.56% or RM3.054bil of the total 259,058 property transactions worth RM103.9bil by Malaysian citizens last year. "The Ministry's priority is to ensure every citizen has a place to live, whether owned or rented, under the concept of housing as a place to live (shelter for all), in line with the aspirations and goals of the National Housing Policy (2018-2025)," he said. Nga stated this in a parliamentary written reply dated July 31 in response to Ismail Muttalib (Perikatan-Maran), who asked about the statistics on foreigners owning houses in Malaysia. Ismail also inquired about the number of Malaysians owning more than two homes. According to Nga, the Basic Amenities Survey report 2022 by the Statistics Department noted 76.5% of Malaysians owned a home but did not specify if they owned more than two. Meanwhile, Nga said the Housing Credit Guarantee Scheme under the Syarikat Jaminan Kredit Perumahan Bhd (SJKP) has approved guaranteed loans totalling RM20.9bil based on 88,507 applications. Nga also said the government is considering expanding the rent-to-buy scheme for the people's housing programme (PPR), considering changing trends where buyers are concerned about economic stability.
New Straits Times
2 hours ago
- New Straits Times
IJM Allianz Duo Highway Challenge goes sustainable in hosting 13,000 runners
KUALA LUMPUR: More than 13,000 runners took over the closed highways of New Pantai Expressway (NPE) and Lebuhraya Sungai Besi (Besraya) earlier today for the IJM Allianz Duo Highway Challenge 2025. Malaysians made up 80 per cent of the participants, with the remaining 20 per cent hailing from about 30 countries. The seventh edition of the running event featured multiple a 42.195km full marathon, 21km half marathon, and 10km and 5km runs. Organised in collaboration with IJM Corporation Bhd and Allianz Malaysia Bhd, this year's edition also introduced several sustainability initiatives, namely a bottle collection and recycling effort; sustainable race apparel and paperless race experience. Over 16,000 plastic bottles used during the race were collected and sent to an authorised recycling facility, ensuring zero plastic waste. Paper cups were also separated and collected for recycling. This initiative was carried out in collaboration with Trash4Cash and with the support of 286 volunteers at the water stations. This year's race apparel was made from biodegradable, high-performance recycled fabrics, a first for the event, combining eco-consciousness with athletic function. The event also adopted digital registration, race packs details and e-certificates to reduce paper consumption while improving convenience for participants IJM Corporation Bhd group chief executive officer and managing director Datuk Lee Chun Fai said the event challenged them each year to raise the bar, not just in terms of race distance, but also in how they activate their highways for the community. "Now, World Athletics-certified and with strong support from our partners, the event delivers a race that meets international standards while staying rooted in the local spirit. "From recycled race apparel to paperless race experiences, we are proud to see how the event has become a platform for healthier living, environmental responsibility and shared momentum year after year," he said. Allianz Malaysia Bhd chief executive officer Sean Wang said" "We are proud to continue our support for the IJM Allianz Duo Highway Challenge, an event that epitomises the essence of healthy living and sustainable lifestyles. "This year's edition has not only clearly reflected those values but also fostered positive change within the community as well as on the environment." Race director and managing director of EC Pixels Asia Eugene Chan said: "Seeing 13,000 runners cross the finish line is a powerful testament to our vision.
