THE floods in eight states have destroyed homes, vehicles, livestock, farms, farming equipment, etc.
Against the backdrop of chaos and a rather lacklustre response from the administration, the quintessential Malaysian spirit of #kitajagakita once again shone through. Many Malaysians uncalculatingly lent a helping hand to the flood victims.
People who were left with damaged houses, vehicles, furniture and electrical appliances have to endure the double whammy of the Covid-19 crisis and the flood disaster.
They have been struggling to put food on the table due to a reduction in income and savings caused by Covid-19 lockdowns. The floods exacerbated the situation by constraining their ability to go out to work as their vehicles were damaged.
The federal and state governments have introduced numerous initiatives to help them. However, folks have complained that they did not receive any cash handout after putting in an application more than a week before.
One person expressed frustration that some residents, including her, were not allowed to get food and shelter at an evacuation centre as they did not live in the area.
Each flood-hit household in Selangor is eligible to receive RM2,000 in one-off financial assistance — RM1,000 from the federal government via Bantuan Wang Ihsan and another RM1,000 from the state government.
If we were to do a simple calculation (i.e. RM2,000 divided by five in a family divided by 30 days), each family member merely has RM13.33 to survive on per day.
It would not be sufficient for a family to navigate through the flood crisis. They have to purchase basic necessities ranging from food to toiletries, clothes, gadgets and pharmaceuticals.
Still, flood victims can apply for an interest-free personal loan of up to RM5,000 from a bank to buy replacements for household equipment and furniture, with repayment starting after six months.
Even though the loan scheme provides some breathing space, the people still have to pay off accrued expenses after six months. If they cannot repay these in the specified time frame, they will fall deeper into poverty and debt.
There are some who are clamouring to be allowed to withdraw EPF savings under an extension of the i-Citra scheme.
However, Prime Minister Datuk Seri Ismail Sabri Yaakob and Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz are resisting such a move, calling it impractical and unsustainable.
We would also just add that if the populist call for i-Citra to be extended is heeded, the affected contributors or account holders will not be able to enjoy the compounding interest rate for their EPF savings.
Instead, the prime minister has announced flood victims would receive as much as RM61,000. This is precisely to ensure that they do not have to dip into their EPF savings.
The criteria to withdraw EPF savings in an emergency should not be loosened — but in fact tightened over the medium to long-term.
Both writers are part of the research team of EMIR Research, an independent think tank focused on strategic policy recommendations based on rigorous research
