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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