The Ministry of Finance has shared its updated report on some of the financial assistance the government and GLC’s have thus far provided to address the flood disaster. Although many Malaysians feel the support came in slow and it’s still far from what the public expects, let’s take a look at the actions Prime Minister Ismail Sabri and his cabinet have delivered thus far.
Among the initiative was the Bantuan Wang Ihsan for flood victims affected by the Northeast Monsoon which MOF says is an improvement from last year.
First, the BWI amount was increased from RM500 to RM1,000 for each household, secondly, the RM1,000 has been expanded to include to those not only housed at the Temporary Evacuation Centers but also to those not at these shelters but are victims of the flood. They can also now claim compensation every time a disaster strikes compare to previously which was only once. And if an unfortunate death occurs, the financial assistance to the victim’s next of kin is increased from RM5,000 to RM10,000.
The contention among the people was when funding took longer to reach them through the various levels and agencies that oversee disaster, in this aspect NADMA has channeled the initial allocation of RM26.9 million to all affected states and will be given adequate allocation to meet actual needs. An initial allocation of RM100 million has been provided for post-flood rehabilitation efforts, including the clean-up and repair of housing areas and public infrastructure. To expedite and facilitate the implementation of post-flood rehabilitation work, MOF issued guidelines on the relaxation of procurement methods for repair work on infrastructure and public facilities damaged by floods.
In addition a provision of RM100 million fund under Bank Simpanan Nasional MyRinggit-i FLOOD: BSN is offering flood victims financing of up to RM10,000 (compared to RM5,000) at 0% with a 6-month moratorium on repayment and further payments back in a period of up to 3.5 years.
SME and MSME
Separately, there will also be an increase in funding from RM200 million to RM500 million for the Disaster Relief Facility by Bank Negara Malaysia. This loan facility will be provided through commercial banks for Small and Medium Micro Enterprises (PMKS) to finance the replacement of equipment damaged by floods as well as working capital. Financing up to RM500,000 will be provided for SMEs; while micro-entrepreneurs can borrow up to RM75,000.
The financing period is up to 5 years including a moratorium on repayment of 6 months. The financing rate is up to 3.5% per annum including guarantee costs. Applications can be made through commercial banks.
While we can sit and argue on why the government reacted so slowly, but the important fact is how the victims can be helped and what needs to be done so that these victims can regain their lives. The government is providing the aids and expanding its support to all communities including business owners and more so moving expediently which is crucial at this juncture.
Now to ensure the financial aid reaches the victims, abuse of power, or politician trying to earn brownie points from handing out these aids. Resource should be focused only on the recovery effort, the report card can be used at the ballot boxes.
