THE Government will increase its social support spending in 2025 to RM13 billion, reaffirming its commitment to easing the cost of living and promoting equitable growth under the MADANI economic agenda, Deputy Finance Minister Lim Hui Ying told the Dewan Rakyat today.
In reply to a question from Opposition Leader Datuk Seri Hamzah Zainudin on inflation and national debt—now at RM1.5 trillion—Lim said assistance would remain centred on low- and middle-income groups despite broader fiscal constraints.
She confirmed that allocations for the Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA) schemes had increased to RM13 billion from RM10 billion in 2024, reaching almost nine million Malaysians or roughly 60 per cent of the adult population.
“The maximum household payout under STR has also risen to RM4,600 this year, compared to RM3,700 last year—an increase of nearly 25 per cent,” she said.
Support through the Department of Social Welfare (JKM) has also grown, with RM2.9 billion allocated this year, up from RM2.4 billion previously.
Enhancements include an increase in Elderly Assistance to RM600 per month, higher Child Assistance for low-income households—set at RM250 for children aged six and below, and RM200 for those aged seven to 18, capped at RM1,000 per family—as well as General Assistance in the Federal Territories, raised to RM150 per month with a maximum of RM500 per household.
Lim announced a further RM1 billion for broader cost-of-living measures, including efforts to stabilise the prices of staple goods such as rice and cooking oil.
Of this, RM300 million is dedicated to the RAHMAH Umbrella Programme, under which Rahmah Sales will be extended to all state constituencies. The remaining RM700 million will support cost relief efforts targeted at the B40 and M40 income groups.
Key initiatives continuing in 2025 include the Early Schooling Aid (BAP), the BUDI MADANI subsidy scheme for transport, agriculture and diesel vehicle owners, and the My50 Monthly Pass for Klang Valley commuters.
To strengthen household incomes, the Government has also raised the national minimum wage from RM1,500 to RM1,700 and implemented pay rises for civil servants.
“These measures are important to ensure the country’s economy continues to grow towards realising the objectives under the MADANI Economy framework,” Lim told lawmakers.
Government to Closely Monitor Food Prices Following SST Expansion
On concerns about the potential impact of the expanded Sales and Services Tax (SST) on food prices, Lim assured MPs that price stability remained a key Government priority.
“The Ministry of Domestic Trade and Cost of Living (KPDN) will conduct regular field checks to ensure food prices do not rise,” she said.
She acknowledged that food inflation was outpacing the national average, with prices rising 2.1 per cent in June and averaging 2.4 per cent during the first half of the year, compared to the overall national inflation rate of 1.1 per cent.
“When expanding SST, we anticipated possible effects on living costs and food prices,” Lim said. “But we are committed to ensuring that the prices of basic necessities remain stable.”
“We will continue to monitor prices closely to protect affordability, particularly for essential food items,” she added. - July 23, 2025
