JAN 30 — To many families, the RM500 Bantuan Rakyat 1 Malaysia (BR1M) aid was a Chinese New Year ang pow. Prime Minister Datuk Seri Najib Razak said that the people had no feeling about the long-term fuel, sugar and flour subsidies but were very grateful for the RM500 cash aid.
Some people even kissed the prime minister’s hands when they received the aid and such a phenomenon can actually be analysed from two aspects.
About four million households with income less than RM3,000 have applied for the aid and if we assume four family members in each household, we can find that 16 million people are actually low-income earners, accounting for 57 per cent of the total population. Since the deadline has been extended to February 10, 2012, the number of applicants is expected to increase, reflecting a huge gap between the rich and the poor.
For example, former Cabinet minister Datuk Seri Azalina Othman received RM300,000 for a 1967 Mercedes Benz 280SL which she sold to a businessman. And in 2010, the highest remuneration for a single director in listed companies was RM106.7 million.
It is nothing for the rich to spend hundreds of thousands ringgit overnight, but the poor might have to survive on only RM10 per day. The wealth disparity must be narrowed to maintain social stability.
In his State of the Union address, US President Barack Obama proposed to require millionaires to pay at least 30 per cent in taxes. The Malaysian government can also impose high taxes on wealthy people to ease social inequality.
If the government does not increase taxes while letting the rich enjoy government subsidies, how is it going to have sufficient resources to implement social welfare plans?
Secondly, aid distribution before the general election would only push the country towards a welfare state and gradually into the plight similar to the one faced by Greece and Italy.
The RM100 allowance for students, the RM500 BR1M aid, the RM200 book vouchers and the recent sugar subsidy hike are not the last batch of ang pows for the people. Najib has announced that Felda should expect a “big gift” from the government.
In addition, there is also the government’s special savings scheme, Skim Amanah Rakyat (Sara) 1 Malaysia, which guarantees a return on investment of 12 per cent per annum over five years.
Meanwhile, Cuepacs is opposed to the pay rise gap between senior and junior civil servants under the new Public Service Remuneration Scheme (SBPA). Based on political considerations, the government might review the 7-13 per cent salary increment scheme. Increasing the increment might further push the budget deficit towards a dangerous level.
The minimum wage system for private sector is scheduled to be revealed in February. Would it be too favourable to the people and become impractical?
The question now is, would the ang pows turn into real income that strengthens the people’s competitiveness? Some people might not appreciate it, or even abuse it. For example, some university students actually advertised their 1 Malaysia RM200 book vouchers for sale online.
If the government fails to stop abuse, misappropriation, smuggling and fraud practices, the Treasury would never have enough money for subsidies. In the long run, there would be no more feelings of gratitude and gratefulness. Instead, they will just take it for granted.
To eliminate the disparity of wealth, as well as the problems of low income and dependence on the government, only reforms could achieve high economic growth and urge the people to work hard.
Fighting for votes by distributing ang pows is actually a dangerous move of seeking temporary relief regardless of the consequences, which might be disastrous. — mysinchew.com
* This is the personal opinion of the writer or publication. The Malaysian Insider does not endorse the view unless specified.
