The Malaysian Insight

NORZAINI Ahmad does not qualify for aid from Putrajaya, despite the fact that she is a single mother and caring for her diabetic brother.

On paper, the spice seller from Penang is “middle class”, but the reality is, her expenses are more like those in the low-income group.

For instance, her son had to drop out of college because the family could no longer afford to pay his fees.  

Norzaini is symbolic of those who fall through the cracks of Pakatan Harapan’s stringent welfare system, which excludes some families not classified as B40.

“I’ve tried applying for all types of aid, such as Bantuan Sara Hidup (BSH, or Cost of Living Aid), but I didn’t get any. That’s why my son had to stop his studies.”

Although M40 folk earn more than RM4,000 per month and are technically better off than those in the B40 category, they told The Malaysian Insight that they still struggle to make ends meet and save for a rainy day.

In a straw poll of 10 M40 families, they said they want tax breaks and help with school expenses in Budget 2020.

Like the B40 group, many of the 10 M40 families said they, too, find it difficult to cope with the high cost of groceries, household items and services such as education.

Some are seeking help to expand their businesses, while others want PH to provide better schools, hospitals and kindergartens for those who are worse off than them.

Project manager Muhammad wants Putrajaya to consider restructuring the welfare aid assessment system to take into account the size of families instead of purely looking at income levels.

“One of my friends does not get BSH because he’s not B40. But he has six kids. Compare that to a B40 couple with no kids who get BSH,” said Muhammad, who gave only his first name.

When it came into office, PH revised and tightened the former Barisan Nasional government’s Bantuan Rakyat 1Malaysia cash aid scheme.

Each household that earns less than RM4,000 per month receives between RM500 and RM1,000, depending on the number of dependents, such as children and senior citizens, and their income brackets.

Budget 2020 will be unveiled on Friday, and Finance Minister Lim Guan Eng has signalled that it will be aimed at boosting domestic spending and consumption.

Help us up, but spend prudently

M40 households are those with a monthly income of between RM3,000 and RM8,000.

The 10 families The Malaysian Insight met in Penang, Selangor and Sarawak said they do not qualify for BSH, but want the government to improve the quality of education and healthcare.

“I send all three of my children to preschool, and each costs RM500 per month. I can’t save as our wages are just enough,” said technician Thanabalan Arumugam, adding that both he and his wife have to work in order to have enough for the family.

“I hope the government can improve the quality of Kemas kindergartens, so that parents don’t have to choose between Kemas and private centres,” said the 36-year-old from Penang.

“Parents send their children to Kemas kindergartens because they are cheaper, but the quality is not so good.”

The high cost of giving kids a good education was echoed by factory supervisor Azaza Abdul Aziz from Shah Alam, Selangor.

“I hope that the government can bring down costs linked to sending kids to schools, such as school uniforms, shoes and textbooks,” said the 43-year-old, who has one child in college, one in secondary school and one in primary school.

Along with better schools, oil and gas executive Inja Bucking said she hopes that Putrajaya will earmark more funds to improve roads and hospitals.

“As I am contemplating buying a house, I hope there are initiatives that make houses much more affordable,” said the 32-year-old Sarawakian.

Fellow Sarawakian Dennis Wong hopes that Putrajaya will give tax breaks to encourage people to be environmentally friendly or buy healthy food.

Like most of the B40 households The Malaysian Insight met for a previous story, only one of the M40 families asked for direct cash aid, preferring instead that the government help citizens increase their wages rather than give handouts.

“I’d like to see a budget that is loaded with economic activities for Malaysians rather than just dishing out cash,” said a senior officer with a government-linked company in Sarawak.

Despite calls to free its purse strings, executive Hafizi Suki said Putrajaya must be prudent in Budget 2020 and lower the federal deficit to below 3.4%.

“We have to be careful when we spend because we don’t want our financial ratings to go down and the ringgit exchange rate to lower. Because when that happens, we all suffer,” said the junior executive from Petaling Jaya. – October 9, 2019.