Only 14% of M1 group qualifies for welfare aid, says deputy minister

KUALA LUMPUR: Only 14% of those in the M1 income group are eligible to receive Bantuan Keluarga Malaysia (BKM) as announced under Budget 2022, says Datuk Eddin Syazlee Shith.

“The latest government BKM aid is for those earning under RM5,000 a month.

“In this regard, in the M1 category, only 14% are eligible for the aid," the Deputy Minister in the Prime Minister's Department (Economy) said when answering a question raised by Cha Kee Chin (PH-Rasah) in the Dewan Rakyat on Wednesday (Nov 3).

Apart from BKM aid, he said the Budget also provided other incentives and tax relief for those eligible for aid.

The M1 category refers to the bottom 10% of those in the M40 group whose income is between RM4,850 and RM5,880 a month.

Cha wanted to know what was being done to help those in the M40 group who have now slipped to the B40 group owing to effects of the Covid-19 pandemic on the nation's economy.

Eddin noted that based on a study by the Statistics Department, some 2% of the M40 or about 600,000 households had slipped into the B40 category.

The groups by monthly household income level are: B40 (up to RM4,850), M40 (RM4,850 to RM10,595), and T20 (above RM10,960).

Eddin told the House the study also revealed that the average monthly household income had dropped by 10.3% to RM7,089 last year, compared to RM7,901 in 2019.

On the review of household income to determine the poverty line, Eddin said a comprehensive study will be carried out to determine household income levels next year.

He agreed with a proposal by Che Abdullah Mat Nawi (PAS-Tumpat) that the study should be based on geographical profiling for more accurate findings.

Che Abdullah said the study should take into account differing income levels and cost of living between main cities, towns and rural areas.