KUALA LUMPUR (Oct 9): Malaysia is expanding its two key cash handout schemes by RM1 billion for next year as the government boosts the overall outlay for social assistance programmes.
The allocation for Sumbangan Tunai Rumah (STR) and Sumbangan Asas Rumah (Sara) will be increased to RM16 billion, Prime Minister Datuk Seri Anwar Ibrahim, who is also finance minister, announced in his Budget 2027 presentation on Friday.
STR recipients will receive a monthly assistance of RM150. Non-STR recipients aged 18 and above, meanwhile, will receive RM100 before Hari Raya Aidilfitri and Independence Day.
The assistance is expected to benefit up to 13 million Malaysians, said Anwar, including those in the middle-income or M40 bracket.
Malaysia has been distributing more cash to cushion the pain from subsidy rationalisation and help the poorest cope with rising cost of living. The government has been expanding the programme to cover more people, including the middle class.
The total allocation for subsidies, assistance and incentives for 2027 will exceed RM80 billion, which includes fuel subsidies at RM40 billion and assistance from the Department of Social Welfare of almost RM3.3 billion.
Anwar also proposed expanding the use of Sara credits to fresh produce, which recipients will be able to purchase at 216 farmers' markets and tamu markets under the Federal Agricultural Marketing Authority nationwide.
Sara currently has 15,000 participating outlets, including 6,800 small grocery stores and cooperatives, and the aim is to increase the number of small grocery stores under the scheme to 10,000 by the end of this year.
Civil servants, persons with disabilities
Anwar also announced a special financial assistance of RM1,500 for 1.3 million civil servants in Premier Grade Utama B and below, including contract employees. More than one million government pensioners, including non-pensioned armed forces veterans, will receive RM750 each.
The special financial assistance will be paid in two instalments, with the first disbursement scheduled before Aidilfitri and the second before Merdeka.
The government will also dish out RM750 to 70,000 religious personnel, including Kelas Al-Quran dan Fardu Ain (Kafa) teachers, takmir teachers, imams, bilals, tok siak, noja and marbut. The 500 Kafa teachers who teach students with special needs will receive a RM150 monthly incentive.
Meanwhile, a one-off RM1,000 will be distributed to 53,000 taxi, rental car and school bus drivers next week using proceeds from the recent sale of special 'H' vehicle registration plates, benefitting 38,000 taxi and rental car drivers, as well as 15,000 school bus drivers.
Total assistance for people with disabilities was raised to RM1.5 billion for more than 300,000 individuals.
The monthly allowance for students with special education needs will be increased to RM200 from RM150, while the income threshold for eligibility for the disabled workers allowance will be raised to RM2,000 from RM1,700.