BR1M 3.0: What’s coming?

Written by iMoney Editorial

With Budget 2014 around the corner, most Malaysians are speculating what the government has in store for its people next year. However, one thing is for sure, people are expecting more hand-outs.

The recent price hikes in fuel and cigarettes had many people reeling from the implications. And the common sentiment is the government should do something to alleviate the people’s burden caused by these hikes.

One of the known ways the government has been helping the people is through the 1Malaysia People’s Aid (BR1M). According to Finance Minister II Datuk Seri Ahmad Husni Hanadzlah recently, the government is planning to distribute BR1M twice in 2014, with a higher total amount.

The first draft of the BR1M proposal for 2014 has already been submitted to Prime Minister Datuk Seri Najib Razak, said Ahmad Husni to The Star.

 

Further changes are still being made on the proposal and the final structure will be tabled and announced during Budget 2014 announcement (on October 25), he added.

Here’s a brief overview of BR1M 2.0 distributed this year:

• BR1M amount distributed was RM500 per household.
• Disbursement was made via cash vouchers.
• Disbursement was made once a year.
• Eligibility was restricted to Malaysians with a household income of less than RM3,000 a month.
• BR1M amount of RM250 per person was also distributed to unmarried individuals aged 21 and above and with a monthly income of less than RM2,000.

Some of the changes highlighted for BR1M in 2014 are:

• Disbursement of BR1M to be done twice a year.
• Disbursement will be done directly to the people’s bank accounts, as opposed to vouchers previously.
• Total amount for BR1M is not finalised but most likely will be higher than RM500 per household.

The government is also looking into providing the best assistance model for those earning a household income of between RM4,000 and RM5,000. Some are speculating that BR1M 3.0 might be increasing the restriction for eligibility to include this group of people, too.

Considering the price hikes and the inevitable implementation of GST, even middle income group with household income of RM5,000 will need some assistance from the government to manage their quickly dwindling finances.

With much anticipation, we will have to wait for the announcement of Budget 2014 to get the finalised details.