The government is reviewing possible improvements to the Sumbangan Asas Rahmah, or SARA, aid programme, including a proposal to allow recipients to purchase frozen food items.

Finance Minister II Datuk Seri Amir Hamzah Azizan said the proposal would be discussed with the SARA implementation team to assess its suitability before any decision is made. He was responding during the winding-up session of the Ministry of Finance debate on the royal address in the Dewan Rakyat.

He added that any expansion of eligible items would be announced at a later stage, once the review is completed.

Frozen Food Inclusion Under Consideration

Currently, SARA assistance can only be used for selected essential goods. The proposed inclusion of frozen food products would broaden the range of food options available to recipients, particularly households that rely on frozen items for affordability, storage, or convenience.

The government has not provided a timeline for the review or confirmed whether the proposal will be approved.

Retail Network Expansion Shows Strong Uptake

Amir Hamzah said the SARA programme has recorded positive implementation results, particularly in the expansion of its retail network.

The number of recognised outlets under the programme increased from 700 in 2024 to around 10,000 last year. This includes about 3,000 small grocery shops, significantly improving access for recipients, especially in residential and semi-urban areas.

Earlier this year, Prime Minister Datuk Seri Anwar Ibrahim announced a target to increase the number of participating small grocery shops from 3,000 to 10,000 by the end of this year. According to Amir Hamzah, this expansion will allow more small traders and retailers to take part in the SARA scheme.

High Utilisation Rate Among Recipients

The Finance Minister II said SARA has also shown a strong utilisation rate, with 99% of recipients experiencing no issues when using the assistance.

This includes satisfaction with the number of participating outlets and the ability to redeem aid without major disruptions. The high utilisation rate suggests that most recipients are able to access and use the assistance as intended.

Targeted Subsidies and Use of MyKad

On the broader approach to targeted subsidies, Amir Hamzah said the government is implementing reforms carefully to ensure assistance reaches those who are entitled to receive it.

He cited the Budi Madani RON95, or Budi95, initiative as an example of how petrol subsidies are being distributed in a more targeted manner to reduce leakages and ensure public funds are directed towards priority needs.

He added that the government does not agree with calls to reject the use of MyKad for distributing social assistance and subsidies, as the system ensures that aid is limited to Malaysian citizens.

How The Updates Could Affect Daily Spending And Small Traders

For households receiving SARA assistance, the possible inclusion of frozen food products could improve flexibility in managing daily food expenses. Frozen items often offer longer shelf life and may help families stretch their budgets, particularly in areas with limited access to fresh produce or frequent shopping options.

The rapid expansion of participating retailers, especially small grocery shops, reduces travel time and reliance on larger supermarkets. This improves accessibility for recipients while also directing spending towards neighbourhood businesses.

For small traders, inclusion in the SARA programme can provide a steadier flow of customers and more predictable demand. As the network continues to expand, competition among participating shops may also encourage better service and pricing.

At a policy level, the continued use of MyKad and targeted subsidy mechanisms reflects a tighter approach to managing public funds. The effectiveness of this approach will depend on accurate data, smooth implementation, and sustained access for eligible recipients.

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