PETALING JAYA: Datuk Seri Najib Tun Razak (pic) has criticised Datuk Seri Azmin Ali for his lack of understanding of the 1Malaysia People's Aid (BR1M) cash handout scheme to help those in the low-income (B40) group.

"Yesterday in the Dewan Negara, the Economic Affairs Minister Datuk Seri Azmin Ali made a strange statement claiming that BR1M was a bribe and the scheme was evidence that the Barisan Nasional government had failed to help the B40.

"The reason given by Azmin is that the Barisan government had failed to upgrade the B40 group to M40.

"I believe the minister is confused about economic concepts and his mathematics," said the former prime minister on his Facebook page on Wednesday (Sept 5).

Najib's response came following a Malay Mail report in which Azmin criticised the previous administration, saying BR1M had failed to empower the B40 group despite the government forking out RM8bil annually for the scheme.

Najib clarified that BR1M was not meant to eradicate poverty, adding that it schemes under the Welfare Department and 1Azam programme were meant for that purpose.

"The main purpose of BR1M is that it is a redistribution of income method from the top 60% of the richest group to the bottom 40%, and it is also an economic driver, especially in the rural areas or small towns.

"That is the main purpose, and it is important to reduce the income gap in Malaysia between the rich and the poor, the city and the rural area," he said.

He added that the Goods and Services Tax (GST) that was obtained from the rich who had avoided paying taxes and from the black economy, was redistributed and given back to the B40.

Najib said the "direct cash transfer" concept and the return of GST money to the B40 was not a new concept.

He said even Singapore had a similar scheme which was called "GST voucher" paid to its citizens every month.

"In 2018, Singapore paid S$1bil (RM3bil) to 1.6 million of its citizens earning S$28,000 (RM84,000) a year and below, which will average out to S$625 (RM1,875) per person.

"I would like to ask Azmin: Has the Singapore government failed or have they bought and coddled their citizens too as they have a scheme like BR1M?" he asked.

Touching on B40, Najib said being in the group meant that they were categorised as those earning in the bottom 40 per cent. Hence, he said, it did not mean that if everyone in the B40 upgraded into the M40 group, then the B40 group would no longer exist.

He said even if the B40 earned RM4,000 a month, but the earning potentials of Malaysians improved, there would still be a B40 classification, as then they would be compared to those that earned RM8,000 per month.

"At any time, the B40 group will always exist. This is a basic mathematics concept," said the former prime minister.