Malaysia

SARA initiative boosts local economy while supporting low-income families

Retailers and micro-entrepreneurs see growth as Malaysia’s cash aid scheme drives demand for local products

Updated 10 months ago · Published on 05 Oct 2025 9:11AM

SARA initiative boosts local economy while supporting low-income families
Malaysians see ripple effects in terms of increasing sales, diversifying consumer choices, and spotlighting homegrown products - October 5, 2025

THE nation’s Sumbangan Asas Rahmah (SARA) programme is not only easing the burden on low-income families but is also injecting new life into the local retail and small business landscape, particularly among micro, small, and medium enterprises (PMKS).

Retail supervisors and business operators in Sibu have shared how the expanded scheme is creating ripple effects across the community by increasing sales, diversifying consumer choices, and spotlighting homegrown products.

“Every assistance distributed doesn’t just help recipients purchase daily necessities, it also benefits local industry players by boosting sales and providing opportunities to promote local products,” said Peter Baran, supervisor at Jumbo Grocer (Apollo).

“If this programme continues, even more PMKS products could be listed. It gives small producers a platform to sell, while offering consumers greater choice,” he told Bernama.

Currently, Jumbo Grocer stocks around 20 locally made PMKS items, including the popular Sarawak Kopi O, which Peter said has received an encouraging response from customers.

He noted that most recipients tend to redeem essential goods such as rice, sugar, cooking oil and canned foods, while fewer opt for personal care items, school supplies, or cleaning products.

At another outlet, Floren Agan, Head Cashier at Easy Shop in Lorong Ulu Oya 11, said many beneficiaries were still unaware of the full range of items eligible for redemption under SARA.

“Most focus on staples like rice, cooking oil, coffee, tea, and sugar. But they can also get noodles, instant food, and tinned goods. Only a handful choose cleaning products,” she said.

Floren described SARA as a holistic approach that simultaneously supports the welfare of citizens and empowers local traders, enabling local products to scale to higher markets.

“Easy Shop already sells a wide array of local products. If more PMKS join in, consumers will benefit from even more choices. This initiative doesn’t just help people—it could also help local products reach international markets.”

A survey by Bernama at several supermarkets in Sibu found growing shelf space dedicated to Sarawak-made PMKS food products such as mi kolok, dried noodles and bihun, signalling rising demand and confidence in local brands.

Although goods from Peninsular Malaysia still dominate, the increasing presence of products from Sabah and Sarawak reflects the quality and potential of local entrepreneurs, which stakeholders say should not be underestimated.

SARA is a targeted cash aid programme now covering 5.4 million recipients nationwide, including 700,000 from the eKasih database and 4.7 million under the Sumbangan Tunai Rahmah (STR) umbrella.

Under Budget 2025, allocations for STR and SARA have increased to RM13 billion, up from RM10 billion last year, with annual SARA assistance raised to RM2,100 per recipient, compared to RM1,200 previously.

In line with the MADANI economic framework, the initiative prioritises equitable opportunity, improved quality of life, and robust social protection for lower-income groups.

In a National Day gesture, Prime Minister Datuk Seri Anwar Ibrahim also announced a one-off RM100 payment to all adult citizens aged 18 and above under SARA, credited directly to their MyKad. The move benefits 22 million Malaysians and adds RM2 billion to this year’s allocation, bringing the total STR and SARA budget to RM15 billion—the highest in the country’s cash aid history.

The funds can be spent between 31 August and 31 December at over 8,100 registered outlets and supermarkets across the country. - October 5, 2025

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