Govt may increase BR1M

> Hike being mulled due to additional oil revenue

KUALA LUMPUR: The government is considering to increase the amount of cash aid, known as the 1Malaysia People’s Aid (BR1M), next year.

Stating this, Finance Minister II Datuk Seri Johari Abdul Ghani said this will be considered as a temporary assistance based on the additional government revenue from escalating fuel price.

He said the government acknowledges the headline inflation due to the escalation of fuel prices.

“In terms of global oil price, in 2008 the average was US$115 (RM494) per barrel and at that time BR1M never existed and our fuel price was RM2.30.

“But today it is at RM2.31 and government does notice this increase. Maybe, if the increase is leading to higher government gains, the government can contribute to the people like adding an extra amount to BR1M, but the extra is not permanent,” Johari said when winding up the debate on the 2018 Budget at committee stage.

He said for every increase of US$1 in fuel price, the government’s income increases by RM300 million.

“With our current budget based on an average fuel price of US$52 and the estimated increase to US$62 by the end of next year, RM3 billion in additional income could be realised.”

He said for the last three to four years, Malaysia’s core inflation had been 2.5% but the headline inflation was at 4%.

“This is because our past average global oil price was US$44 and now it’s US$53, so that would definitely have an impact on our inflation.”

During the tabling of the 2018 Budget, Prime Minister Datuk Seri Najib Abdul Razak had announced that government will continue giving out BR1M to seven million recipients with an allocation of RM6.8 billion.

He had said that BR1M for next year would be continued with a maximum payout of RM1,200.