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Lately, there has been unfounded criticism of Prime Minister Najib Abdul Razak’s Bantuan Rakyat 1Malaysia (BR1M) incentive to help the lower income group and others. The BR1M focuses only on those who need the financial assistance and is an efficient and effective way to help the needy.

Giving subsidies to the general population is not the best way to help the lower income group. Reduction in income tax, too, will not help the poor as most of them do not have a taxable income. Hence the only and best option is the BR1M scheme

Presently with the Goods and Services Tax (GST), the prices of a wide range of consumer goods have spiked and the people are finding it difficult to make ends meet. Private sector wages and salaries are not going to go up in the short term, and therefore BR1M becomes even more essential to help the lower income group.

Malaysia’s wages and salary structures are very much weighted against the lower category of workers, who form the largest component of the lower income group.

The government coffers are filling up fast with the introduction of the GST and it is hoped that the government will increase the amount of the BR1M payment in the 2016 Budget that will be tabled in September or October. Already civil servant are fretting about the higher cost of living and the fall in value of their emoluments. Possibly the government will help the government employees and pensioners in the 2016 budget.

However, the government needs to do its part for the private sector workers who slog hard to increase productivity that has that has contributed much to the country’s development and prosperity.

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