No need to study BR1M recipients' spending...yet

There is no need for the government to study how recipients of the 1Malaysia People’s Aid (BR1M) are spending their money at this point in time.

Deputy Finance Minister, Datuk Chua Tee Yong said the government is confident that the target groups who are receiving the aid such as the bottom 40 percent household income (B40) group, are spending the money for their necessities.

"At this point, it is up to the recipients (on how to spend their BR1M) and we're confident that the B40 group is using the money to buy only their basic necessities," he said when replying to a question by Datuk Shabudin Yahaya (BN-Tasek Gelugor) in the Dewan Rakyat today.

Shabudin had wanted the Finance Ministry to state its measures in ensuring that the objective of BR1M is met – to lessen the people's burden, especially the B40 group – in spending only on their needs.

Said Chua, the government also has no plan to convert BR1M into vouchers or subsidies for fear of other problems such as the black market.

Responding to an additional question by Shabudin on efforts to reduce the B40's dependence on BR1M in the future, Chua said the government has implemented several programmes to better the skills and quality of life of the rakyat to allow them to earn a higher income.

"In increasing the income of the B40 group, it is clear in Budget 2016 and the 11th Malaysia Plan that the government is focused on improving the people's skills via programmes such as vocational training and 1Malaysia Training Scheme (SL1M) as well as implementing minimum wage.

"These are among the government's efforts to increase income and lessen the Gini coefficient," he said.

Chua said besides BR1M, the government had also set up various initiatives to help the rakyat via school assistance, the 1Malaysia Book Voucher, 1Malaysia Clinic and 1Malaysia People’s Shop (KR1M), in addition to tax reliefs for those in the middle-income (M40) group.

He added, since BR1M was introduced in 2012, the government has allocated almost RM14 billion which benefit almost 7.4 million recipients yearly.