How much BUDI95, SARA aid go to the wealthy, MP asks

KUALA LUMPUR: A BN MP has questioned the distribution of targeted subsidies such as BUDI95 and SARA assistance, specifically to high-income households. Suhaimi Nasir stressed the importance of revealing how much of these subsidies and assistance were received by high-income groups to determine the effectiveness of the government's targeted subsidy policy.

Despite allocating more than RM80 billion for subsidies, assistance and incentives in 2027, including RM40 billion for fuel subsidies, Suhaimi questioned whether the assistance provided was proportional to the rising cost of living. He suggested that the government should consider implementing an income-based mechanism to prioritize BUDI95 subsidies and SARA assistance for those who truly need it, rather than giving the same rate of subsidies to high-income groups.

Suhaimi highlighted that despite the government's claim of controlled inflation, it does not necessarily mean that prices of goods have become cheaper or people's purchasing power has improved. He emphasized that the primary objective of targeted subsidies is to reduce government expenditure and ensure equitable distribution of assistance, particularly to the B40 and M40 income groups.

In regards to Sabah's development, Suhaimi advocated for a long-term mechanism, taking into account the state's actual needs like water and electricity supply, roads, schools, healthcare, and rural infrastructure. He also stressed that the federal government's allocation of funds should consider geographical size, population distribution, poverty rates, logistical costs, and infrastructure gaps, while remaining consistent with its commitments under the Malaysia Agreement 1963.