Government To Diversify BR1M Mechanism To Encourage Entrepreneurship

The government wants to encourage more entrepreneurs with a new study to diversify the 1Malaysia People’s Aid (BR1M) to enable its recipients to start their own businesses and become entrepreneurs, said Treasury Secretary-General Tan Sri Dr Irwan Serigar Abdullah.

This is part of the government’s effort to improve the cash handout mechanism and its ‘upwards mobility’ plan for the Bottom 40 group.

“We will find mechanism on how BR1M can be implemented efficiently.

“Also studying how BR1M can be used to provide training for them. Use it wisely so they can start a market (business), etc. We want to make sure before implementing,” Irwan was quoted as saying in a report by English-language daily The Malay Mail.

As announced in Budget 2017, the government is currently in the midst of implementing the process of allowing BR1M recipients who do not own cars to use their BR1M cash to pay for the down payment of a Proton Iriz to become Uber drivers, he added.

In the announcement last year, Prime Minister Datuk Seri Najib Razak said there would be a special RM4,000 rebate for BR1M recipients to purchase Proton Iriz and become Uber drivers.

“Uber drivers, for example those who work part-time, can earn over RM4,000 to RM7,000, depending on the hours they drive. This way, the government is encouraging poor citizens to come out of the B40 category,” Irwan said about the programme, which will be implemented this year.

In 2017, households earning less than RM3,000 per month will receive RM1,200 of BR1M cash. This year, the allocation for BR1M is RM6.8 billion, aimed at seven million households.

[Source]