How cash transfers boost economic growth, income for Malaysians

Free Malaysia Today

Governments around the world are using cash handouts to stimulate economic growth. Direct financial support allows for higher household spending, which in turn boosts local businesses and drives economic activity. In Malaysia, programmes like Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (Sara) are examples of how targeted cash transfers not only help the B40 group meet their needs, but also act fuel a wider economic recovery by encouraging consumption and creating job opportunities.  Read More:   Laporan Lanjut:   Free Malaysia Today is an independent, bi-lingual news portal with a focus on Malaysian current affairs.    Subscribe to our channel - http://bit.ly/2Qo08ry   ------------------------------------------------------------------------------------------------------------------------------------------------------ Check us out at https://www.freemalaysiatoday.com Follow FMT on Facebook: https://bit.ly/49JJoo5 Follow FMT on Dailymotion: https://bit.ly/2WGITHM Follow FMT on X: https://bit.ly/48zARSW  Follow FMT on Instagram: https://bit.ly/48Cq76h Follow FMT on TikTok : https://bit.ly/3uKuQFp Follow FMT Berita on TikTok: https://bit.ly/48vpnQG  Follow FMT Telegram - https://bit.ly/42VyzMX Follow FMT LinkedIn - https://bit.ly/42YytEb Follow FMT Lifestyle on Instagram: https://bit.ly/42WrsUj Follow FMT on WhatsApp: https://bit.ly/49GMbxW  ------------------------------------------------------------------------------------------------------------------------------------------------------ Download FMT News App: Google Play – http://bit.ly/2YSuV46 App Store – https://apple.co/2HNH7gZ Huawei AppGallery - https://bit.ly/2D2OpNP  #FMTNews #CashHandouts #EconomicGrowth

Transcript

00:00In recent times, governments around the world have used cash handouts

00:04to support people during tough times.

00:07For example, during the COVID-19 pandemic,

00:10the U.S. government made stimulus payments,

00:12known as economic impact payments,

00:14to help affected individuals and families.

00:18But well before that, in 2003, Brazil introduced Bolsa Família,

00:22a social welfare program credited with reducing poverty and inequality

00:27among low-income families

00:29by providing them with financial aid.

00:32So how do cash handouts work to benefit both the rakyat

00:35and the Malaysian economy?

00:37Imagine the economy as a garden,

00:40with plants representing the people and businesses,

00:42and water symbolizing the availability of cash,

00:45which nourishes these plants and helps them grow.

00:49Not all plants will grow at the same rate.

00:51Some are bound to struggle due to a lack of water.

00:55These struggling plants represent individuals and families

00:58in the B40 group who may be unable to meet the basic needs

01:02of their households on their own.

01:05Without a sufficient supply of water,

01:07these plants are likely to wither,

01:09affecting not only themselves,

01:11but the beauty of the entire garden.

01:14Cash handouts are very much like watering these struggling plants.

01:18They allow struggling members of the community

01:20to spend on their essential needs,

01:22like food, housing and healthcare.

01:25This, in turn, ensure businesses see more activity.

01:29So what starts as a simple cash handout

01:31grows into something bigger,

01:33helping the entire community.

01:36This is called the multiplier effect.

01:39Economists estimate that for every RM1 of cash aid given,

01:42RM2.52 is generated for the local economy.

01:47In Malaysia, programs like Sumbangan Tunai Rahma

01:50and Sumbangan Asas Rahma

01:52are designed to water the plants in our economic garden

01:55that need help the most.

01:58But the impact of these programs does not stop there.

02:01The increased spending creates a ripple effect,

02:04which helps local businesses stay open.

02:08As more people spend money,

02:09more businesses recover,

02:11spreading growth across the community.

02:15Cash handouts help more than just the people who receive them.

02:18They strengthen the entire economy,

02:20creating a cycle of growth.

02:24Natasha Bust, FMT News.

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