Raifizi said a universal basic income, which economists and MPs have mooted as a means to help the people cope with the higher cost of living, is heavily dependent on the government’s fiscal position.

“When we are not in a strong fiscal position, a universal basic income is out of the question. We won’t be able to support cash assistance (initiatives),” he told reporters after an event at the ministry today.

Under a universal basic income, citizens receive money on a regular basis.

Rafizi was asked if the People’s Income Initiative (IPR) is meant to be a replacement for a universal basic income.

“The objective is very different. IPR has a very specific target, which is to ensure the lowest-income group has a consistent and sustainable source of income,” he said.

Under Budget 2023, the government has allocated RM750 million for the IPR, which seeks to help participants earn between RM2,000 and RM2,500 a month through three entrepreneurship programmes.

However, Rafizi said the government has not ruled out implementing a universal basic income, though this could only be considered once its financial position was strong enough.

“Ideally, we want to consolidate the cash assistance programmes (that) we have. That process will allow us to better assess if we want to adopt a universal basic income,” he said.