More BR1M, no KR1M, that’s Ameer’s aid formula

New federal government is urged to make changes so that people who get aid payments will spend it on necessities.

Ameer Ali Mydin, whose company used to run KR1M shops, calls for a better way to help the less well-off.

PETALING JAYA: The boss of Mydin supermarkets has called for the BR1M social aid scheme to be retained and improved, so that the people spend the money on necessities, instead of more government subsidies being spent on the KR1M low-price shops.

Ameer Ali Mydin, managing director of the Mydin chain, said the Bantuan Rakyat 1Malaysia initiative, a brainchild of former prime minister Najib Razak, was a better way to help poorer people than the Kedai Rakyat 1Malaysia shops where goods are sold at lower prices.

The KR1M initiative was launched in 2011 with the Mydin chain as the main operator. Mydin later withdrew from KR1M, and the government then brought in the Tunas Manja Group and KK Super Mart as its partners.

Ameer said the idea of providing reasonably priced goods to those in the lower income group was a noble objective.

“But it’s very difficult to implement from a business perspective as it just isn’t sustainable. The market is very competitive and you’re competing with many other supermarkets and hypermarkets; how much lower can the prices go, and who will pay for it?”

Ameer said that a large number of shops was needed to cater for poorer people, but even 2,000 stores across the country would not be enough. He said 1,000 shops would be required in the Klang Valley alone.

To be successful, KR1M would need large government subsidies. By comparison, targeted aid such as BR1M was a better option for the government, as people could spend the money on what they felt was necessary.

“I think the Pakatan Harapan government should continue BR1M, but perhaps redefine the target group to make sure those who really need it are the ones who get it.”

BR1M aid payments should be made every month instead of in one lump sum, he said.

“When people get an influx of cash, they might spend it foolishly on things they don’t really need. Those who know they will soon receive RM2,000, say in a month’s time, may be tempted to splurge now. But if you give them a couple of hundred a month over a year, they are more likely to spend it on normal expenses.”

Ameer said the new government could also look into a scheme similar to the privately-run MyKasih programme in which people’s donations are used by MyKasih, working with government and welfare agencies, to provide a monthly allowance to a member of a needy family.

The family member can then use their MyKad to buy commodities such as rice, bread or flour or other specified items. Such a programme would ensure that only those who are really in need would received aid which would be spent on necessities. -FMT