World Bank: Income Relief by the government should continue for 6 more months
Covid-19’s effects
Covid-19 has affected many Malaysians and now we have the flood which has also devastated many homes and thus households. Some may have suffered huge financial losses and will now have to start cleaning up. My friend’s car was completely submerged under water and he is now facing a financial distress.
There’s also the possibility of the rain to continue and that’s a big concern for many Malaysians. This is why it is important for the genuinely affected ones whether Covid-19 or the recent flood to receive assistance to get back on their feet. Government has to do something and fast. World Bank also have their own recommendations about what the government should continue doing.
Article in themalaysianreserve.com Senior economist on Poverty and Equity Dr Ririn Salwa Purnamasari of the World Bank group said that the government must continue its income relief support to a broad range of households, particularly low-income and vulnerable households, through cash assistance transfers at least until economic growth, job creation, and wage growth resume.
She said, “Thereafter, this cash assistance can be focused more narrowly on the chronically poor.” She also shared
She also said that targetted wages subsidies must be introduced, including for youth and women, who traditionally suffer from difficulties in entering the labour market. Thus she suggested, “As the economy and employment recover, resources could be directed to those who may continue to need support to obtain a job and who may not benefit from the existing wage subsidy programme.” Please read the full article here: Article in themalaysianreserve.com
Blanket versus targeted
Please note that I disagree with blanket assistance and I prefer the assistance to be targeted and really reaches the ones who need them the most. If we have a blanket one, then the funds available for everyone will be a very small amount. However, if it’s targeted, we can really help those in need more and maybe even for a longer period of time. Then again, I am not the government.
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