Budget 2027: STR And SARA Allocations Raised To RM16 Billion With Extended SARA Eligibility

KUALA LUMPUR, Oct 9 – The government has increased the total allocation for Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA) to RM16 billion under Budget 2027, up from RM15 billion in the previous fiscal cycle.

Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim announced that under the expanded structure, all STR recipients will qualify for SARA cash aid of up to RM150 a month, totaling RM1,800 annually.

Presenting Budget 2027 in the Dewan Rakyat on Friday afternoon, October 9, 2026, Anwar stated that non-STR recipients will also receive targeted financial support to cushion living costs.

Malaysians aged 18 and above who are not registered STR recipients will receive SARA MADANI payments of RM100 on two occasions—prior to Hari Raya Aidilfitri and in conjunction with Malaysia’s 70th National Day celebrations—benefiting up to 13 million citizens, including M40 middle-income households.

Expanded Merchant Network, Jualan RAHMAH Outlays, and Subsidies

The government outlined several complementary initiatives to enhance purchasing power and food distribution nationwide:

• SARA Usage Expansion: SARA credit can now be used to purchase wet and fresh produce across 216 farmers’ markets (tamu) managed nationwide by the Federal Agricultural Marketing Authority (FAMA).
• Participating Merchants: SARA’s merchant network encompasses 15,000 participating retail outlets, including 6,800 small grocery stores and cooperatives, with plans to register additional local grocers next year.
• Subsidies and Welfare Outlays: Total allocations for national subsidies, direct assistance, and incentives will top RM80 billion in 2027. Fuel subsidies are projected to account for RM40 billion, while Social Welfare Department (JKM) assistance receives nearly RM3.3 billion.
• Jualan RAHMAH MADANI Boost: Funding for Jualan RAHMAH MADANI and Jualan Agro MADANI sales programs was raised from RM630 million to RM750 million to organize 35,000 discounted sales events nationwide.
• Targeted Sales Outlets: A total of 30,000 Jualan RAHMAH events will cover every state constituency with a focus on rural villages, low-cost housing schemes, and urban PPR flats. Sales will utilize traditional grocery outlets, vending machines, and wholesale formats (Jualan RAHMAH MADANI Borong) to assist small merchants.
• Agro Sales & Remote Distribution: 5,000 Jualan Agro MADANI events will supply fresh produce—including seafood, poultry, vegetables, and fruit—at discounts of up to 30 per cent. Furthermore, essential goods distribution to remote areas receives RM250 million, expanding to six new interior locations including Kampung Terian in Penampang, Sabah, and Kampung Dato’ Godam in Pusa, Sarawak.

The social safety net expansion under Budget 2027 aims to directly support lower- and middle-income demographics facing ongoing economic pressures.

–NMT