LETTERS: DUE to loss of jobs and income because of the Covid-19 pandemic, the hardcore poor and Bottom 40 (B40) households would prioritise spending on basic needs to cope with the rising cost of living.
Thus, Bakul Prihatin Negara was implemented to address deficiencies in the diet and nutritional needs of poor households. A typical food basket would contain rice, salt, sugar, flour, vermicelli, soy sauce, canned sardines, biscuits and coffee.
However, the basket should also include eggs, fruits and vegetables and essential items, such as diapers, milk formula, sanitary napkins and pharmaceutical necessities (such as Panadol) for a more balanced provision.
For some of the self-employed who are not e-hailing drivers and delivery riders, the movement restrictions have constrained their ability to go out and earn a living.
Even though the government introduced numerous stimulus packages for the self-employed, it is limited to one-off assistance that covers full-time e-hailing drivers and taxi drivers only.
Other than that, the aid is generic and covers the wider recipient target groups.
The self-employed are typically neither not automatically covered by work-related social protection, such as health insurance and the Employees Provident Fund (EPF), nor entitled to employment benefits, such as paid vacation and sick leave.
But the self-employed and those in the gig economy can now contribute to the EPF under the Voluntary Contribution with Retirement Incentive (i-Saraan), whereas housewives can enjoy EPF's facility under i-Suri.
However, according to a survey by the United Nations Children's Fund Malaysia, 45 per cent of employed heads of households are not registered with the EPF and the Social Security Organisation.
The situation is 50 per cent for female heads of households and 92 per cent for disabled heads of households.
EMIR Research proposes the following policy recommendations to provide support for the low-income group and the poor:
EXPAND the Multidimensional Poverty Index (MPI) to include a new dimension, that is, pension or retirement protection.
In addition, add new indicators under Living Standards, such as Internet access (wifi technology coupled with broadband connectivity).
Internet access should by now be regarded as a constitutional (if ever-so implicitly) basic right.
Indicators under Living Standards should be expanded to include — by default — government quarters and low-cost flats, and whether the unit is rented or (privately) owned.
INCREASE the statutory retirement age to 65, as part of the plan for the accumulation of retirement savings; and,
INTRODUCE a Basic State Pension (BSP) targeted at the B40 — employed (private sector) and self-employed — conditional on outstanding EPF accounts by retirement age being below a certain amount.
The BSP (to be paid out monthly, as the name implies) could be funded by taxes.
Otherwise, Bantuan Warga Emas could be expanded and reoriented to be more comprehensive and universal in coverage, both in terms of payment and recipients.
Or implement a compulsory contributory social insurance pension scheme that pays out a deferred annuity (monthly payment) indexed to future inflation, as proposed by Khazanah Research Institute.
It is high time that we also move beyond the MPI as well as an over-reliance on the EPF.
Lastly, the government should adopt the Poverty Line Income methodology for its welfare cash disbursement and distribution.
JASON LOH AND AMANDA YEO
EMIR Research
Kuala Lumpur
The views expressed in this article are the author's own and do not necessarily reflect those of the New Straits Times