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Don’t give aid based on income, say experts

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The Pemerkasa Plus package should target those who may lose their jobs, not those with low salaries.

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Free Malaysia Today
MTUC president Abdul Halim Mansor says those who are self-employed and companies that cannot operate during the lockdown should receive assistance.

PETALING JAYA:
Experts say financial assistance from the Pemerkasa Plus package should be targeted towards those affected by the lockdown, regardless of income.

This comes after many said the M40 group was overlooked in the distribution of the package.

Former prime minister Najib Razak pointed out that those earning between RM4,850 and RM10,959 a month would not receive any financial aid.

Economist Shankaran Nambiar of the Malaysian Institute of Economic Research (MIER) said aid should be given to those in dire need of assistance.

Free Malaysia Today
Shankaran Nambiar.

“The government did not anticipate the possibility of several waves of assistance that would need to be given,” he told FMT.

“Caught in a tight spot, as they are now, the government has prioritised business continuity, the B40 and the public health sector. These are the areas that are in dire need of assistance.

“The SMEs may not be getting as much as they need, and the same is the case with the M40. This is because they are in a comfortable range and do not have to worry about job loss.

“We need to be worried about those who may lose their jobs, not with M40 as a category on the whole.”

Malaysian Trades Union Congress (MTUC) president Abdul Halim Mansor said it was a total lockdown for everyone, except the 95,142 companies that had been allowed so far to operate throughout the lockdown until June 14.

“Providing financial assistance based on income level isn’t the fair thing to do.

Free Malaysia Today
Abdul Halim Mansor.

“The government should be more diligent in its distribution. Companies that are not allowed to operate and those who are self-employed should be given more financial assistance. They are the ones facing tougher times during the lockdown.”

Nur Afiqa, a freelance graphic designer, said her income had been severely affected since the onset of the pandemic, which had effectively shut down most of the country’s economic activity.

Nur Afiqa said that this year alone, her income had been reduced by 70%.

She pointed out that work had been scarce as many of her clients were affected by the restrictions.

“Most of my clients are non-essential service SMEs. If they are not allowed to operate, I won’t get any payments,” she told FMT.

She was of the view that the government should continue providing an automatic loan moratorium for the self-employed.

“At least If I have the moratorium, I won’t have to worry about my car payments,” she said.

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