The linkage of government assistance programs towards digital and financial well-being of small household income families in Urban Area: Lesson from COVID-19 pandemic

The COVID-19 pandemic and the Movement Control Order (MCO) have had a negative impact on the financial well-being and digital well-being of B40 or small household income families in urban areas. In responding to the crisis, the government had launched multiple assistance programs to assist the group. Hence, the study intends to examine the relationship of government assistance towards digital and financial well-being of the group. Utilizing survey, the study involved 417 respondents living at the Public Housing Project (PPR) residential areas in Kuala Lumpur—the capital of Malaysia. The data was analyzed using Smart PLS and the key findings were (1) government assistance programs significantly affect the digital well-being and financial well-being of B40 urban families. However, there is no significant relationship between financial well-being and digital well-being. Besides, the Importance-Performance Analysis (IPA) indicated that the importance of government assistance programs towards digital well-being performance is higher than financial well-being. The assistance programs offered by the government plays essential role to ease the digital and financial constraints of B40 urban families during a difficult time. Reforms to the government assistance programs, the empowerment of digital aid packages, and the enhancement of social security net initiatives for B40 urban families are necessary to enhance the group’s preparedness and resilience in the face of new shocks in the future.