23rd December 2024 - 2 min read

The Madani government’s initiative to implement the Sumbangan Tunai Rahmah (STR) cash aid programme represents a significant step in helping citizens navigate the rising cost of living.
According to Malaysia University of Science and Technology (MUST) economist Prof Dr Barjoyai Bardai, the government’s commitment to supporting citizens is evident in the Budget 2025 announcement, which raises allocations for STR and Sumbangan Asas Rahmah (SARA) from RM10 billion to RM13 billion—marking the highest increase to date.
“While the people fundamentally require various forms of other assistance, STR is a much-anticipated initiative to improve their well-being and also brings hope that the government cares and is attentive to their needs. Of course, it is not enough as the living cost for a family is over RM3,000 per month. However, when this aid supplements household income, STR becomes a meaningful amount that can ease their living,” he said.
Barjoyai also advocated for the continuation of STR, suggesting that the government implement a sustainable funding mechanism to prevent undue strain on national financial resources. He proposed the creation of an endowment fund through a social security institution capable of generating annual income, ensuring STR’s longevity without relying solely on annual government budgets.

Dr Noor Nirwandy Mat Noordin, Fellow of Psychological Operations at Universiti Teknologi MARA (UiTM), highlighted STR’s role in improving the people’s socio-economic status by allowing them to directly benefit from government initiatives.
“STR also fosters a sense of reliance among the people on the government in realising targeted subsidies and shaping a more structured economic plan,” he said.
During the tabling of Budget 2025 on 18 October 2024, Prime Minister Datuk Seri Anwar Ibrahim, who also serves as Finance Minister, announced that starting in April 2025, 4.1 million STR household recipients will receive SARA aid of RM100 per month, a substantial increase from the 700,000 recipients this year. This aid will be credited directly to recipients’ MyKAD and can be used for essential purchases, such as food, medicine, school supplies, and personal hygiene products, at over 600 participating supermarkets and retail outlets nationwide.
(Source: Bernama)
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