A helping hand for B40 KUALA LUMPUR

THE effects of rising costs of living are felt the most by the middle class and lower income groups, especially the B40. Lower income groups are more vulnerable to higher costs and prices, and need all the help they can get to make ends meet.

To ease this burden, 1Malaysia People’s Aid, or BR1M, was introduced by Prime MInister Datuk Seri Najib Razak on Oct 7, 2011 during the tabling of the 2012 Budget.

BR1M provides a much needed assistance to low income groups to mitigate the pressures from subsidy rationalisation by the government.

It was first mooted during the Bank Negara board of directors briefing to Najib on March 2011, and then deliberated in Economic Council meetings in March and August that year.

Prior to BR1M’s introduction in 2012, the government was already on its path towards fiscal consolidation, which included subsidy rationalisation, thus requiring a suitable mechanism to help the vulnerable groups whicn would be affected.

BR1M was meant to be a direct and targeted assistance to the low income groups to ease the pressures arising from subsidy rationalisation.

The central bank had conducted studies and found that wide ranging subsidies, administered prices and price controls had created deep inefficiencies and rigidities that prevented the economy from adjusting to global and domestic realities.

It also found that the existing subsidies and price control mechanisms had incurred large fiscal costs, which could potentially weaken the financial position of the government in the long term.

It was with this in mind that BR1M was introduced to direct assistance to the targeted vulnerable groups in a more effective and cost-efficient manner.

Targeted subsidies are a form of direct transfers from the government to the vulnerable groups to ease their financial burden.

Seven million people have received support through BR1M, although a por- tion of them do not live in poverty.

When it was first introduced, BR1M payments stood at RM500 for those with household incomes of RM3,000 and below.

Each subsequent year, the payout has been increased and has taken into consideration other household incomes as well as categories.

Payments have benefited 4.7 million households and 2.7 individuals nationwide.

For the next BR1M payout this year, 7,084,726 applications have been approved as of March 31, involving funds amounting to RM6.12 billion.

This comprises RM1,200 for 3,705,853 households with a monthly income of RM3,000 and below, as well as RM900 for 324,973 households with a monthly income of between RM3,001 and RM4,000.

Another 3,053,900 individuals earning a monthly income of RM2,000 and below will receive RM450.

In the recently unveiled Barisan Nasional election manifesto, the government has pledged to increase BR1M payments across all categories.

Those with household incomes of RM3,000 and below will have their payment doubled from RM400 to RM800 in June and August this year, increasing the total from RM1,200 to RM2,000.

Those with a household income of between RM3,000 and RM4,000 will have their payment increased from RM300 to RM600 in June and August, increasing their payout from RM900 to RM1,500 this year.

Those who are single with a household income of RM2,000 and below will have their payout increased by RM150 in June.

There will be a new category, for those with a household income between RM4,000 and RM5,000. They will receive two payments of RM350, once in June and once in August.

The children of recipients will be provided a one-off assistance of RM1,500 when they enrol in higher education institutions.

BR1M payments come in handy for food and grocery bills, monthly utilities and payments as well as expenses for schooling children. Most importantly, these payments are given to all who qualify, regardess of race or religion.

Economists have lauded BR1M for its contribution to the country’s economy, as it increases the people’s purchasing power and generates the local economy.

To enjoy the benefits of BR1M, applicants must apply online at www.ebr1m. hasil.gov.my and fill up their personal details. They can track their application status via MyBR1M at ebr1m.hasil.gov. my or email br1m@treasury.gov.my or call 03-8882 4565/4566 or toll-free at 1-800-88-2716.

They can also check the BR1M mobile app or Facebook Chat @br1monline or visit their local Inland Revenue Board office. Budget allocated for BR1M per year BR1M Payments (2012-2018) Monthly household income BR1M 2018 payment schedule Category 2 (February) (February) (February) (June) (June)