IPOH: They appreciate the gesture, but consumer groups have voiced reservations about the state government's RM1 million handout to the hard core poor.

"It is an extremely meaningful gesture in times of runaway inflation for those who do not know where their next meal is coming from," said Ipoh Rate payers and Taxpayers Association deputy president Victor Sankey.

But he said funds should be invested in breaking the cycle of poverty by creating jobs and keeping children in school.

Some 5,000 families will each receive RM100 cash and RM100 worth of groceries to keep them going for a month.

Ipoh City Watch president Chan Kok Sun said handouts are helpful in natural disasters, but more research must be done on how best to help the hard core poor.
"I'm sure they're sincere in their move to create a welfare state, but the mechanics of the implementation must be backed with facts and figures.

"More time has to be spent on drawing up result-oriented, long-term policies," said the former auditor in the Auditor-General's Office.

"I'm not comfortable with the idea of a one-off handout. The root cause of poverty has yet to be identified."

He cited the Ladang Rakyat scheme run by the State Agriculture Development Corp as a good example of helping the poor in the long term, by involving them in the oil palm industry.

On Thursday, Menteri Besar Datuk Seri Mohammad Nizar Jamaluddin said the state government would distribute RM1 million to families who earned less than RM420 a month to help them with rising food prices.