Former economy minister Rafizi Ramli has dismissed claims that RM750 million of public funds was spent on vending machines under the People’s Income Initiative (IPR).
Responding to Human Resources Minister R Ramanan’s criticism of the initiative, Rafizi said the attack was misguided and based on inaccurate information.
“I could sue and win outright. But surely we cannot spend our lives going in and out of court whenever someone persistently attacks us,” he said.
The Pandan MP was referring to Ramanan’s remarks on April 5, where the latter advised Prime Minister Anwar Ibrahim to “carefully choose” an economy minister.
“I also apologise to the (PKR) president. I have to advise you on one thing. Next time, when appointing an economy minister, choose wisely.
“RM750 million used for vending machines to sell nasi lemak. Our economy is currently like this, but (funds are) used in that way, and then he (Rafizi) wants to issue advice,” Ramanan had said at the Johor PKR Congress.
His remarks against Rafizi at the event had also sparked an outburst from Pasir Gudang MP Hassan Abdul Karim, who was in attendance.
Fund allocation breakdown
Contrary to Ramanan’s claim, Rafizi explained that under the 12th Malaysia Plan launched in 2021, RM1.5 billion was allocated until 2025 for poverty eradication, of which half, or RM750 million, was channelled towards various IPR initiatives.
Elaborating, Rafizi said the initiative, which he launched in 2023, comprises three components: Intan for group farming, Insan for food entrepreneurship, and Ikhsan for service workers.
“The breakdown is approximately 50 percent for Intan - as opening land for modern farms costs millions per project - 30 percent for Insan, and 20 percent for Ikhsan.
“Ramanan’s claim that RM750 million was spent on vending machines is clearly absurd,” he said.
On the vending machine component under Insan, Rafizi said the government pays RM700 per month per participant, with a target of 4,900 participants over three years, amounting to RM82 million.
“But this RM82 million will continue to benefit future participants because the machines will remain in strategic locations, generating thousands of ringgit monthly.
“It is similar to the government building shop lots nationwide, but at a lower cost,” he added.
Teaching people to fish
According to Rafizi, past programmes had failed to achieve long-term income stability as recipients bore all business risks, often leading to failure and wasted public funds.
“In the end, tens of thousands of ringgit given to start businesses often resulted in failure, and public funds were wasted.
“Five years later, the government would again announce another RM1.5 billion to help the poor,” he said, describing the situation as a common problem of the right policies failing due to ineffective implementation.
To address this, he said the IPR was designed with a different approach, focusing on generating stable income rather than distributing aid.
He said the programme requires assets to remain government-owned, limits participation to two years per cohort, and sets a target of at least RM2,000 in monthly income for participants.
Participants, he added, do not receive direct cash assistance but earn income through operating government-owned assets.
Rafizi pointed out that the IPR has been well received by the public, warning that criticism of the programme could invite backlash.
He also noted that the initiative received praise from Anwar and was included in key policy and budget speeches, adding that attacking it was akin to belittling the prime minister’s own assessment.
Continued criticism
The former PKR deputy president acknowledged that he expects continued criticism, including from within the government, over his stance on governance and related issues.
“If you want to tarnish my name as the most failed minister, do not go so far as to undermine the contributions of a key ministry like the Economy Ministry,” he said.
Last Friday, Rafizi revealed that PKR had sent him a second show-cause letter, in which the party’s disciplinary board accused him of infractions that supposedly tarnished Anwar’s and the party’s names.
Rafizi’s detractors, both within and outside PKR, have responded to his mounting criticisms against the party with calls for scrutiny, with some urging for an MACC probe into alleged misuse of public funds - Mkini
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