Syed Saddiq Rm600 Cash Aid Increase Insufficient To Cover Price Hikes

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Muar MP Syed Saddiq Syed Abdul Rahman has bemoaned that the RM600 increase in Rahmah Cash Aid (STR) combined with Rahmah basic necessities aid (Sara), as announced during the tabling of Budget 2024, is too small.
While he supports the federal government’s consideration to adopt cash transfers for the implementation of targeted subsidies, he asserted that the increase of RM600 is not sufficient to cover the high cost of living that is suppressing the middle-class income group, which makes up the majority of Malaysians.
“If the government is serious about implementing ‘cash and out’ or direct cash aid, which was suggested by Titiwangsa MP (Johari Abdul Ghani), the amount clearly needs to be higher.
“It’s not enough to give only RM600 when the costs of goods go up to RM7,200 a year with the high cost of living that is suffocating and suppressing the middle class!” he explained.
“I’m not the one who said this, but if you ask the people, they don’t call it the Madani government. But they call it ‘mahal dah ni’ (a wordplay on Madani that brings about the meaning ‘it’s already expensive’),” he said when debating the Supply Bill 2024 in the Dewan Rakyat today.
In his budget speech on Friday (Oct 13), Prime Minister Anwar Ibrahim said the quantum of STR will be increased from RM3,100 to RM3,700 in 2024.
In addition, Anwar said STR recipients will also be getting an increased amount of Sara of up to RM1,200, divided into payments of RM100 per month throughout the year.
While this was initially interpreted by some as being two separate quantum, the budget touchpoints released by the Finance Ministry yesterday revealed that the amount of STR aid for 2024 is the same as for this year.
However, the RM3,700 amount appears to be achieved when the maximum STR payout of RM2,500 is combined with the RM1,200 Sara aid, with the latter amount only for the poor and hardcore poor.
Meanwhile, highlighting the government’s move to float the price of basic necessities especially poultry, Syed Saddiq proposed for the price flotation to be done periodically over a period of five years.
He also asserted that Putrajaya should send out clear signals pertaining to this specific move.
“How much will it increase every year? Don’t just say ‘in a periodic manner’ but there are no details that follow. I want to ask what are the details?” he inquired.
‘Don’t implement immediately’
On Friday, Anwar said the government is considering floating the price of the aforementioned items as the supply has begun to stabilise and the current market price is below the ceiling.
The subsidy scheme was rolled out by former prime minister Ismail Sabri Yaacob’s administration in February 2022 to mitigate the impact of the sudden price hike and supply shortage.
Syed Saddiq also reiterated frustrations over the increase of sales and service tax (SST) from six percent to eight percent.
While the new SST rate does not involve the food and beverage industry and telecommunications, the affected industries include logistics, brokerage, underwriting and karaoke.
“For the new sectors, which will see the increase (from six percent) to eight percent in SST rate, it should be done in phases.
“Don’t implement it immediately,” said the Muda president.
Furthermore, he also urged Anwar’s administration to explain its price floating strategy in its plan to rationalise diesel subsidies.
He stressed the importance of government providing a detailed explanation as it affects the middle-class income group.
“What is the strategy? Will we continue to raise the price of diesel following the market price of RM1.60 once the subsidy is withdrawn immediately?
“Or will it be increased by 20 sen to 30 sen every year? We are still waiting for an explanation,” he said.
“Let’s not forget the bus and private van drivers, who do not get subsidies, as the subsidies would go to the companies (they work for) and middlemen. Don’t forget Mak Cik Kiah, who will not be receiving this subsidy,” he added.
Tabling the 12th Malaysia Plan mid-term review on Sept 10, Anwar said the federal government will be introducing targeted subsidies to retarget all types of subsidies such as electricity, diesel and petrol as well as other social assistance.
He stressed that this would ensure the right target groups benefit from the assistance provided as well as ensuring prudent fiscal spending
In this regard, the mid-term review report said a socioeconomic data repository on households called Pangkalan Data Utama (Padu) will be developed to facilitate the distribution of a more targeted subsidy and assistance. - Mkini

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