KUALA LUMPUR: Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz in tabling Budget 2021 today underlined several initiatives to aid the B40 group, especially in light of the ongoing battle against the Covid-19 pandemic.
He pointed out that RM6.5 billion in monetary aid would be disbursed, benefiting an estimated 8.1 million Malaysians.
"To alleviate the burden of living cost and expenses on the B40 group in cities, specifically parents who work, the government will provide community centres which would also provide care for children after school.
"With an allocation of RM20 million, these community centres, which will be a collaboration with Non-Governmental Organisations (NGOs), will also be equipped with care facilities, tuition classes, mini libraries and mentor guidance programmes," Zafrul revealed.
With regards to the loan repayment moratorium that was previously extended for targeted groups, Zafrul explained that those in the B40 category (bottom 40 per cent of households) who receive aid along with micro entrepreneurs could choose between deferring loan repayments for up to three months or reduce their monthly installments by up to 50 per cent for six months.
Where the M40 group is concerned, borrowers from this segment who endure a fall in income would also be able to apply for the assistance rendered for loan repayments albeit via an easier and simplified process.
Also, as part of efforts to alleviate the financial burden on the Rakyat during the current Covid-19 situation, the Finance Minister shared that those who earn between RM50,001 to RM70,000 will pay a lower income tax of one percentage point.
He also announced that the Bantuan Prihatin Rakyat (BPR) programme would replace the Bantuan Sara Hidup (BSH) programme, whereby aid for B40 and M40 groups will be increased with the allocations being in accordance with the income of the household along with the number of children in each household.
Therefore, households with a monthly income of below RM2,500 with one child will receive RM1,200, while households with two children or more will receive RM1,800.
Households with a monthly income of between RM2,501 – RM4,000 with one child will receive RM800, while households with two children or more will receive RM1,200.
Single adults who receive a monthly salary of below RM2,500 will be entitled to receive RM350, though the age limit for single individuals will be reduced to 21 years-old from the previous limit of 40 years-old.
The government also announced an RM180 telecommunication credit for the B40 group, with Tengku Zafrul pointing out that the aid will help to reduce the financial burden on the B40 group, especially for the majority who crave for better Internet access.
"From the first quarter of next year, as many as 8 million recipients from the B40 group will receive the RM180 each in the form of telecommunication credit.
"This aid can also be used for Internet subscription plan or even to subsidise the purchase of a new smartphone," he said.
He added that telecommunication companies will also provide benefits worth RM1.5billion which will include free mobile data.
"Apart from health coverage and protection, the government also plans to extend the social coverage to the B40 group through the Tenang Coverage/Protection Voucher Programme (Program Baucar Perlindungan Tenang).
"Through this programme, each recipient of B40 aid will be given a RM50 voucher as financial assistance to purchase the Tenang Protection product which includes Takaful Life and accident.
At the same time, the government will extend the exemption period on stamp duties for all Tenang Protection products with an annual contribution of not more than RM100 for a period of another five years up to 2025," he said.