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Increase in STR and SARA Allocations Highlights Government’s Commitment to Social Safety Net

Kuala lumpur: The increase in the Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA) allocations from year to year is proof of the government’s commitment to strengthen the social safety net, according to the Ministry of Finance (MoF). Deputy Finance Minister Lim Hui Ying said the aid, whose allocation has been increased to RM15 billion in 2026 from RM10 billion in 2024, is among the key tools to eradicate hardcore poverty and ensure those in the low-to-middle income group can weather the cost of living challenges.

According to BERNAMA News Agency, the programme is in line with the government’s aim to provide targeted assistance, as stated by Lim in response to a question from Datuk Siti Zailah Mohd Yusoff (PN-Rantau Panjang) during a session at the Dewan Rakyat. The question addressed the government’s stance on the effectiveness of SARA in assisting the B40 group and concerns over delayed payments to some recipients in rural areas.

On Oct 10, Prime Minister Datuk Seri Anwar Ibrahim announced that allocations for STR and SARA will increase to RM15 billion under Budget 2026, compared to RM13 billion in 2025, which is expected to benefit nine million recipients. Lim further elaborated that currently, more than 5.4 million monthly SARA recipients under the STR scheme have been recorded, with an annual allocation of RM5 billion.

She mentioned that as of Oct 13, 2025, over 5.34 million of all SARA recipients have used their MyKad to purchase essential goods at registered premises, reflecting an overall usage rate of 98 percent, with total spending amounting to RM3.3 billion. The highest usage rates were recorded in Perlis, Sabah, Sarawak, Kelantan, Terengganu, and Kedah, with 99 percent of MyKad usage claims in purchases at registered retail stores, countering claims of delays in SARA usage in rural areas.

To expand access, the number of SARA Partner Stores has also increased to 8,400 as of Oct 13, covering supermarkets, grocery stores, cooperative shops, and mini markets in urban, rural, and remote areas. In response to an additional question regarding improvements and leakage control mechanisms, Lim explained that MoF encourages grocery stores or traders who wish to join the SARA Partner Programme to apply for participation.

On Friday, Anwar, who is also the finance minister, presented Budget 2026 amounting to RM470 billion, of which RM419.2 billion is government allocation. The budget, themed ‘The Fourth MADANI Budget: The People’s Budget’, is the first under the 13th Malaysia Plan (13MP) 2026-2030.

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