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KUALA LUMPUR, Oct 13 --  The Budget 2020 incentives presented on Friday reflected the government's more targetted aid distribution system, covering more eligible recipients who were previously not considered to be so.

Taking the Cost of Living Aid (BSH) scheme as one of the best examples, economic analyst Prof Emeritus Dr Barjoyai Bardai said the decision to extend the scheme to single individuals aged over 40 and Persons with Disabilities (OKU) aged 18 and above earning less than RM2,000 a month was the right thing to do.

“Previously, many groups were overlooked, now the government is more aware of the groups who really deserve it. However, I think that the government should also increase the amount of aid provided through the scheme,” he told Bernama.

He said the scheme was only a short-term measure as the government was working on a medium- and long-term plan in an effort to improve the income levels of the B40 and B20 groups, who were only able to afford basic necessities such as food, housing and clothing.

Finance Minister Lim Guan Eng when tabling Budget 2020 last Friday announced that the government has allocated RM5 billion for the scheme which will be expanded to two new groups starting next year.

The government also recommends that the minimum wage be increased to RM1,200 a month in major cities, effective next year.

Through the Budget, the government also introduced the Kad95 under the Fuel Subsidy Programme (PSP) which will be provided to eligible drivers and non-BSH recipients (B40) which will allow them to enjoy a 30 sen per litre petrol subsidy limited to 100 litres per month for cars or 40 litres per month for motorcycles. The Kad95 will be implemented gradually in the first quarter of 2020.

Barjoyai said the minimum wage rate announced by the government was still low, but it would still help the B40 group and urban poor.

“In fact, the government should increase the minimum wage that benefits local workers under B40 and B20 groups. The strategy of implementing new minimum wage rates only for urban areas is also good, as the cost of living is higher in the urban than in rural areas,” he said.

On the Kad95, he said the initiative shows that many parties are eligible for petrol subsidies but differ in terms of subsidy payment methods.

“The government had announced earlier that the PSP would be paid in cash credited to the eligible recipient's account (BSH recipients), now those who did not receive BSH would receive the card.

“Maybe these two different methods are a bit complicated but I think it is also an experiment by the government to see which method is easier and if the card method is more effective, it may be expanded and become a comprehensive system for all BSH recipients,” he said.

Barjoyai also said the budget this time around was much better than last year, especially in terms of its design and overall distribution in line with the country's direction in the face of the Industrial Revolution 4.0.

-- BERNAMA