NEARLY A THIRD OF SARA AID SPENT WITHIN FIVE DAYS OF DISBURSAL, PROVING PROGRAMME'S EFFECTIVENESS -- JOHAN

By Nor Baizura Basri and Mohd Iswandi Kasan Anuar

PUTRAJAYA, Jan 17 (Bernama) -- Almost one third of the approximately RM624.97 million disbursed under the Sumbangan Asas Rahmah (SARA) aid programme since Jan 9 has been spent as of Jan 13, indicating its effectiveness in helping low-income groups cope with the cost of living.

Treasury secretary-general Datuk Johan Mahmood Merican said that since SARA’s introduction, the MADANI Government has implemented various improvements by taking into account feedback from various quarters, including expanding the types of products that can be purchased and increasing the number of registered premises for the convenience of the recipients.

He added that the government has also continuously adopted an open approach and always welcomes suggestions from recipients, particularly to enhance the monthly aid programme further.

“So far, the feedback we’ve received from participating shops has also been very positive. Once SARA payments were credited into the identity cards, all of them saw their sales increase.

“Based on the latest data I received, nearly a third of the amount disbursed since Jan 9 has already been spent. I think this proves that SARA is an effective mechanism for channelling assistance to households,” he told Bernama in an interview here recently.

According to data from the Ministry of Finance (MoF), Labuan and Sabah recorded the highest percentage of SARA spending at 36 per cent each while Kuala Lumpur was the lowest at 21 per cent as of Jan 13, five days after SARA’s 2026 disbursement began.

The data also show that SARA recipients have spent about RM172.49 million, involving recipients from all the states and federal territories, including Labuan and Putrajaya.

In addition to benefiting recipients, Johan said, the disbursement of SARA and Sumbangan Tunai Rahmah (STR) has also created spillover effects and opportunities for participating traders and premises to engage in healthy competition by offering lower prices, thereby providing recipients with more spending options.

“By involving sundry shops, supermarkets and the like, what we have noticed is that they also compete to attract SARA recipients to spend at their respective outlets.

“At the same time, we also ensure that the goods that can be purchased using SARA credits include products from local micro, small and medium enterprises (MSMEs),” he said.

Johan also said that the MoF has intensified engagement and data cross-checking with relevant agencies such as the Social Welfare Department  and the Department of Orang Asli Development (JAKOA), as well as going on the ground covering rural areas to ensure that no eligible recipients are left out of the SARA and STR assistance.

Earlier, on Jan 5, the MoF announced that SARA redemption premises had been expanded to include more small and independent shops located closer to local communities, hence going beyond just supermarkets and large retail chains.

The ministry added that the government aims to increase the number of small shops participating in the SARA programme to 10,000 by the end of 2026 to complement existing supermarket outlets. As of Nov 23, 2025, the 9,200 registered premises included more than 3,000 small shops.

This year, the SARA programme has also seen a sharp increase in the number of recipients, involving 8.1 million people with an allocation of RM8 billion, compared with 5.4 million recipients and an allocation of RM5 billion in 2025.

The monthly SARA disbursements for 2026 beginning Jan 9 are expected to benefit five million recipients comprising 3.7 million households and 1.3 million senior citizens without spouses, while payments to 3.1 million single individuals started yesterday (Jan 16).

In addition, the STR Phase 1 disbursement for 2026 will kick off on Jan 20, involving an allocation of RM1.1 billion for 3.7 million households and 1.3 million single senior citizens, with recipients receiving between RM100 and RM500 depending on their eligibility.

To reduce the risk of eligible recipients being left out, new STR applications and appeals are open throughout the year via the official portal, https://bantuantunai.hasil.gov.my

-- BERNAMA