Budget 2025: Record increase in STR, SARA aid initiatives

KUALA LUMPUR: The government will provide a significant boost to the Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA) initiatives next year, with allocations rising to RM13 billion from RM10 billion and benefitting nine million recipients or 60 per cent of the adult population.

Prime Minister Datuk Seri Anwar Ibrahim said in 2025, a total of 4.1 million household STR recipients will receive SARA amounting to RM100 per month, compared to 700,000 recipients this year.

"SARA assistance will be credited directly to recipients' MyKAD starting from April 2025. It can be used to purchase basic necessities such as food, drinks, medicines, school supplies and personal hygiene products at more than 600 participating supermarkets and retail outlets nationwide.

"With an additional RM3 billion allocated, the maximum aid households can receive will increase to RM4,600, compared to RM3,700 previously," Anwar, who is also Finance Minister, said when presenting Budget 2025 at the Dewan Rakyat today.

Anwar also announced that financial assistance under the Social Welfare Department (JKM) would rise to RM2.9 billion from RM2.4 billion, enabling higher monthly welfare payments for the underprivileged.

He said under the new allocations, the Senior Citizens assistance rate will increase to RM600 per month, up from RM500. Meanwhile, the assistance for children from poor families will rise from RM200 to RM250 per child aged six and below, and from RM150 to RM200 per child aged 7 to 18.

For the Federal Territories (FT), the general assistance rate will increase to RM150, up from RM100, with a maximum household limit of RM500 per month and the prime minister urged all state governments to enhance their respective general assistance schemes as well.

"When combining all forms of assistance, including STR, SARA and JKM, a poor household with three children is eligible to receive over RM13,000 annually, which is a significant increase from RM11,000 currently.

"For senior citizens living in poverty, they will be eligible for over RM10,000 in aid annually, compared to RM8,000, ensuring that no one in Malaysia has an income of less than RM1,100 per month. This doesn't even account for additional aid from state governments, Zakat, or from foundations," he added.

Anwar also announced that RM1 billion would be set aside to combat the rising cost of living, with the 'Payung Rahmah' programme's allocation increasing to RM300 million, up from RM200 million.

Also, he said the Rahmah Sales initiative will be expanded to offer affordable essential goods in all state constituencies (DUN) on a monthly basis.

"RM700 million will be allocated to expand the scope of other cost-of-living programmes, including partnerships with supermarkets, wholesalers, grocery stores, farmers' markets, cooperatives and other retailers to help control prices.

"Besides this, RM250 million has been allocated to distribute essential items to rural and remote areas, including expanding to new areas like Magandai in Kota Marudu and Nanga Pelawan in Bintulu," he said.

-- BERNAMA

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