Social welfare v self interest

So this is the conundrum that we have to put out there for Malaysians to ask themselves.

Is the state obligated to help someone earning close or more than RM10,000 a month and still living in poverty?

In the last week, The Malaysian Insider published a very interesting tale of woe regarding a man with a family of 15 children living in a single bedroom government-subsidised flat in Sentul.

The man in question was lamenting his life, even detailed his work as a snack seller at Dataran Merdeka and how his kids are now helping him to the point of having to sleep in shifts.

In addition to this, he is also taking care of his wife who is disabled and mentally handicapped, adding yet another burden on the wallet.

Yet what was more telling about the entire piece is the money points he highlights throughout the article. Here is a man feeding 17 mouths (including himself and wife) by earning some RM300 to RM400 daily, and receiving money from the relative zakat association to the tune of RM700 a month.

If these figures are correct, he is actually earning RM9,700 to RM12,700 a month, yet living in relative squalor and poverty. The article also said that once he is through giving money to his children and extended family, he is left with RM60 or RM50 a day.

Even with this figure, it totals RM1,500 to RM1,800 a month.

He does not own a car. In fact, the article points out how he takes the LRT to and from his selling ground. In addition to this, he has not paid rental for his flat – RM120 monthly – for two years.

Now personally looking at this tale there are a few things we wish to say. Among the things we would want to say first is who the heck has 15 kids in this day and age when earning even RM10,000 and caring for three kids is a household budgeting miracle?

And at the same time, you can only gauge what the reaction would be if this happened in the Western world, or even in more developed nations.

I would actually point this news at Women, Family and Community Development Minister Datuk Seri Rohani Abdul Karim and ask if this is what she meant when she asked Malaysians to have more kids.

The second thing we would want to look at is to delve further into what exactly are the kids themselves spending on, averaging RM16.70 to RM23.30 a day. At the same time, we would also be curious as to how much is being sent back to the extended family.

It honestly sounds like a case study for those studying actuarial science and for those in the auditing profession, no doubt, but this is the life of a Malaysian living in abject poverty in this day and age right in Kuala Lumpur.

And yet, from a statistical point of view, this guy – with the income he is making – is actually earning enough to make it to the top 5% of the income earners of Malaysia.

This is the conundrum if Malaysia ever chooses to become a proper welfare state.

Another case raised during the Budget 2016 period on social media by one lady who highlighted that while she was illegible for the 1Malaysia People’s Aid (BR1M) due to her income compared to her colleague, it was harder for her to due to having to raise three kids while her colleague had none.

So should BR1M and welfare take into account the number of children per household? It goes back to a point that Malaysians have to decide.

Should the state bear the burden of raising children directly through cash handouts on top of everything else that it does?

As of now, the federal government has a few mechanisms to assist families which includes the National Higher Education Fund Corp (PTPTN), BR1M even the Department of Social Welfare. There is also the fact that our government has recently announced tax rebates and even exempted most of the earning population from paying up an income tax.

There are also a multitude of state agencies as well, including the religious zakat organisations and their baitulmals. There are also a multitude of non-government organisations and individuals providing assistance as well.

Yet, the burden ultimately lies on the federal government and what policies to enact. Yes, we want free education, we want better healthcare and even better direct transfer welfare plans. But at what cost?

Are we willing to pay taxes similar to the developed world, too? In this day and age, even the oil profits are not enough to add on to any of these programmes.

So, Malaysians. Can we pay more taxes to ensure that the RM10,000 earning family of 17 can be raised out of poverty?

You decide. – January 5, 2016.

* This is the personal opinion of the writer or publication and does not necessarily represent the views of The Malaysian Insider.