KUALA LUMPUR (Jan 19): Putrajaya will increase household assistance to RM1,200 this year from RM600 last year, as well as extend the scheme to include the poor category, in addition to the hardcore poor, under the Sumbangan Asas Rahmah (Sara) programme.

Meanwhile, assistance to single individuals will remain at RM600, according to a statement released by the Ministry of Finance (MOF) on Friday.

The items eligible for purchase under the scheme will be expanded to include three new categories: personal care items, medicines and school supplies, in addition to basic food and foodstuff.

According to the ministry, the revised programme is expected to benefit over 700,000 recipients in the poor and hardcore poor categories, with an allocation of RM700 million. 

This marks an increase of over five times from the previous year, as the programme reportedly benefited 210,000 individuals with an expenditure of RM130 million in 2023.

“The eligibility criteria for Sara is based on a database of poor or hardcore poor by e-Kasih, a referral database for ministries and government agencies,” it said.

Beginning Jan 22, the Sara will be credited to the eligible recipients in Peninsular Malaysia to purchase selected essential items by using MyKAD at participating retailers. The credit assistance will be disbursed throughout the year at RM100 for households and senior citizens without a spouse, and RM50 for single individuals.

“Following the encouraging response to the Sara programme last year, the government has also expanded the network of participating retailers, such as supermarkets and sundry shops, to 515 (as of Jan 17), from 424 in 2023, across the nation,” it added.

Meanwhile, the aid will be given to eligible recipients in East Malaysia from Feb 19 onwards, through bank transfers or cash handouts.

“The payments are scheduled on Feb 19 and Aug 12 to the recipient’s bank account, or handed out in cash at Bank Simpanan Nasional’s (BSN) branches nationwide. The payment will be transferred in two instalments of RM600 for households and senior citizens without a spouse, and RM300 for single individuals,” the MOF explained in a statement.

The ministry further said that the government decided to enhance the programme to provide targeted subsidy assistance to the rakyat most affected by the living cost.

“The Malaysian economy’s transformation begins with lifting our most vulnerable up.

“The improvements to the Sara programme is the first step in bridging inequality and building an inclusive society, as envisioned in the Ekonomi Madani framework,” said Prime Minister Datuk Seri Anwar Ibrahim, who is also the finance minister, in the statement.