PUTRAJAYA, May 30 — Payments under the 1Malaysia People’s Aid (BR1M) will continue but the scheme will be converted to one named "Cost of Living Aid”, said Tun Dr Mahathir Mohamad.

The prime minister did not provide further details of the new programme beyond saying it will be "very different” from the BR1M introduced by the Najib administration.

He said the replacement was among moves by his government to strengthen the country’s economy and reduce costs.

"It has been only one week since the Cabinet met, but we have discovered there are more issues left behind by the previous government.

"We need to focus to ensure our economic position is managed more carefully so that we can reduce government expenditure,” he said.

Dr Mahathir said the Pakatan Harapan (PH) administration had not purposely reduced spending, but a lot had been wasted and unnecessary expenditure has to be cut.

In response to a question on when the "Cost of Living Aid” will be handed out, Dr Mahathir replied June 6.

On Saturday, Finance Minister Lim Guan Eng announced the distribution of the aid just before Hari Raya.

This will be the second payment of the people’s aid. The previous payment was issued in February this year.