One-off RM500 handouts not enough, say experts

One-off RM500 handouts not enough, say experts

An economist and a sociologist call for stronger and long-term welfare support for the poor.

PETALING JAYA:
An economist and a sociologist have criticised the government’s recent decision to give a one-off RM500 handout to the poor, saying they need stronger and long-term welfare support.

Economist Madeline Berma, a Suhakam commissioner, said the amount would not be much of a relief to Malaysians falling under the B40 income group, serving only to put food on their tables for a short while.

“The cash handouts were okay during the lockdown, but what we need is for the government to create employment and business opportunities for the B40 group,” she said.

Berma said the government must focus on creating a conducive environment for small businesses to grow by creating outsourcing jobs.

Madeline Berma.

She called for the revival of mega projects and rural infrastructure projects as these could generate jobs that could be outsourced.

Sociologist Denison Jayasooria of University Kebangsaan Malaysia said aid measures should be aimed at building self-reliance and resilience.

He said he had never been an advocate of cash handouts for vulnerable groups.

“It’s much better to address root issues like low wages by raising minimum wages, supporting the B40 with better social protection programmes, giving access to public housing and providing a space for micro business,” he said.

Denison Jayasooria.

He also said there was a need for more social workers serving the urban poor and street communities to enable them to enjoy a better quality of life.

Jayasooria criticised what he said was the inclination to focus too sharply on big businesses and foreign investment, alleging that this was killing the local community-based economy.

“More space at the ground level for business activities is key to adopting a stronger multi-dimensional approach to poverty eradication, especially in urban areas,” he said.

Recently, Prime Minister Muhyiddin Yassin announced that the government would allocate RM1.2 billion in cash aid for some 2.4 million people aged between 21 and 60 who have lost their incomes as part of an initiative known as Pemerkasa.

This includes a one-off RM500 payout for those in the B40 group and a similar payout for Bantuan Prihatin Rakyat recipients who earn less than RM1,000 a month.

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