Gerakan has warned Putrajaya that some phone dealers may abuse the RM200 smartphone rebate scheme by forcing purchasers to take up new broadband services.

In a press statement today, Gerakan Youth deputy secretary-general Hng Chee Wey said phone dealers might take advantage of the scheme in order to make a quick buck.

“Most of these youths already have their own package, so all they want is to get a better phone without any strings attached,” he said.

NONE Hng was commenting on the federal government's RM200 rebate for smart phone purchase by youths between the age of 21 and 30, and earning below RM3,000.

The rebate will only apply to smartphones retailed at RM500 and below. The federal government said the cap was necessary as the scheme was meant for low-income earners.

Hng said that this cap was too low and some of the models which falls in this category - as identified by the Malaysian Communications and Multimedia Commission (MCMC) - are no longer in production.

He said that the MCMC should reconsider some of the conditions and Last week, the cap was met with a flood of criticism online . Other critics include Umno Youth chief Khairy Jamaluddin .

However, the MCMC defended the move, stressing that those who can afford phones costing RM500 and above don't need the rebate.

Putrajaya has been showing signs that it may heed criticisms. Information, Culture and Communications Minister Rais Yatim may include smartphones “ slightly above ” the cap into the plan.