Govt Proposes Highest-Ever Cash Handouts To Address Cost Of Living Issues
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The government has proposed an allocation of RM13 billion in cash handouts under various schemes including Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA), RM3 billion more than last year. It is the highest-ever amount allocated, and will also ensure that no Malaysian will have an income less than RM1,100 per month.

The STR and SARA cash assistance will benefit 9 million recipients, equivalent to 60% of the country’s adult population. In 2025, the SARA cash assistance alone will be distributed to 4.1 million eligible recipients – a huge increase from this year’s 700,000 recipients. The cash assistance will be credited to the recipient’s MyKAD from April 2025.

The STR cash assistance will see the maximum handout that can be given to a household to hit RM4,600 compared to RM3,700 currently, while single recipients will receive RM600. According to Prime Minister Dato’ Seri Anwar Ibrahim, this is a direct response to the rising cost of living expenses faced by Malaysians, where it is especially challenging for the B40 households.

Meanwhile, cash handouts under Jabatan Kebajikan Masyarakat (JKM) will be further increased to RM2.9 billion from RM2.4 billion currently. Monthly welfare assistance to the poor will be increased as per the following:

  • Kadar Bantuan Warga Emas increased from RM500 to RM600 per month
  • Kadar Bantuan Kanak-kanak Keluarga Miskin assistance:
    • From RM200 to RM250 per child aged 6 and below
    • From RM150 to RM200 per child aged between 7-18
    • Capped at a maximum of RM1,000 per family

Dato’ Seri Anwar further emphasised the significance of the additional allocation, noting that a family with three eligible children can be entitled to receive more than RM13,000 a year compared to the current limit of RM11,000. In his speech, he further stressed the importance of ensuring no one is left behind.

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