By Sri Tanjong Assemblyman Chan Foong Hin

As the fuel hike was announced by the Domestic Trade, Consumer Affairs and Cooperatives Ministry two days ago, the ministry also disclosed that the Barisan Nasional (BN) government would increase the Bantuan Rakyat 1 Malaysia (BR1M) cash aid to cushion the impact of the fuel hike, as part of the 2015 Budget on next Friday.

However, let me quote Sultan of Perak, Sultan Nazrin Shah’s recent speech at the Malaysian Anti-Corruption Commission’s (MACC) 47th Anniversary event — Putrajaya must stop being in denial about wealth inequality and realise that hardship and poverty are also fuelling corruption. He said, the situation is like a disease that needs serious treatment, it can’t be cured by taking a Strepsil.

Yes, BR1M is just another Strepsil which hopes to cure the serious social illness, wealth inequality that needs intensive treatment — a structured, comprehensive and holistic social policy. The Najib administration should stop the cash handouts, not because of the programme is causing dependency among it’s low-income recipients who have not shown gratitude for such aid, as claimed by former Prime Minister Dr. Mahathir Mohamad. It should be stopped because it’s purely political motivated and lacking of economic wisdom or ideology to guide.

BR1M is a popularity seeking move to gain immediate political support. Our Prime Minister’s approval rating increased every time BR1M was given to the people. According to the answer given by the Chief Minister in the first state assembly sitting this year in April, 485,285 people receives BR1M 2014 with total amount RM 249,544,400 for the state. The breakdown of recipients statistics in the answer are according to the Parliamentary and State seat, whereas I put my question to ask for the distribution according to “division / district”. In every session that BR1M is handed out, the YBs or his/her PPM shakes hands with recipient, smiling and posing; these goodies are none other than financial aid gifted by the mighty and kind patrons.

The BR1M payment would not be enough to offset the fuel hike for the poor, given the fact that those eligible for BR1M are at the bottom 60% of the country (household income less than RM4,000) who will soon be taxed by the proposed Goods and Services Tax (GST), which will be implemented starting April next year. The BR1M payment is so minimal, and the GST is designed to tax those who cannot afford to be taxed. With the combination of the fuel hike, GST at 6%, lower commodity prices, higher interest rate after BLR adjustments, do you think that our disposable income to be spent for shopping is increased after receiving BR1M’s RM 650 for one year?

The current situation is terrible. 80% of households earn less than RM5,000 a month, and of this, 40% were earning less than RM2,000 a month. Najib administration is totally losing in it’s economics direction. Fuel hike with promised BR1M to cushion impact is only a demonstrating the lacking of genuine ideas for improved governance. BN is instead focussing on a cover-up of the waste of taxpayer’s money. Fuel hike is not necessary if the the billions lost from leakages and corruption is addressed. Eventually, all of us have to pay for the consequences of BN’s own financial weaknesses responsible for the country’s chronic deficit.