TARGETED SUBSIDIES ENABLE STR, SARA ALLOCATIONS TO RISE TO RM15 BLN IN 2026 - PM ANWAR

KUALA LUMPUR, Oct 10 (Bernama) -- The allocation for the Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA) is to increase to RM15 billion under Budget 2026, compared with RM13 billion in 2025, benefiting nine million recipients.

Prime Minister Datuk Seri Anwar Ibrahim said the increase is made possible through savings achieved from the implementation of targeted subsidies, including for diesel and RON95 petrol.

“I am pleased to announce that for 2026, all nine million STR recipients will also receive SARA of up to RM100 per month, or RM1,200 a year.

“Meanwhile, one million STR recipients under the e-Kasih programme will receive SARA of up to RM200 per month, or RM2,400 a year, while those in the single category will receive RM600, equivalent to RM50 per month,” he said when tabling the budget in the Dewan Rakyat today.

Anwar, who is also Finance Minister, said the maximum assistance received by a household would be RM4,600 — for those earning below RM2,500 per month with five children — comprising RM2,200 under STR and RM2,400 under SARA.

Referring to STR and SARA assistance records, Anwar said allocations for the Malay community increased to RM7.1 billion in 2025 compared with RM4.5 billion in 2022; for Bumiputeras in Sabah and Sarawak, RM1.9 billion compared with RM1.1 billion; and for the Indian community, RM1 billion compared with RM0.6 billion.

He said the government would once again provide a one-off SARA appreciation aid of RM100 to 22 million Malaysians aged 18 and above, to be disbursed in mid-February to help with preparations for Ramadan and the Chinese New Year celebration.

“On Aug 31, all Malaysians aged 18 and above received RM100 under SARA, of which more than 70 per cent has already been spent. Any unspent balance by December will be reallocated for programmes benefiting underprivileged groups.

He said financial assistance under the Social Welfare Department will continue to be distributed to more than 560,000 recipients, with an allocation of RM3.1 billion compared with RM2.9 billion previously.

As for the RAHMAH Sales Programme, RM1 billion is being allocated next year to address the rising cost of living, including RM600 million to expand the Payung RAHMAH initiative to all state constituencies nationwide.

The Prime Minister said that for the first time in the nation’s history, the hardcore poverty rate has fallen from 0.2 per cent to nearly zero — now standing at just 0.09 per cent, or about 7,000 households nationwide.

“This is based on the 2022 Food Poverty Line Income (Food PLI) of RM1,198.

“With the 2024 Food Poverty Line revised to RM1,236, God willing, the remaining 7,000 hardcore poor households will be eradicated before the end of this year,” he added.

-- BERNAMA