Targeted subsidies fulfil needs of B40 group

KUALA LUMPUR: Whenever the cost of living rises, the bottom 40 percent of income earners (B40), whose monthly household income fall below RM3,860, are always the first to feel the pinch of hardship.

While initiatives outlined in Budget 2019 that are aimed at easing the cost of living for the B40 have received positive feedback from the public, it is hoped that the government will take the necessary measures to ensure that the proposed subsidies benefit the targeted groups.

Shazlina Shahidan, 41, a member of Rela (Jabatan Sukarelawan Malaysia or Volunteers Department of Malaysia), urged the government to monitor the implementation of the initiatives targeted at the B40 group and screen the recipients as well to ensure that only the deserving ones get them.

“The government is indeed trying to help people like us who are in the B40 group but it should make sure that only the deserving people benefit. For example, in the flats where I live, I’ve seen some people driving luxury cars, which is strange as people like us can’t afford such things,” she told Bernama.

The government should conduct a census and go from house to house to collect information about every family, she said, adding that this might be a more effective way to identify B40 families.

Shazlina, who has four children aged between 15 and 22, resides at the low-cost flats at the Batu Muda People’s Housing Project in Jalan Ipoh, here.

When unveiling Budget 2019 at the Dewan Rakyat last Friday, Finance Minister Lim Guan Eng announced, among other things, various measures to ease the cost of living for the B40 group.

He said a Cost of Living Aid or ‘Bantuan Sara Hidup’ (BSH) of RM500 to RM1,000 would be given to households earning between RM2,000 and RM4,000 a month.

He also announced an additional BSH of RM120 per child for up to four children aged 18 and below, as well as for children with disabilities with no age restriction imposed.

Other measures include increasing the household electricity subsidy from RM20 and below to RM40 and below, and the RM100 30day unlimited Rapid bus and rail pass effective Jan 1 next year.

On the much-awaited fuel subsidy, Lim announced the introduction of a targeted petrol subsidy for owners of cars with a capacity of 1,500cc and below and motorcycles of 125cc and below.

Through this mechanism, the government will provide a petrol subsidy of 30 sen a litre for RON95 petrol. However, the subsidy is limited to 100 litres a month for cars and for motorcycles, 40 litres a month.

A total of RM2 billion has been allocated for the targeted fuel subsidy, which is set to be implemented in the second quarter of 2019. It is expected to benefit as many as four million car owners and 2.6 million motorcycle owners.

People like Shazlina who are in the lower-income bracket, however, need more clarification on the targeted subsidy concept, as well as how to go about applying for the subsidies concerned.

“We’re ordinary people. Sometimes we hear about some aid or other but don’t know how to apply for it. It will be good if the government can provide clarification through various channels so that we don’t miss it,” she said, adding that if all subsidies went to the right hands, there was a chance for B40 households to improve their standard of living.

Fara Nadila Mo’min, 28, a private-sector worker, said although she was a little disappointed that the 1Malaysia People’s Aid (BR1M) programme has been scrapped, she was, however, thankful that the government has introduced the targeted fuel subsidy as it would help to ease the financial burden of B40 households like hers.

“My work requires me to go around the Klang Valley to meet clients. The fuel subsidy will at least help to reduce my costs,” she said.

Fara Nadila also welcomed the government’s move to raise the minimum wage to RM1,100 beginning Jan 1, 2019.

“Since many people are finding it challenging to cope with the rising cost of living, I hope all companies and agencies will adhere to the new (minimum wage) ruling,” she added.

Housewife Nur Hasmila Hassan, 48, said although she lived in Kemaman, Terengganu, her family was also affected by the spiralling cost of living.