Dr M makes u-turn on BR1M following World Bank's study - PM

The Prime Minister said that Dr Mahathir already knew that studies by researchers from the World Bank and Stanford proved that financial aid given directly usually were spent in a prudent manner such as for family welfare and did not make them lazy as claimed.

"Financial aid such as the BR1M was introduced to assist the low-income group in easing their cost of living burden," said Najib in his latest entry in his blog www.najibrazak.com today.

This factor, said Najib, was among the four reasons why Dr Mahathir, who had frequently described BR1M as "fodder" previously, was making a u-turn by saying that the opposition would continue with the BR1M payment if it were to rule the country.

The second factor, said Najib, was because such financial assistance were also widely adopted in countries elsewhere and recognised by economic experts as a catalyst in boosting the economy.

"Thirdly, financial aid is also implemented by friends of old leaders such as the Selangor Menteri Besar (Datuk Seri Mohamed) Azmin Ali who gave out financial aid for school admission for Selangor-born residents and Lim Guan Eng who paid out financial aid for poor people in Penang.

"Fourthly, BR1M is given to the low-income group regardless of their political ideology. We don't ask them to vote for the Barisan Nasional, unlike the Azmin Ali coupons which had his face printed on the cash coupon. In fact, it is the Selangor state government that gives out a lot of financial incentives," he said.

Based on these four factors, the old leader had no other choice but to make a u-turn on his stand.