PM finds RM100 of significance, states
In a significant move to alleviate cost-of-living pressures, Prime Minister Datuk Seri Anwar Ibrahim has announced an increase in the allocation for the Sumbangan Asas Rahmah (SARA) and Sumbangan Tunai Rahmah (STR) initiatives from RM13 billion to RM15 billion for the year 2025.
The extension of SARA to all adult Malaysians, starting from August 31, 2025, will see each adult receiving a one-off RM100 cash aid. This universal RM100 aid, which requires a RM2 billion budget, will expand the coverage of the initiatives from the targeted groups to the entire adult population, estimated at 22 million people.
The disbursement is individual and not per household, meaning a household with four adult members can receive RM400 in total aid. The cash can be spent on essential goods at over 4,100 participating retail stores nationwide, including major supermarkets like Mydin, Lotus’s, Econsave, and 99Speedmart.
This marks the first time in history that Malaysia is distributing cash aid to all adult citizens, signalling a significant broadening of social assistance coverage. The aim is to help mitigate the cost of living pressures amid economic challenges and ensure support extends beyond the lowest income groups to a wider population base.
The government has also indicated that unused funds by year's end would be redistributed to vulnerable groups in subsequent years. This initiative complements other ongoing efforts such as the My50 Monthly Pass for public transport users and increased social welfare fund allocations.
The RM100 SARA payment for Merdeka Day 2025 is redeemable from August 31 to December 31, 2025, through MyKad at authorized retailers. STR payments continue with multiple phases planned in 2025 to maintain support to the existing beneficiaries.
The combined aid package is part of the MADANI Government’s broader strategy to sustain economic growth and support citizens' welfare under the MADANI Economy framework. However, no new information was provided about the allocation for SARA and STR, or the amount Malaysian adults will receive under the SARA initiative or the civil service salary review.
Anwar did not specify when the targeted subsidies will come into effect. Details about the lower RON95 price of RM1.99 per litre, once targeted subsidies come into effect, are expected to be revealed before the end of September. The implementation of targeted subsidies will be carried out in phases to ensure that aid reaches the B40 and M40 income groups.
In response to criticism from several opposition MPs who questioned his announcement about the SARA initiative, Anwar stated that he and his team at the finance ministry had added another RM2 billion to the budget. Anwar also dismissed remarks by former prime minister Dr Mahathir Mohamad regarding immunity from legal action over his role in the Batu Puteh issue.
The increase to RM15 billion reflects the addition of the universal RM100 SARA payment benefiting 22 million adult Malaysians, significantly expanding the social safety net and underscoring the government’s commitment to easing cost-of-living pressures for a broader segment of the population in 2025.
- Prime Minister Anwar Ibrahim, in a significant step, has increased the budget for the Sumbangan Asas Rahmah (SARA) and Sumbangan Tunai Rahmah (STR) initiatives from RM13 billion to RM15 billion for the year 2025.
- The extension of SARA to all adult Malaysians from August 31, 2025, will provide a one-off RM100 cash aid to each adult, requiring a budget of RM2 billion.
- The cash aid, which can be spent on essential goods at over 4,100 retail stores across Malaysia, signifies the first time universal cash aid is being distributed to all adult citizens in the country.
- The government has indicated that any unused funds by year's end will be redistributed to vulnerable groups in subsequent years, complementing other ongoing initiatives like the My50 Monthly Pass and increased social welfare fund allocations.
- In response to criticism, Anwar stated that his team at the finance ministry had added another RM2 billion to the budget for the SARA initiative.
- The increase to RM15 billion reflects the addition of the universal RM100 SARA payment, significantly expanding the social safety net and underscoring the government's commitment to easing cost-of-living pressures for a broader segment of the population in 2025.
