The MCA president’s call for a second round of Bantuan Rakyat 1Malaysia (BR1M) handouts reflects the government's failure to address fundamental problems in the economy, said PKR strategies director Rafizi Ramli.

"When BR1M was first announced... Prime Minister Najib Abdul Razak said this was a one-off assistance to reduce the rakyat's burden for the moment, as other programmes are being carried out to help the rakyat.

NONE "This means after the first round of handouts, nothing much has changed, or (the economy) may have even gotten worse that the government has to resort to a second handout,” said Rafizi ( left ).

“This (the BR1M aid) does not resolve the root cause of the public's economic misery," he told a press conference in Petaling Jaya this afternoon.

He was commenting on MCA chief Chua Soi Lek who was reported yesterday urging the government to provide a second round of the RM500 BR1M assistance to cope with inflation.

Chua reported made the statement after a dialogue session with Indian and Malay groups in Wangsa Maju

Rafizi said the real problem with inflation in the country is that prices of consumables are being distorted as a result of unfair concessions and monopolies.

‘Gov’t already in debt’

He added that the ballooning government debt would mean a second round of cash handouts is unlikely to happen.

NONE "Personally, I think our debt has exceeded the 55 percent statutory limit because our growth this year has slowed to about four percent.

“A second round will involve a cost of RM2 billion. There are financial and legal constraints," he said.

He speculated that Chua’s motive in making the call was to jolt the public's memory again in the face of a looming general election, as people may have by now forgotten about the last government boon.

"Chua should forget about the whole thing and focus on issues. Don't think they can buy the election this time round," he said.