THE first tranche of BR1M for this year has been credited into the accounts of Malaysians eligible for it with little fanfare to milk the event for political mileage.

This a far cry from the early days when hundreds lined up to collect their payment vouchers under the watchful eyes of Barisan Nasional politicians.

“It’s easier now that it’s banked into my account. I don’t have to line up like I used at a school,” said Siti Naqiyah Abdul, a housewife in Kuala Lumpur on the past trouble she went through to collect the 1Malaysia People’s Aid (BR1M) vouchers.

“I used to line up for hours to get the vouchers. I had to take leave previously, because I worked in shifts and I don’t get off days in the weekends,” the 27-year-old said, adding she will be spending the bulk of it on groceries and other necessities.

Seven million people are eligible this year to receive BR1M payment, involving a total sum of RM6.3 billion. The payment will be made in three tranches, with further payments in June and August.

BR1M vouchers, which were redeemed at participating banks, were distributed in public spaces, schools, district offices and sometimes Barisan Nasional components premises, to the criticism of the opposition. Vouchers were sometimes redeemed on the spot by bank staffers.

“I have no problem with it,” said Razak, 59, a pensioner in Kuala Lumpur. “That’s because I follow the procedure and I always update the (BR1M) form. I will update it directly through the Inland Revenue Department (LHDN) office rather than update it online to avoid any issues

First time recipient Safriha Irma Sahruddin, said she found the process to be a breeze.

“This is very convenient for many people. We don’t have to line up. It saves a lot of time,” said the 33-year-old medical assistant.

Introduced in December 2011, BR1M provides provide additional spending money for lower-income households.

The programme currently provides direct financial assistance to households earning less than RM3,000 a month via a cash voucher worth RM1,200, to be made in three payments.

Households that earn more, but below RM4,000 will receive RM900. Single adults, above 21 years of age, earning below RM2,000 will receive a one off payment of RM450.

A total of RM26.2 billion has been distributed since 2012, the year the programme began.

In the inaugural BR!M year, a total of RM2.1 billion was dispensed to 4.2 million recipients.

Yesterday, Prime Minister Najib Razak said BR1M was a proposal by Bank Negara Malaysia to enable targeted subsidy for lower income households.

“During a briefing in 2011, Bank Negara suggested the government to introduce targeted subsidy to replace bulk subsidy saying that subsidised items like RON95 petrol was also used by foreigners and tourists, and also benefited high income groups which owned high powered vehicles,” he was quoted as saying by The New Straits Times.

A check with Bank Negara’s annual and economic development reports made before Budget 2012 was announced in October, 2011, showed no recommendations for targeted subsidies or financial assistance programmes.

However, the central bank had noted, in several reports, the impact of the sharp increases in global commodity prices on domestic inflation as well as the inefficiency of bulk subsidies such as fuel subsidy.

Prior to BR1M’s implementation, the opposition had called for some form of financial assistance to the poor.

Outlined in ‘The Policies of Pakatan Rakyat’ in 2009, the now defunct Anwar Ibrahim-led Pakatan Rakyat had proposed, among others, direct cash assistance to target groups to end hardcore poverty as part of an overall need-based affirmative action policy.

BR1M was drafted under the Economic Transformation Programme (ETP), Najib’s initiative to turn Malaysia to a high income economy. BR1M is been implemented by the Performance Management And Delivery Unit (Pemandu), a unit under the Prime Minister’s Department.

Pemandu is accountable to the Auditor-General and also reports to the Economic Planning Unit, the Prime Minister’s Department and Parliament.

Last year, Isham Jalil, special officer to the prime minister said in a commentary published in the New Straits Times that BR1M could be Najib’s most important legacy.

“This is the gist of “Najibnomics”, the policy of growing the economy even through hard political choices, while taking care of the least fortunate people at the same time,” Isham had said.

“And the exemplary manifestation of this belief is going to be the most important legacy of Prime Minister Najib Razak,” he added. – February 26, 2018.