Selangor poverty guidelines make B40 groups hard to get bank loans - assemblyman

The Selangor government's move to raise the poverty guidelines to RM1,500 has made it hard for B40 groups (bottom 40 percent of income) to get bank loans.

Datuk Mat Nadzari Ahmad Dahlan (BN-Batang Kali) said the poverty guidelines made the B40 group to be poor and thus not eligible to apply for bank loan.

"The situation is made harder as the banks have tightened loan applications," he said in his suppplementary question in the state legislative assembly, here today.

In reply, State Exco for Poverty, Caring Government and Plantation Workers, V. Ganabatirau said the poverty guidelines allow those earning RM1,500 monthly to benefit from the Selangor People's Economy programme.

He added the poverty guidelines would not affect the B40 application for loans as banks would refer to the national poverty guidelines of RM950 monthly.

Meanwhile, State Exco for Local Government, New Village Development and Legalising of Illegal Factories, Ean Yong Hian Wah said efforts to eliminate illegal factories near rivers was difficult due to meddling by certain quarters.

"There will be state assemblymen and council members (local authorities) who question the demolition of illegal factories," he said in reply to a supplementary question from Mohd Khairuddin Othman (PAS-Paya Jaras).

Mohd Khairuddin wanted to know the state government's actions against illegal factories other than to issue compound and notice to offenders.

Ean Yong said the state government would shut down all illegal factories near rivers and ensure that high risk licensed factories treat effluents before releasing it into rivers to reduce pollution. --BERNAMA