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Welfare Dept aid unreasonable: Chin
Published on: Tuesday, June 30, 2015
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Kuala Lumpur: Senator Datuk Chin Su Phin has appealed to the government to implement more programmes and provide assistance to elevate the income level of the people, particularly those living in the rural and interior areas in Sabah and Sarawak. Chin also hoped that the government would address economic inequality in society because the issue would hinder the government's effort to assist the bottom 40 per cent (B40) income group.

He said the 11th Malaysia Plan (11MP) aimed to increase the mean income of the B40 households from RM 2,537 to RM 5,270, as well as to hit USD 15,000 of gross national income per capita by 2020.

While the targets were consistent with Malaysia's goal to become a developed nation by 2020, Chin wanted to know the measures that would be undertaken by the government to ensure the income level of the target groups would reach the desired mark.

Chin pointed out that the targeted income level was an average figure, and many Malaysia were still below that line.

"Hence, I hope the government will give more attention and carry out more programmes and assistance which are focused on elevating the income level of the people, particularly those living in the rural and interior areas in Sabah and Sarawak," Chin said that during the debate on the 11MP at the Dewan Negara here.

At the same time, Chin hoped that the government would look into economic inequality among the people.

Economic inequality, as Chin explained, referred to how economic metrics were distributed among individuals, groups and citizens of a country.

Chin requested the government to provide data on the income of the top 20 per cent and top one per cent earners, as well as the distribution of assets in the B40, middle 40 and top 20 groups and more importantly, the amassed wealth of the top one per cent earners.

On a similar note, Chin pointed out that the definition of poverty should not be static and must change from time to time, more so in the current situation of uncontrollable hikes in the prices of goods.

"We have had successes in our effort to eliminate poverty, but times have changed.

"The definition of poverty, be it hardcore poverty or poverty, should change from time to time."

For example, Chin said the figure or definition of poverty–RM 750 in Peninsular Malaysia, RM 850 in Sabah and RM 900 in Sarawak, should change from time to time.

Chin was also skeptical about some of the projections the government has made as it was not supported by realistic efforts, and the figures seemed to be contradictory and inconsistent.

He urged the government to improve the indicators and study the poverty line by taking into consideration the minimum wage, standard and cost of living.

On a related matter, Chin said the amount of assistance given by the Social Welfare Department were no longer relevant.

He said the role of the department was to assist the poorest people, especially those in the B40 group, to allow them to lead a more comfortable life. The department also disbursed assistance for disabled workers, elderly folks, disabled people, child care and general aid.

However, Chin said many of the recipients received only RM 80 a month, which was unreasonable for those who lived in cities.

Chin said the government and Social Welfare Department should review and amend the criteria, adding that he wished to know the when the criteria were last amended.

Chin said it was not practical that only people who earned RM 750 and below were eligible for the financial assistance.

"There is a single mother who is raising five children and earning RM 1,500 (a month), yet she is not eligible for the assistance because the criterion is income of RM 750 and below," he said.

On the other hand, Chin said the Auditor General's Report tabled in the Parliament always uncovered billions of Ringgit of public funds wasted due to leakages in the government's financial management.

As our country moves towards becoming a developed nation by 2020, Chin wished to know the steps carried out by the government to eliminate all forms of wastages, leakages and abuse of public funds.

He said the budget tabled by the Prime Minister annually was balanced with deficit under control, but there were always two to three additional budgets being tabled throughout the year.

On our country's finance, Chin said Malaysia recorded six per cent development and economic growth last year, the best in the Asia region.

In spite of the good economic growth, he said the value of the share capital of Bursa Malaysia has dropped six per cent.

In contrast, our neighbouring country Thailand recorded only one per cent in economic growth but its stock exchange's capital market has rose 15 per cent despite the country's political instability, he said.

Furthermore, Chin said the value of Malaysian Ringgit has depreciated, now traded at RM 2.70 to RM 2.80 to the Singaporean dollar, compared to RM 2.20 previously.

He hoped that the government could provide concrete explanation through short-term plans to overcome these issues.

Chin continued to say that Fitch Ratings has announced the likelihood to downgrade Malaysia's credit rating from A- to BBB on May 17 this year.

The reasons for the downgrade include the plunge in crude oil prices, narrowing in current account surplus and increase of contingent liability, including the debt-laden 1Malaysia Development Berhad (1MDB).





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