PH urges government to distribute M40 aid through e-wallets

Pakatan Harapan suggests using the e-Tunai Rakyat scheme to distribute aid to the needy.

PETALING JAYA: Pakatan Harapan today urged the government to use e-wallets to manage cash handouts to the M40 group.

Prime Minister Muhyiddin Yassin had announced a RM250 billion economic stimulus package last Friday, which includes cash aid to those qualified.

Noting that the government does not have a database of those in the M40 income bracket, the Pakatan Harapan secretariat council suggested that the e-Tunai Rakyat scheme be used as it has already identified those earning less than RM100,000 a year.

Announced as part of Budget 2020, the E-Tunai Rakyat scheme allowed Malaysians earning less than RM100,000 annually to claim RM30 through e-wallet operators Grab, Boost and Touch ‘n Go as part of the push by the previous Pakatan Harapan administration to encourage the use of cashless payments.

Unlike the B40 group, whose data is available in the Bantuan Sara Hidup (BSH) system, managed by the Inland Revenue Board (LHDN), Pakatan Harapan said no such database exists for the M40 group.

“Not all (M40) taxpayers file their tax returns as a household, and not all those in the M40 category have an income tax file,” said the council in a statement.

“An individual with an income of RM2,500, who is eligible for the aid, may not have a tax file as they do not qualify to pay taxes yet.

“The withdrawal process will also burden several parties and it is clear it has already been a problem for LHDN,” said the council, noting the temporary closure of several aid application services provided by LHDN.

Pakatan Harapan also suggested that sovereign wealth fund Khazanah Nasional be appointed to distribute aid to the M40 group after its success in implementing the e-Tunai Rakyat scheme.