3rd November 2021 - 6 min read
Guided by the 12th Malaysia Plan (12MP) and the theme “Keluarga Malaysia, Makmur Sejahtera”, a big part of Budget 2022 is concerned about helping the people “regain their prosperity in these new norms”. And one of the ways this is achieved is by providing financial aids to selected groups that are truly in need of assistance.
Listed here are some key people-centric financial assistances that have been proposed under the Budget 2022 to boost the welfare of the people.
The government will introduce the Bantuan Keluarga Malaysia (BKM) scheme with specific enhancements to ensure that the aid will go to those who are really affected. Under BKM, Financial Minister Tengku Datuk Seri Zafrul Abdul Aziz said that eligible households – specifically single parents with three children or more – can obtain up to RM2,500 in assistance.
According to Tengku Zafrul, households with monthly income below RM2,500 with three or more children will receive cash assistance of RM2,000. Meanwhile, an additional RM500 will be provided to single mothers or fathers who have dependents and a monthly income of less than RM5,000. Another RM300 will also be given to families with senior citizens.
Post-Budget 2022 tabling session, Tengku Zafrul further clarified that single senior citizens and bachelors earning less than RM2,500 will also benefit from BKM.
Here’s an updated table from the Ministry of Finance to help you see how the BKM scheme allocates its cash aids (and additional household rates) according to recipients:
|Households/Recipients||No. of Children||Total BKM Cash Aid|
|Households with monthly income of <RM2,500||3+ |
Up to 2
|Households with monthly income between RM2,501 – RM5,000||3+ |
Up to 2
|Single parents with dependents||N/A||RM500|
|Households with senior citizens||N/A||RM300|
|Single senior citizens||N/A||RM600|
|Bachelors with monthly income of <RM2,500||N/A||RM350|
The income eligibility requirement for individuals who wish to obtain welfare benefits from the Social Welfare Department (JKM) has been updated to match the revised 2019 food poverty line income, from RM980 to RM1,169. The food poverty line income (PLI) had been increased along with the national PLI (from RM980 to RM2,208) during the publication of the Household Income And Basic Amenities Survey Report 2019.
With this, it is expected that more people will be able to enjoy the benefits from JKM. The government will allocate RM2.4 million for the distribution of welfare assistance to benefit more than 440,000 households in need.
The Perlindungan Tenang Voucher (PTV) programme was introduced during the tabling of Budget 2021, allowing eligible B40 recipients to receive RM50 vouchers as financial assistance to purchase Perlindungan Tenang products, including life and personal accident takaful.
Under Budget 2022, the vouchers’ value will be increased to RM75 in 2022, and will also be applicable for the purchase of a comprehensive motorcycle insurance policy (150cc and below). On top of that, the government has also proposed to exempt stamp duty for Perlindungan Tenang products as well as other insurance or takaful with a premium or contribution value not exceeding RM150 for individuals (and RM250 for SMEs).
Meanwhile, the MySalam initiative is an insurance protection scheme for B40 group that was introduced during Budget 2019, and has been expanded in previous years to cover the costs of items such as stents for the heart. Under Budget 2022, it will be further expanded to cover eligible BKM recipients, and claims for medical device benefits will also be extended to dependents of eligible mySalam recipients.
Parents will be provided with an Early Schooling Assistance of RM150 per student, enabling them to obtain the necessary schooling supplies for the children’s education. This is an increase from the previous amount of RM100 per student. A total of RM450 million will be allocated for this initiative, and it is expected to benefit three million eligible students.
More than 400,000 teachers will be provided with a one-off RM100 Special Incentive for Teaching Aids as a token of appreciation for their services as they went the extra mile for their students during the Covid-19 pandemic. Teachers had been required to implement home-based teaching and learning during the extended movement control order (MCO) period to ensure that their students were still able to get access to formal education.
The government has proposed to distribute a special one-time payment of RM500 for the benefit of 70,000 imams, bilal, siak, noja, marbut, takmir, as well as Quran and Fardu Ain (Kafa) teachers.
The government will reward as many as 1.3 million civil servants Grade 56 and below with a special finance assistance of RM700 as a show of appreciation for their efforts and sacrifices throughout the challenging year. Meanwhile, one million government retirees will be given an amount of RM350. Prime Minister Datuk Seri Ismail Sabri Yaakob later added that non-pensionable Armed Forces veterans will also be eligible to receive the RM350 special financial aid.
Also as a token of appreciation, an incentive payment of RM200 will be given to community development assistants Grade 19 and welfare assistants Grade U11 and U14 who are are working at 25 welfare institutions. They are directly involved in providing care for senior citizens and persons with disabilities, as well as mental patients.
Youths between the age of 18 to 20, as well as full-time students at institutions of higher learning will be given a one-off payment of RM150 into their e-wallet accounts. This is in a bid to encourage the adoption of cashless transactions among the younger generation, as well as to stimulate consumer spending. With an allocation of RM300 million, two million youths are expected to benefit from the programme.
More than 20,000 tour operators who are registered with the Ministry of Tourism, Arts, and Culture will obtain financial assistance for a period of three months (although the exact amount was not revealed as of yet). A total of RM85 million will be allocated for this.
The government will continue to provide cash aids via the Monsoon Season Assistance initiative, helping to ease the financial burden of 320,000 smallholder farmers who lost their income during the monsoon season. RM190 million will be earmarked for the initiative.
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