THE recent announcement by Prime Minister Datuk Seri Anwar Ibrahim to distribute RM100 in cash aid to 22 million people is a clear acknowledgment of the growing cost-of-living pressures faced by Malaysians.
While this short-term relief may offer temporary comfort, it raises important questions about effectiveness, sustainability, and whether it truly addresses the root causes of economic hardship.
Is RM100 Enough?
In today’s economy, RM100 doesn’t go far. In urban areas, it may cover a week’s worth of groceries – or less.
For families supporting children or elderly relatives, especially in cities like Kuala Lumpur, the amount barely makes a difference.
It does little to offset the rising costs of food, housing, transportation, and healthcare – pressures made worse by global inflation and a weakened ringgit.
This RM100 payout will cost the government RM2.2 billion – a significant amount for a measure that provides only short-lived relief.
The bigger question is whether this money could be better invested in long-term reforms that raise income, create jobs, and improve the overall quality of life.
Short-Term Relief vs. Long-Term Strategy
There’s a well-known saying:
“Give a man a fish, and you feed him for a day. Teach a man to fish, and you feed him for a lifetime.”
Cash handouts can be useful in emergencies, but they shouldn’t form the foundation of economic policy. Long-term solutions require structural reforms, job creation, skills development, and a robust social safety net.
Malaysia faces issues such as wage stagnation, underemployment, and a mismatch between education outcomes and job market needs. Many Malaysians live paycheck to paycheck, with little savings to handle emergencies or retire comfortably. In that context, RM100 is merely a stopgap – not a cure.
Building Long-Term Resilience
The government should instead focus on sustainable investments in the following key areas:
1. Education and Skills
A future-ready workforce requires quality education and lifelong learning. This means revamping the education system and expanding access to vocational training, digital literacy, and reskilling programs. Malaysians must be equipped to work in high-growth sectors like technology, logistics, healthcare, and renewable energy. The government is encouraged to support academically qualified individuals in achieving their goals.
2. Job Creation and Industry Growth
To reduce reliance on subsidies, the government must attract high-value industries and support SMEs, the backbone of Malaysia’s economy. Creating well-paying jobs will uplift families and reduce poverty over the long term.
3. Social Protection and Healthcare
The COVID-19 pandemic exposed the weaknesses of Malaysia’s welfare system. While programs like Bantuan Sara Hidup are helpful, a more comprehensive safety net is needed – covering healthcare, unemployment, and elderly care.
4. Affordable Housing and Public Services
Improving the affordability of housing, transport, education, and healthcare will reduce financial stress on families. Strengthening public services will also help restore public trust in government institutions.
Don’t Forget the M40
While RM100 may have more impact for the B40 (bottom 40 per cent income group), the M40 (middle 40 per cent) is increasingly feeling the squeeze. Many face a cost-of-living crisis, where wages are stagnant while prices rise.
Long-term strategies must also support the middle class. This could include:
- Providing tax relief to reduce the financial burden on middle-income households and help them retain more disposable income.
- Ensuring access to affordable childcare, which would ease the strain on working parents and enable more participation in the workforce, especially among women.
- Facilitating easier access to home financing and entrepreneurship opportunities, helping the M40 achieve homeownership and build long-term financial independence through small businesses.
- Expanding access to the digital economy and supporting side-income opportunities, including online businesses and freelance work, to help supplement household income.
- Reducing the lead time and cost for business licenses, making it easier for aspiring entrepreneurs within the M40 group to start and sustain small enterprises.
Supporting the M40 is not just about easing their current burdens – it’s about ensuring they do not slip into the lower-income category due to lack of support.
A strong, thriving middle class is essential for economic stability, social mobility, and national growth.
Strategic, inclusive policies that uplift both the B40 and M40 groups are vital for a more balanced and resilient Malaysian economy.
Accountability and Fiscal Discipline
While direct cash aid is politically popular, it sets a risky precedent if not backed by a clear fiscal strategy. The government must be transparent:
- How is this aid funded?
- Are development funds being diverted?
- Is national debt increasing?
Moreover, aid should be targeted, rather than distributed all and sundry. With accurate household income profiling and data analytics, the government can ensure assistance reaches those who truly need it.
Conclusion
Giving RM100 to 22 million Malaysians is a generous gesture that recognises real financial pain. But it is not enough, nor is it sustainable.
Real change demands long-term investment in jobs, education, skills, and public services.
Malaysia must move beyond short-term fixes and focus on building a resilient, inclusive economy.
Giving a fish may satisfy hunger today – but teaching people to fish ensures they can thrive tomorrow.
It’s time to invest in the fishing rods, training grounds, and opportunities that will empower Malaysians for generations to come.
The views expressed here are those of the writer and do not necessarily represent the views of Sarawak Tribune. The writer can be reached at drjohnlau@gmail.com.
