RM26.5 bln spent for social safety net programmes last year

According to the Economic Outlook 2021 report released by the Ministry of Finance today, the largest portion amounting to RM14 billion (52.6 per cent of the total assistance) was allocated to minimise the impact of the rising cost of living and improve the welfare of the rakyat, particularly the poor and vulnerable.

“These include subsidies for cooking oil, liquefied petroleum gas (LPG), diesel and petrol, electricity, and flour.

“Other assistances include the Cost of Living Aid (BSH) as well as allowances and cash transfers to the people with disabilities, aged, and the poor as well as children without guardians and Orang Asli groups,” it said.

These assistances are necessary as the rising cost of living continues to be the main concern for most people, particularly the poor and vulnerable.

Meanwhile, the report said as education is an essential enabler for social mobility and human capital development, the second-largest amount RM6.7 billion (25.3 per cent) was allocated for this sector.

“This includes programmes on food, textbooks and other assistance for school and pre-school children as well as matriculation and higher education students,” it said.

The report also said agriculture is a priority sector, not only due to its linkages to the rest of the economy but also a disproportionate share of B40 households are in the sector.

“Hence, this sector is a significant beneficiary of assistances amounting to approximately RM1.9 billion (7.2 per cent).

“Farmers and fishermen are among the beneficiaries through various programmes including paddy price and fertiliser subsidies, paddy production incentives, monsoon season assistances and oil palm re-planting as well as the implementation of Malaysian Sustainable Palm Oil (MSPO) certification,” said the report.

Besides, with the implementation of the Movement Control Order (MCO) due to the COVID-19 pandemic, the government has also announced several economic stimulus packages to protect lives and livelihoods.

“Under the Prihatin Rakyat Economic Stimulus Package (PRIHATIN) and the PRIHATIN Plus, announced in March and April, various one-off assistances were provided to households to ease their financial burden,” it said.

The report also mentioned that under the same package, the wage subsidy programme was also implemented to encourage the retention of workers earning less than RM4,000 and employers experiencing more than 50 per cent decrease in their income since Jan 1.

“These subsidies enable employers to be flexible in retaining the workers during the MCO. The programme involved an allocation amounting to RM13.8 billion, benefitting approximately 4.8 million workers.

“This has contributed to the moderation of the unemployment rate to 4.7 per cent in August as compared to 5.3 per cent in May,” the report said.