Just recently, Prime Minister Tun Dr Mahathir Mohammad said that the government plans to gradually cut back on the Cost of Living Aid (COLA) or 1Malaysia People’s Aid (BR1M) before discontinuing it entirely.
Today (27 Aug), former UMNO Supreme Council member Mohd Puad Zarkashi called on Zeti Akhtar Aziz to resign from her positions in the Council of Eminent Persons and Permodalan Nasional Bhd if BR1M is discontinued, FMT reported.
Source: malaysian access
He justified his statement by saying that BR1M had been the brainchild of Bank Negara Malaysia, under Zeti’s lead. He claimed that Zeti had defended the implementation of BR1M.
“According to Zeti, BR1M was the result of thorough research into subsidy systems and social nets in several other countries.”
Source: the star
BR1M was suggested during a presentation by Bank Negara Malaysia’s board of directors in March 2011.
Puad explained that during that time, Malaysia was on the verge of taking fiscal consolidation measures. However, the subsidy mechanism and price control system used by our country had resulted in heavy fiscal burdens.
“That was why BR1M was introduced, so that it could reach its intended target group.”
“It was then discussed in National Economic Council meetings in March and August that year. In other words, BR1M was the result of careful consideration.”
Source: the star
He further claimed that the plan to phase out BR1M was due to Mahathir’s “ego” and “mistake” in abolishing the Goods and Services Tax (GST).
“He wants to destroy Najib’s legacy because BR1M is connected to Najib,” he said.
“As a consequence, it is the people who suffer.”
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Also read: Tun M: Rakyat ‘Spoilt’ By Najib’s Payouts, Govt Will Reduce and Abolish BR1M
