KUALA LUMPUR (Oct 10): Malaysia is boosting its cash transfer programmes by RM2 billion next year and will dish out special payments to select groups of individuals amid rising costs of living.
The federal government has allocated cash handouts of RM15 billion under the Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (Sara) initiatives for Budget 2026, higher than the RM13 billion allocated under Budget 2025.
“Although economic figures appear convincing, we acknowledge that the cost of living is increasing and burdensome,” said Prime Minister Datuk Seri Anwar Ibrahim. “Recognising this fact, cash assistance for the people will be increased.”
All nine million STR recipients will receive up to RM100 per month. In addition, one million STR recipients under the e-Kasih programme for the poor and hardcore poor will also receive up to RM200 per month annually.
Single individuals will receive RM600, equivalent to RM50 per month, while the maximum household benefit amounts to RM4,600 — comprising RM2,200 in STR and RM2,400 in Sara — for households earning below RM2,500 per month with up to five children.
The higher allocation was made possible through savings achieved from the government’s subsidy rationalisation measures, said Anwar during the budget presentation on Friday.
Special aid
In addition to cash aid under STR and Sara, several groups will also receive targeted assistance under Budget 2026.
The government will provide a special payment of RM500 to nearly 120,000 Malaysian Armed Forces veterans who hold the Pingat Jasa Malaysia medal.
Civil servants of Grade 56 and below, including contract appointees, will receive a one-off RM500, while pensioners and non-pensionable veterans will receive RM250, both to be paid in early March 2026 in conjunction with Aidilfitri.
The government will also channel a special RM500 contribution to 70,000 Kafa (Kelas Al-Quran and Fardu Ain) teachers, religious officials and mosque staff, including imam, bilal, tok siak, noja and marbut.
To encourage civil servants to pursue higher academic qualifications, the government will introduce a monthly cost-of-living allowance of RM900 for recipients of the Federal Training Award’s partial scholarship starting in 2026, while increasing the number of recipients from 100 to 150 annually.