The country's "strong domestic economy" is enough to fund the 1Malaysia People's Aid Programme (BR1M), Prime Minister Najib Abdul Razak said today.

He rejected allegations by the opposition that the funds for BR1M, under which financial assistance will be channelled to ease the people's burden, was from a World Bank loan.

"When a programme has significant effects, the opposition will try to raise controversy on our efforts or give a negative picture of our initiatives.

"The latest, I heard, is that the government borrowed funds from the World Bank to support BR1M payments.

"But today, as the finance minister, I want to state clearly that the accusation is not true at all and it's another form of lies spread by the opposition," Najib said at the launch of the Komuniti 1Malaysia carnival in Bukit Beruntung, Selangor.

'Provide propf of allegations'

He said the government last borrowed US$400 million from the World Bank in 1998, during the Asian financial crisis.

"After that, we have not taken any loan from the World Bank at all because we are driven by a strong domestic economy and that's the source of the RM500 million.

Hitting out at the opposition for the purported allegations, Najib demanded that they provide proof.

"We have no fear. We have no fear because we stand for the truth," he said.

Yesterday Finance Ministry deputy secretary-general Irwan Siregar Abdullah also issued a denial on the same issue.

Irwan also denied talk that the money for BR1M was obtained from the Employees' Provident Fund (EPF), Petronas and Tenaga Nasional Bhd (TNB).