Dr M: BR1M is just like buying votes, won't make Malaysia grow economically

KUALA LUMPUR - Government cash aids are akin to failed socialist and communist policies that will only make people dependent on the government and reduce their competitiveness, Tun Dr Mahathir Mohamad said today.

The former prime minister said increasing average incomes alone will not make Malaysia a developed nation, noting that it would be “even more misleading” when income raises are merely due to government handouts.

“In other words we must earn our income through higher productivity and not through handouts by the government,” Dr Mahathir wrote a blog post titled “BR1M” yesterday, referring to the 1Malaysia People’s Aid programme (BR1M).

“The socialist(s) and communists have tried to improve their people’s incomes through giving them money and making free availability of support facilities to ensure they have a good life. But socialism and communism have failed. They have to resort to free enterprise and hard work,” added the nation’s longest-serving prime minister.

Prime Minister Datuk Seri Najib Razak increased the cash handout for households with a monthly income of RM3,000 and below from RM650 to RM950 next year, under the government’s Budget 2015 that was tabled last month.

The government cash aid has also been increased by RM300 for those with a monthly household income of between RM3,000 and RM4,000, who are set now to receive RM750.

BR1M will be disbursed in three installments spaced out throughout the year.

Dr Mahathir stressed that in Malaysia’s bid to be a high-income country by 2020, it is crucial to focus on education and training to develop knowledge-based industries in order to produce inventors, developers and researchers.

“To be developed we have to be at par with these developed countries in terms of education, technological and industrial knowhow, research and development, industrialised to a high level, commensurate infrastructure and high earned incomes for all,” he said.

The elder statesman also pointed out that Malaysians are willing to endure rising living costs as long as the government spends their tax money on beneficial policies and good governance.

“Certainly they would not want their hard-earned money to be expended on winning popularity for anyone or political parties or administrations,” said Dr Mahathir.

“My primary objection is because handouts on such a scale look too much like bribery. And when this is given near elections or the manifesto promises this, the impression that it is about buying votes just cannot be dismissed,” he added.