Malaysia

What Malaysians can look forward to in Budget 2024

Rahmah Cash Aid a most effective incentive, says geostrategy expert.

Updated 2 years ago · Published on 01 Jan 2024 3:38PM

What Malaysians can look forward to in Budget 2024
Under Budget 2024, the maximum rate for the Rahmah Cash Aid (STR) will increase from RM3,100 to RM3,700 this year, while the minimum STR rate for youth will be raised from RM350 to RM500. – The Vibes file pic, January 1, 2024

WITH a primary focus on boosting economic growth and improving the people’s standard of living, Budget 2024 introduces various initiatives and incentives for Malaysians to enjoy and benefit from throughout this year.

The government’s move to introduce the Central Database Hub (Padu), which will be launched by Prime Minister Anwar Ibrahim tomorrow, will ensure government aid reaches its target groups without marginalising any party.

Geostrategy expert Prof Azmi Hassan said Budget 2024 would provide various incentives to the people, highlighting the Rahmah Cash Aid (STR) as the most beneficial among them.

“In line with the Budget 2024 objective, which is to empower the people, I find that STR stands as the most effective incentive because people currently need cash to spend on their necessities.

“From an economic perspective, when people receive STR, they will spend the money, thus creating more demand for goods and fostering a favourable economic cycle,” the senior fellow of the Nusantara Academy for Strategic Research told Bernama.

Azmi hoped if this year’s economic performance outshines the previous year’s, the government would consider increasing the STR rate so it could continue to reduce the people’s burden.

Under Budget 2024, the maximum rate for STR will increase from RM3,100 to RM3,700 this year, while the minimum STR rate for youth will be raised from RM350 to RM500.

Universiti Kuala Lumpur Business School economic analyst Assoc Prof Aimi Zulhazmi Abdul Rashid said Budget 2024 focused on the government’s fiscal policy to stimulate the domestic economy and reach the 4-5% gross domestic product target for this year.

“The budget is designed to focus on domestic economic growth through the provision of aid to micro, small, and medium enterprises and cash assistance to help people deal with the cost of living, which will provide a direct economic injection into the domestic economy,” he said.

He said the implementation of targeted subsidies through Padu could prevent wastage and ensure government aid was distributed to deserving groups in a fair and equal manner.

“The unity government has implemented targeted subsidies in stages, beginning with the haj quota and electricity tariffs for domestic and commercial users last year, and will continue to implement targeted subsidies for other essential items in 2024.

“This demonstrates the government’s strong commitment not only to restructuring the supply chain, but also to eradicating cartels and curbing rampant smuggling,” Aimi said.

The government has introduced various incentives under Budget 2024, tabled by Anwar in October, such as the early incentive payment of RM2,000 to all civil servants of Grade 56 and below, including those on contract, and the capping of registration fees for admission into public universities at RM1,500.

Other incentives were the RM1.2 billion allocation in various forms of assistance for people with disabilities, including aid for caregivers of the chronically ill and bedridden, and unemployment benefits. – Bernama, January 1, 2024

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