Special financial aid for Terengganu, not other opposition states, is ‘the govt’s prerogative’

Economist says RM500 aid will stimulate Terengganu’s economy, while other opposition states receive no federal funding

8:02 AM MYT

 

KUALA LUMPUR — The government’s decision to fund a Special Aidilfitri Financial Assistance (BKKA) of RM500 for civil servants in Terengganu is primarily an effort to boost the state’s economy.

Mohd Afzanizam Abdul Rashid, chief economist of Bank Muamalat Malaysia Berhad, when contacted by Scoop, said that the funding being limited to Terengganu and not extended to other opposition states is considered the government’s prerogative.

“The significance of this BKKA is that it will stimulate the Terengganu economy as the money will be spent on goods and services. 

“It will undoubtedly have a positive ripple effect on the Terengganu economy.

“Regarding the federal government’s decision to provide it to Terengganu (opposition state excluding Kedah, Kelantan, Perlis), I believe it is the government’s prerogative,” he told Scoop today.

Earlier, the Madani government agreed to fund the Special Aidilfitri Financial Assistance (BKKA) of RM500 to over 14,000 civil servants in the Terengganu state government. 

The Finance Ministry, in a statement, informed that the move followed Prime Minister Datuk Seri Anwar Ibrahim’s visit to Terengganu on March 21, where he also serves as Finance Minister.

According to the statement, the BKKA will be disbursed before Hari Raya Aidilfitri to enhance preparations for the festive celebration.

Meanwhile, for opposition-led states such as Kelantan, Perlis, and Kedah, Perlis has so far announced a Special Financial Aid of RM500 for approximately 1,700 civil servants in the state.

The assistance to civil servants will be paid at the end of this month to civil servants in Grade 15 and below, including officers and contract staff working under the administration of the Perlis state government.

In Kelantan, Deputy Menteri Besar Datuk Mohamed Fadzli Hassan informed that the decision on the provision of a Hari Raya bonus and additional leave for civil servants in the state will be decided at the State Executive Council meeting this week. — March 25, 2025

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