The government has been told to identify a a long-term alternative to the 1Malaysia People's Aid (BR1M) in addressing the burden of rising cost of living faced by low-income households (B40) and the medium-income group (M40) in the country.

Senator Datuk Chin Su Phin said the measure could be replaced with a subsidy for essential items and other services, besides increasing the special housing schemes for the B40 group.

"We are aware the country's population is increasing each year and the number of people eligible for BR1M will also increase, thus this will be a bigger stress on the government's finance.

"So, the alternative measure is seen as being more effective to assist Malaysians on the whole while the target groups are not marginalised," he said when debating on the 2017 Supply Bill in the Dewan Negara, Monday.

"Since BR1M was introduced (in 2012), has the government conducted any detailed study on the economic impact on the B40 group and the country in general, and until when will the programme go on?" he said.

While supporting the rationalisation of subsidies implemented by the government, Chin said the government should study the form of aid beneficial for the M40 group who were not eligible for BR1M.

The B40 group is defined as households with a monthly income of up to RM3,855 and the M40, with a household income of between RM3,860 and RM8,319.

Meanwhile, Senator Datuk Abdullah Mat Yassin urged the government to focus on small-scale projects which would have a good impact on rural residents.

He said rural people could not benefit directly from the mega projects implemented by the government.

"Programmes such as repairing rural houses should be continued as such projects allowed the people to feel the government's touch," he said.

The bill was tabled by Second Finance Minister Datuk Johari Abdul Ghani for the second reading and seconded by Deputy Finance Minister Senator Datuk Lee Chee Leong.

The Senate will sit again tomorrow. -- BERNAMA