Latest news with #cash aid
Free Malaysia Today
16 hours ago
- Business
- Free Malaysia Today
Let those who don't need RM100 aid return it, says MCA
MCA president Wee Ka Siong said he would be the first to return the RM100 one-off cash aid announced this morning. PETALING JAYA : MCA has called on the government to introduce a mechanism that would allow Malaysians who do not need the RM100 one-off cash aid announced this morning to return the funds. In a Facebook post, MCA president Wee Ka Siong said the returned funds could be channelled to healthcare and education. Wee said the funds could be used to expedite elective treatments for 15,000 patients at government hospitals, some of whom face a waiting period of up to 21 months. The money could also be used to offer scholarships to straight-A Sijil Pelajaran Malaysia students as well as Sijil Tinggi Persekolahan Malaysia and matriculation graduates with excellent CGPAs, he said. 'Rather than spending public money that may benefit those who don't really need it, wouldn't it be better to support those who genuinely do, while also upgrading our healthcare and education systems? 'It will be a win-win solution. The people get to choose, and the government wins too!' he said. Earlier today, Prime Minister Anwar Ibrahim announced the one-off cash aid for all Malaysians aged 18 and above, under the Sumbangan Asas Rahmah initiative. The money, which will be channelled through recipients' MyKad, is in conjunction with the National Day celebration, he said. In a special televised announcement, Anwar said the aid could be used between Aug 31 and Dec 31 to purchase basic necessities from over 4,100 outlets, including hypermarkets such as Mydin, Lotus, Econsave, and 99 Speedmart. He said the government had set aside RM2 billion for the initiative, which is expected to benefit some 22 million citizens. Wee said he believed that Anwar, his ministers and elected representatives would be willing to forgo the RM100. 'I will be the first to contribute mine,' he said. In a separate statement, Parti Sosialis Malaysia (PSM) said it welcomed the reduction in RON95 prices and the RM100 one-off grocery aid but stressed that these measures would only provide temporary relief for low-income households. PSM deputy chairman S Arutchelvan said that instead of one-off handouts, a universal basic income and a pension scheme for the elderly would have a more lasting impact. He also proposed doubling the public healthcare budget and increasing the minimum wage, while supporting small businesses with transition subsidies. 'These structural reforms would provide more sustainable benefits than one-off handouts. We urge the government to implement policies that permanently reduce the cost of living and address wealth inequality at its roots,' said Arutchelvan.
Free Malaysia Today
3 days ago
- Business
- Free Malaysia Today
Populist spending not the same as helping the people
From Muhammed Abdul Khalid The government recently announced a rakyat assistance package, the headline measures of which included a reduction in RON95 petrol price, one-off cash aid of RM100 for all adults, and a freeze on toll rate hikes. While these moves sound rakyat-friendly, in reality, they are wasteful, regressive, and fail to address the root causes of hardship for Malaysians. Let's break it down. Petrol subsidies: rewarding the rich, ignoring the poor The government is currently spending RM20 billion to RM23 billion annually to subsidise RON95 petrol. In the coming months, fuel prices are expected to be reduced even further by six sen. But who benefits the most? Certainly not Mak Cik Kiah riding a kapcai or driving her old Kancil to the pasar. Instead, it is those filling up their luxury SUVs, such as Alphards, twice a week who are reaping massive benefits from a system that disproportionately favours high fuel consumption. Data shows that one-fifth of B40 households do not own any vehicles, compared to the 100% car ownership among T20 households. These poorer households receive no benefit from petrol subsidies, yet help fund them through taxes, particularly through indirect taxes such as the recently expanded sales and service tax. A mere six-sen drop in fuel prices could result in an additional RM2 billion to RM3 billion in subsidies, much of which would again flow into the fuel tanks of the well-off. On average, the T20 will receive nearly three times more fuel subsidies than the B40. This is clearly a policy that favours the wealthy, an absurd outcome in any system that claims to be just. RM100 for all, even the rich Another move is the RM100 one-off cash handout to all adults under the Sumbangan Asas Rahmah (SARA) programme, at a cost of RM2 billion to the government. There is no question that RM100 means a lot to those in need. This should not be dismissed or belittled. Perhaps policymakers intended for everyone, regardless of income, to benefit from government generosity. But is it really sensible for corporate leaders, ministers, and millionaires to receive the same RM100 as daily wage earners, pensioners, or rubber tappers? Is that fairness? Especially when the country is already RM1.6 trillion in debt, why are we giving money we do not have to people who clearly do not need it? Wouldn't that be a textbook example of waste? Moreover, economic growth is forecast to remain slow this year. Debt-to-GDP is unlikely to meet the 60% target under the new Public Finance and Fiscal Responsibility Act. The RM5 billion earmarked for these blanket handouts could be better directed to where it actually makes a difference, instead of being thrown at everyone equally. For instance, the existing SARA programme currently channels RM100 monthly to 5.4 million low-income households and individuals. If the new RM2 billion allocation were entirely redirected to them, each recipient could receive nearly RM400 in additional aid – four times more than what is being offered now. Wouldn't that be more meaningful, targeted, and Madani? The additional RM2 billion to RM3 billion in fuel subsidies would also go much further if spent on the poor. As of mid-July, about 300,000 families were officially registered as poor. If the government were truly prudent, it could distribute at least RM1,600 per family from these funds on a monthly basis between now and year-end, rather than through a meaningless one-off amount. This would be a better way to spend RM5 billion to RM6 billion of taxpayers' money, and a better way to stimulate the economy over the long term. If the government truly wants to help the rakyat, it should gradually phase out blanket fuel subsidies in a systematic way and avoid populist cash giveaways to those who do not need them. The savings could be redirected to free breakfast programmes at primary schools, more investment in public transport, or the construction of new hospitals. If nothing else, increase salaries for the police, soldiers, nurses, and teachers, or raise pensions for retirees. That would be far better than giving unnecessary handouts to the rich. In other words, much more can be done with RM5 billion to RM6 billion than doling out cash to those who do not need it. Don't squander the nation's taxes or its long-term economic future through reckless spending. With global headwinds mounting, we need smart spending, not blanket handouts that favour the wealthy while leaving the poor behind. Continuing with these regressive policies will not only strain our fiscal position but also deepen inequality. If these trends continue, it will not be reform but social injustice. Muhammed Abdul Khalid is a research fellow at the Institute of Malaysian and International Studies at UKM and a fellow at the World Inequality Lab at the Paris School of Economics. The views expressed are those of the writer and do not necessarily reflect those of FMT.
Free Malaysia Today
24-07-2025
- Business
- Free Malaysia Today
Chow welcomes RM100 aid but hopes for more holistic solutions
Penang chief minister Chow Kon Yeow said the RM100 one-off cash aid is still appreciated, acknowledging that it would cost Putrajaya billions of ringgit. (Johnshen Lee pic) PETALING JAYA : Penang chief minister Chow Kon Yeow has welcomed the government's RM100 one-off cash aid for Malaysian adults, but expressed hope that more holistic measures would be introduced to mitigate the rising cost of living. Chow said the RM100 cash aid under Sumbangan Asas Rahmah (SARA) was still appreciated, acknowledging that it would cost Putrajaya billions of ringgit. 'However, I believe the people are looking forward to more comprehensive forms of assistance, such as initiatives that ease the cost of doing business, or infrastructure projects that create jobs and spur growth,' he said, according to the Penang government's news organ, Buletin Mutiara. He acknowledged that Putrajaya was facing financial constraints currently. This morning, Prime Minister Anwar Ibrahim said the one-off payment would be channelled through the MyKad and was in conjunction with the upcoming National Day celebration. He said the cash could be used between Aug 31 and Dec 31 to purchase basic necessities from more than 4,100 outlets, including hypermarkets such as Mydin, Lotus, Econsave, and 99 Speedmart. Chow acknowledged that Malaysia was facing domestic and foreign economic pressures, and said Anwar should be given the room and time to navigate these issues, including the US tariffs. 'Anwar should be given a free hand to mediate and mitigate the current situation. He deserves more time to address these concerns in a meaningful way,' said the DAP leader.
Free Malaysia Today
24-07-2025
- Business
- Free Malaysia Today
RM100 aid plan may boost Q2 GDP, says economist
The one-off RM100 cash aid that can be redeemed at 4,100 grocery stores across the country is expected to give the economy a boost. PETALING JAYA : The government's decision to offer a one-off RM100 cash handout to all adult Malaysians has won plaudits from economists. Afzanizam Abdul Rashid, chief economist at Bank Muamalat, said it would give the economy a boost, albeit a short-term one, while Geoffrey Williams said that despite it being a small amount, it would still be meaningful for poorer families. Prime Minister Anwar Ibrahim, who announced the payout and a host of other incentives yesterday, said all Malaysians aged 18 and above would benefit from the handout. Afzanizam Abdul Rashid. Afzanizam said the payout, which is part of a wider RM15 billion aid package under the Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (Sara), would likely boost local spending and domestic demand, key pillars of the economy. 'This could give Malaysia's second quarter gross domestic product (GDP) a lift,' he told FMT. 'This will certainly help to increase consumer spending. Given the sizeable share of consumer spending (60% of GDP), it should have a material impact on the overall economy, especially domestic demand,' he added. He said the handout could act as 'fiscal pump priming' – the government spending money to boost the economy — amid global risks. '(Combined) with the 25-basis-point drop in the OPR (overnight policy rate), the move should boost GDP growth in the second half, which will benefit all citizens in this country,' he added. Afzanizam also said the lower- and middle-income groups were more likely to spend the RM100 rather than save it, given their high tendency to spend. In his announcement, Anwar said that apart from the RM100 cash aid, which would benefit 22 million adults, the pump price for RON95 would also be lowered to RM1.99 per litre for those eligible by year's end. Geoffrey Williams. Williams sees the RM100 handout as a 'potential turning point' in the country's welfare policy. 'This is a good initiative. It will serve as a pilot for reform of the STR/Sara programme to create a universal basic income (UBI), which would be a first in the world and set Malaysia as a leader in welfare reform,' he told FMT. 'It has all the features of a UBI because it is a cash transfer to individuals, not households, without conditions and available to all Malaysians without the need to apply.' Williams said that while the RM100 payout might be considered small, especially as a one-off, it was still meaningful for poorer families and single people. 'For a household with four adults it is RM400 which covers essential food costs.' He added that the move was affordable under ongoing subsidy reforms and could add up to RM6 billion in spending to the economy this year. 'This is a very good way to use RM2 billion and will add a small stimulus worth RM6 billion to consumption in the second half to support growth which is otherwise expected to be weaker,' Williams said. 'It really is a good move. Although many will be cynical about timing, he deserves credit for this move.' On the planned fuel subsidy, Williams said the drop in price from RM2.05 to RM1.99 was modest but helpful. 'The small reduction from RM2.05 to below RM2 is helpful but only marginally so. The subsidy rationalisation is not primarily intended to cut daily costs. It is mainly to reduce wasteful subsidy spending. 'It will not be expensive and will be paid for from savings derived from high-income users,' he added. Williams also said some form of subsidy was still needed to prevent low-income Malaysians from being priced out of fuel. 'We need to see the mechanism, but some form of subsidy is still necessary to prevent the poor from being excluded from access to petrol,' he said. Afzanizam also said the targeted fuel aid could help curb inflation. He added that while there is the risk of businesses raising prices, limiting the RON95 subsidy to qualified individuals would moderate the risk of inflation.
Free Malaysia Today
24-07-2025
- Business
- Free Malaysia Today
Check your facts, DAP man tells MCA chief on RM100 cash aid
DAP's Lim Lip Eng said it is 'unacceptable' for MCA president Wee Ka Siong to misunderstand the matter of unused funds from the RM100 cash aid announced yesterday. PETALING JAYA : A DAP leader today criticised MCA president Wee Ka Siong for calling for a mechanism that would allow Malaysians who do not need the RM100 one-off cash aid announced yesterday to return the funds. In a statement, Lim Lip Eng said Wee had issued his statement without checking the facts. Lim, the Kuala Lumpur DAP secretary, said Prime Minister Anwar Ibrahim had already explained that any unused funds would be automatically returned to the government after Dec 31. 'The policy is clear. But Wee chose to ignore it and made a misleading statement just to stay in the spotlight. 'As a former minister and current MP, it is unacceptable for him to misunderstand such a simple matter,' he said. Wee had urged the government to introduce such a mechanism, saying the returned funds could be channelled to healthcare and education. Anwar, in his announcement, had said that the cash aid for Malaysian adults under the Sumbangan Asas Rahmah initiative would be channelled through recipients' MyKads. He said the funds could be used between Aug 31 and Dec 31 to purchase basic necessities from over 4,100 outlets, including hypermarkets such as Mydin, Lotus, Econsave, and 99 Speedmart. He also said that the government planned to redistribute any unclaimed funds to programmes in aid of vulnerable groups next year. Lim said it was fine to criticise the government, but that comments should be based on facts. 'Spreading confusion is not leadership. It is just noise,' he added.
