Ground-up or Trickle down?

July 31, 2025

Ground-up or Trickle down?

Someone wrote in a WhatsApp chat platform recently, “We always forget that the responsibility of the government is to collect tax and build infrastructure and not to give cash handouts. The demand from the opposition is just the opposite..”

My answer explains that is the traditional mindset we have long been conditioned to accept—yet it reveals only one side of the coin.

Infrastructure such as skyscrapers, except more public hospitals, hold little relevance for the B40, who must survive hand to mouth. Though the model does offer monthly welfare benefits in the form of cash payout to eligible recipients, these are often overlooked despite being built into the framework.

By contrast, in a nation needing economic stimulation, injecting its surplus funds directly into the economy is a far more effective way to boost GDP. If the country economic growth is stagnant, it may eventually enter into a recession.

This method of giving everyone RM100 ensures a ground-up distribution of resources—benefiting all layers of society. Those who do not need the payout, it will be redistributed again.

In a trickle-down economy, particularly when used in the past during former prime minister Dr Mahathir Mohamad’s “golden” era to justify white elephant projects — or mega projects, in short, — the advantages primarily serve the elite, with little return for the broader populace. While such models may result in job creation, they consistently fall short in terms of inclusivity.

In Singapore, prudent economic management ensures that every cent invested yields a return. Yet even there, surplus funds are redistributed to citizens in the form of cash grants worth several hundred dollars—empowering individuals to contribute to economic growth through spending.

I managed to obtain some quick answers from Microsoft co-pilot:

🇸🇬 In 2025, the Singapore government disbursed cash payouts ranging from SGD $350 to $850 to eligible adult citizens as part of its Assurance Package, aimed at cushioning the impact of inflation and the GST hike A. The exact amount depended on factors like income level and property ownership.

💰 Additionally, senior citizens received $200 to $300 under the Seniors’ Bonus, and SG60 Vouchers worth $600 to $800 were distributed in July to mark Singapore’s 60th birthday.

I hope this helps to clarify the rationale behind the “free money” policy practised by Prime Minister Anwar Ibrahim’s Madani government. For him, it’s a delicate balancing act—complemented not only by efforts to stimulate GDP through infrastructure initiatives like MRT Line 3, but also by strategic sourcing and approval of foreign direct investments into the country.

Co-pilot has provided me with a list of infrastructure projects under Prime Minister Anwar Ibrahim’s Madani government.

Malaysia has shifted its infrastructure focus toward inclusive, essential, and sustainable development, moving away from mega projects unless they serve strategic needs. Here’s a breakdown of key initiatives:

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🏗️ Major Infrastructure Developments

1. Kota Madani Megaproject (Putrajaya)

• RM4 billion smart township spanning 102 acres A B

• Includes 10,000 vertical government quarters for 35,000 civil servants

• Features AI-powered systems, green mobility, vertical schools, and solar infrastructure

• Built under a Public-Private Partnership (PPP) using the BLMT model

2. Sabah-Sarawak Link Road (SSLR) Phase 2

• RM7.4 billion allocated for four work packages

• Aims to improve connectivity between remote regions in East Malaysia

• Two packages already awarded; remaining to be finalised by year-end

3. Airport Expansions

• RM253 million allocated for upgrading Tawau Airport (Sabah) and Miri Airport (Sarawak)

4. Sarawak Cancer Centre

• RM1 billion investment to enhance healthcare access in East Malaysia

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🚰 Basic Infrastructure Priorities

5. Village Connectivity & Utilities

• RM2.9 billion allocated for rural infrastructure C• RM1.8 billion for village roads (e.g. Kota Belud, Pasir Puteh, Kuala Lipis)

• RM500 million for clean water and electricity to 5,150 homes in Sabah and Sarawak

• RM350 million for bridges and streetlights

6. Slope Repairs & Geotechnical Studies

• RM250 million to repair dangerous slopes nationwide

• RM21 million to address sinkholes in Perak, Kedah, and Perlis

• RM10 million for soil studies in KL’s Golden Triangle

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🏫 Education & Healthcare Infrastructure

7. School Upgrades

• RM2 billion allocated for nationwide school maintenance

8. Clinic Upgrades

• Annual increase in funding: RM100M (2023) → RM150M (2024) → RM300M (2025) C

9. Hospital Maintenance

• RM1.35 billion for repairing hospital toilets, wards, and outdated facilities

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🚧 Road Maintenance & State-Level Support

• RM2.8 billion for federal road maintenance

• RM5.5 billion via MARRIS for state roads

• RM12.6 billion development budget for Sabah and Sarawak combined

To further this line of thought, we turn to the mega projects initiated during Mahathir’s era. These grand undertakings largely bypassed the B40 and M40 groups, with major highway projects still being paid for to this day.

Such developments contributed to an overheated economic boom, compelling Bank Negara to hike the Overnight Policy Rate (OPR) to unprecedented levels. This resulted in steeper monthly repayments for bank loans, putting pressure on ordinary Malaysians.

Ultimately, Malaysia emerged as one of the wounded tigers during the Asian Financial Crisis—its growth unsustainable, driven by spending sourced from petroleum revenues that yielded questionable returns on investment.