Institute for Democracy and Economic Affairs (IDEAS) also expressed its disappointment with a statement by deputy women, family and community development minister Siti Zailah Mohd Yusoff in Parliament on Oct 6 that Covid-19 welfare aid was being given using the old PLI because using the new one would be too expensive.

“The government’s current fiscal predicament is no excuse to use outdated PLI figures. Government resources, especially during a time of crisis such as this global pandemic, should be prioritised towards people’s needs and well-being,” said IDEAS chief executive officer Tricia Yeoh.

The new PLI is RM2,208 per household while the old one, from 2005, was RM980.

Yeoh said the government’s decision to use the outdated PLI was problematic because the amount of welfare aid being distributed does not accurately reflect the real situation on the ground faced by Malaysians who are struggling.

However, she welcomed the effort of the government to further revise the PLI in 2022 in light of post-pandemic conditions, as stated in the 12th Malaysia Plan. She urged the government to routinely revise the PLI to accurately reflect current prices.

Yeoh also stressed that major decisions undertaken by the government such as aid distribution should be transparent and reminded the government not to unilaterally decide on using outdated metrics without proper consultations with poverty experts and academics.

“It is incumbent on the government to adopt the new PLI to ensure its welfare policies have the maximum impact”, added Yeoh.