The Malaysian Institute of Economic Research (MIER) has urged the government to stop handing out money as a measure to narrow the gap between rich and poor.
MIER executive director Zakariah Abdul Rashid said with Bantuan Rakyat 1Malaysia (BR1M) rising to record levels, it will only fuel inflation and do nothing for productivity.
"Our income does not grow fast enough, our productivity is rising... this creates a mismatch," the MIER economist said at the institute’s quarterly briefing today.
"That's why BR1M is only an ad hoc measure and not a solution," Zakariah (left) said, adding that Malaysian workers were in a precarious spot, not able to climb up the value chain.
He said that on paper, Malaysia looks like a roaring economy, with only 3.3 percent unemployment but a closer look reveals serious structural problems.
Foreign workers, who unofficially accounted for up to a third of the national workforce, kept wages tied down, but contribute to most of the new productivity.
In his report, Zakariah said, with more and more Malaysians receiving the BR1M payment, this populist measure would just be like a "helicopter rain of money".
[More to follow]
MIER executive director Zakariah Abdul Rashid said with Bantuan Rakyat 1Malaysia (BR1M) rising to record levels, it will only fuel inflation and do nothing for productivity.
"Our income does not grow fast enough, our productivity is rising... this creates a mismatch," the MIER economist said at the institute’s quarterly briefing today."That's why BR1M is only an ad hoc measure and not a solution," Zakariah (left) said, adding that Malaysian workers were in a precarious spot, not able to climb up the value chain.
He said that on paper, Malaysia looks like a roaring economy, with only 3.3 percent unemployment but a closer look reveals serious structural problems.
Foreign workers, who unofficially accounted for up to a third of the national workforce, kept wages tied down, but contribute to most of the new productivity.
In his report, Zakariah said, with more and more Malaysians receiving the BR1M payment, this populist measure would just be like a "helicopter rain of money".
[More to follow]
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