Aid not reaching those who really need it, govt told

Aid not reaching those who really need it, govt told

The self-employed, daily wage earners and small traders are missing out on financial assistance, say observers.

An economist says there could be a mismatch between the help people need and the aid being offered by the government.
PETALING JAYA:
The latest financial aid package dubbed Pemerkasa Plus is not reaching vulnerable groups such as the self-employed, daily wage earners and small traders, say observers.

They said these groups are still struggling and the government must come up with a detailed strategy to ensure that the most vulnerable are taken care of.

“The government’s support is hardly there. These groups are not part of any protection scheme like Socso (social security organisation).

“This is not our first lockdown. At this point, the response towards these groups should be better,” Klang MP Charles Santiago told FMT.

Economist Barjoyai Bardai of Universiti Tun Abdul Razak pointed out that there could be a mismatch between the help people need and the aid being offered to them.

Citing the RM100 cash aid for singles, he said that amount won’t last for 14 days of lockdown.

Further, Barjoyai cautioned that if the lockdown was prolonged, many more micro-businesses would collapse.

“There are millions of households dependent on micro-businesses. If they are forced to shrink, it will have a severe effect on household income and economic growth,” he told FMT.

He pointed out that small-scale industries support about 45% of the country’s economy.

“Economic growth depends largely on consumption. If more people are jobless and don’t have enough money to spend, consumption will drop and affect the country’s GDP (gross domestic product).”

He urged the government to provide food stamps to these groups, saying: “What’s important now is to ensure they can put food on the table.”

Meanwhile, Malaysian Association of Malay Hawkers and Small Businessmen secretary-general Zamri Mohammed said he hopes government agencies will give out more financial assistance.

Among others, he called for rental discounts for stalls operating in premises owned by  local authorities.

“Small traders are still reeling from the financial impact of the first movement control order (MCO). However, we thank the government for still allowing us to operate during the lockdown,” he added.

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