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IMAGINE the minimum monthly assistance from the Department of Social Welfare of between RM200 and RM300 for people in need was raised to RM1,000. That will alleviate many problems for aid recipients.
The annual public expenditure of such welfare payments will increase from RM1.7 billion to RM12 billion, and the number of beneficiaries is expected to reach one million now from 500,000 in 2018.
Currently 2.2 million Malaysian households earn RM1,000 less than the monthly living wage, which varies by location.
On average, the living wage is RM 5,145 in urban areas and RM 4,601 in rural areas across the country.
Data from the National Housing Department showed that 65.8% of household heads in the Popular Housing Project earn less than RM2,000.
According to the Department of Statistics, the country’s unemployment rate rose to 5.3% in May from 5% the previous month. The number of unemployed skyrocketed from 47,300 to 826,100, making it the highest in 27 years.
We are seeing unusually high numbers due to the extraordinary situation we are in. With the national economy in various sectors nearly paralyzed by the Covid-19 pandemic, we must consider unprecedented measures to address the issues at hand.
The increase in monthly aid should be the first in a series of institutional actions to extend the existing social security protection for the B40. The miseries of those vulnerable to the prolonged recession have worsened.
Free healthcare must be guaranteed together with the improvement of public transport. Targeted cash assistance has also become essential with the growing number of the urban poor.
Many urban poor could miss out on government-led policies due to current household income classifications.
We need to reclassify household income as the current demarcation is no longer applicable to promote the economic well-being of lower income groups.
Emir Research, an independent think tank on policy recommendations, suggested that B40 households be categorized into various income subgroups at a more granular level, as each subgroup may differ in needs and require specific intervention strategies.
To compound the problem of the urban poor in the Klang Valley, more poor people are moving into the city to have easier access to food and basic necessities provided by non-governmental organizations.
An immediate suggestion from the Socialist Party of Malaysia is that the government take over the operations of factories that have closed due to the pandemic.
He said these factories could be reused to make products that are useful in the fight against Covid-19. This will ensure that jobs are saved in other parts of the country.
Read this story on our iPaper: We need to increase aid as more fall through the cracks
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