BR1M: Is It A Form Of Corruption?

In the past week, there has been much debate on Bantuan Rakyat 1Malaysia or more popularly

known as BRIM.

Tun Dr Mahathir Mohamad has accused the government of corrupting the rakyat by giving out

BR1M.

Is BR1M a form of corruption? What do experts say about it? Can the rakyat accept BR1M?

BR1M IS A CONTRIBUTION, NOT CORRUPTION

It is wrong to say that BR1M is a form of corruption because when the government gives out the

BR1M, it does not expect anyhting back.

The government sincerely pays out the contribution to help the rakyat such as low income earners, bachelors and young graduates.

How can BR1M be called a form of corruption because the rakyat don’t give anything back to the government.

Corruption is when the person who gives money, expects something back in return and this does not happen when the government gives out BR1M.

In this case, BR1M cannot be called corruption because the government does not expect anything back in return from the rakyat.

If BR1M is a form of corruption, what do you call all the contributions given in the past by the government to religious schools, fire and accident victims and victims of natural disasters such as floods, fires and thunderstorms?

By helping these victims, is it a form of corruption?

Clearly, helping out Malaysians by giving contribution is an act of kindness and a gift and is not a form of corruption.

BR1M IS NOT MONEY COLLECTED FROM THE LOWER INCOME

It is wrong to say that the government tax the rakyat and then give it back as BR1M.

This is because, BR1M is money taxed from the rich people such as the tax called GST or Goods and Services Tax.

The government slap the GST tax on the rich and then some of the money is redistributed to the poor as BR1M.

So it is wrong to say that the BR1M money is money collected by the government from the low and middle income.

Negri Sembilan Menteri Besar Datuk Seri Mohamad Hasan told reporters on December 28, BR1M is money collected from rich people who buy expensive handbags, go on expensive holidays overseas and drive big luxury cars.

The money is then distributed to the low and middle income people to help the economy.

BR1M IS ALSO PRACTISED IN OTHER COUNTRIES

Cash handouts such as BR1M is not new and is commonly practised in developed countries such as in the United Kingdom, Singapore and the US.

In the US, the poor, unemployed and homeless even receive food coupons where they can get free food at canteens called soup kitchens and free hostel so that they will not freeze to death when they sleep out in the streets.

Sunway Business School Dean Dr Yeah Kim Leng said BR1M is timely as it is one way where the government can share its profits with the rakyat such as money that Petronas gets when it sells its oil.

BR1M CAN REACH THE LOWER INCOME DIRECTLY BECAUSE OIL SUBSIDIES ALSO BENEFIT THE RICH

The government’s move to subsidise oil does not really benefit the lower income as they mostly drive small cars and ride motorcycles.

So the oil subsidies really benefit the rich rather than the poor rakyat.

This is because the rich drive the big and expensive cars such as Mercedes and BMW which consumes a lot of oil.

So it is the rich who benefits from the oil subsidy.

So to prevent this wastage, BR1M can solve this problem because the money is given directly to the lower income people.

In its report, Khazanah Research Institute said the country’s subsidies must be reformed so that it can reach the target market.

Khazanah Research Institute said this can be done by giving cash handouts or BR1M to the target market which are the low income rakyat.

BR1M CAN HELP STRENGTHEN THE ECONOMY

In Malaysia, it is the low and medium income rakyat who helps the most in strengthening the economy.

This is because the average rakyat spend a lot during weekends by going to shopping malls with their children, go watch movies, eat at the food court and buy clothes and groceries.

It is the low and middle income rakyat who helps stimulate the economy by spending and shopping which will support the economy as they spend a lot when they go out.

The rich meanwhile, don’t spend that much and park their money to earn interests. Sometimes they even keep their money in banks outside of the country.

So the government is wise in giving BR1M to the rakyat as is they who will help to make the economy stronger and stay resilient during these tough times.

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