IPOH (THE STAR/ASIA NEWS NETWORK) - Cash handouts for Malaysia's lower-income groups should be stopped because there are elements of corruption in it, Minister for Economic Affairs Mohamed Azmin Ali said on Sunday (Aug 26).

"Giving out cash handouts like this should stop because it is considered a politically-motivated bribe to gain support," he told reporters in Ipoh, referring to payments under programmes like 1Malaysia People's Aid, known by its Malay acronym BR1M.

Prime Minister Mahathir Mohamad had said, in an interview with The Malaysian Insight published on Saturday, that BR1M payouts would first be reduced then gradually phased out altogether.

An estimated 7.2 million people receive the aid, which ranged from RM450 (S$150) to RM1,200 in 2017. It was first introduced in 2012 under the former Barisan Nasional administration. The Pakatan Harapan government renamed the programme Bantuan Sara Hidup after it swept to power in May.

Datuk Seri Mohamed Azmin said stopping the payments was the right move.

"Even Prime Minister Tun Dr Mahathir Mohamad has comprehensively stressed that such form of politically-driven handouts should no longer happen," he said.

When asked, Mr Mohamed Azmin denied that such a move would negatively affect the people, as the country's new economic direction would put the focus on making people's lives better.

"The prime minister and the Cabinet are coming up with different approaches and initiatives for the country's new economic direction, which will be presented and debated in Parliament in October.

"It will focus on prospering the people instead of bribing and taking them for granted.

"With that, I believe the people will have greater economic power to ease the costs of living," he said.

When asked if the government would replace BR1M with a new system for providing aid to the needy, Mr Mohamed Azmin said that the possibility was being studied, adding that his ministry would also present its views and new initiatives on that in Parliament.

The minister also noted that the government was drafting the half-term review for the 11th Malaysia Plan (2016-2020), which will be presented in Parliament in October.

"Not only will we see the success and performance of RMK-11 in the last two years, but we will also add in new directions for Malaysia's economy, according to Pakatan's Buku Harapan election manifesto," he said, using the Malay acronym for the 11th Malaysia Plan.

"After winning the election, this is the time for Pakatan to enter the second phase of reformation, where delivery and implementation of promises for the benefit of the people are of paramount concern," he added.

When asked about the upcoming Parti Keadilan Rakyat (PKR) polls where he and PKR vice-president Rafizi Ramli are both vying for the post of deputy president, Mr Mohamed Azmin said it shows that "democracy in PKR is strong and stable".

"We accept in good faith any member who wants to offer their services to the party… we should respect and uphold the democratic process in the party," he said.

Mr Mohamed Azmin believed party members would evaluate him appropriately based on his credibility and experience both in the party and the government.

"I leave it to the wisdom of every party member and I think my report card reflects the actual situation and it is up to the party members to determine the future of this party," he said.