Malaysia

Millions may gain from broader Sara Aid expansion to combat rising costs

PM signals that the government is exploring a funding boost for the Sara cash assistance scheme to further mitigate the financial strain on vulnerable households

Updated 2 months ago · Published on 19 Jul 2026 5:14PM

Millions may gain from broader Sara Aid expansion to combat rising costs
Anwar moves to widen the government’s safety net for citizens grappling with elevated daily living expenses and supply-driven price shocks - July 19, 2026

THE government is reviewing plans to expand the cash payout allocation under the Sumbangan Asas Rahmah (Sara) programme to shield a larger segment of the population from stubborn inflationary pressures, Prime Minister Datuk Seri Anwar Ibrahim has announced.

Anwar disclosed that he has directed Ministry of Finance officials to evaluate whether the scope and quantum of the financial aid could be extended to further mitigate the financial strain on vulnerable households.

"I called the Treasury leadership to discuss whether we could increase Sara further," he said during an address at the Madani Kita event, which was organised by the People’s Volunteer Corps (Rela) at the Taman Perpaduan community hall in Ipoh today.

The Prime Minister noted that whilst state interventions, such as targeted fuel price subsidies, had buffered the economy against sharper shocks, many families remained highly vulnerable to the escalating cost of basic necessities.

He observed that certain price spikes were tied to systemic global variables and domestic supply constraints, pointing specifically to the nation's heavy dependence on foreign agricultural imports.

"For example, we import onions from India because we do not produce enough locally. When there are supply issues, prices increase. These are matters we need to address," he said.

To provide immediate relief from market volatility, Anwar said the administration would scale up parallel grassroots interventions, notably by widening the coverage of its discounted essential goods initiative, Jualan Rahmah.

"Recently, I announced that we may increase Jualan Rahmah initiatives, including in Perak, to help reduce the cost of living," he said.

He stated that fiscal priorities would be recalibrated during the drafting of the next national budget to ensure state funds are directed towards direct-benefit grassroots welfare.

"We want to ensure that whatever assistance provided reaches the people and helps ease their daily burden," he said.

On a separate note, Anwar pledged an immediate RM3 million funding package for the current year to elevate the welfare of Rela personnel, specifically earmarking resources for the emergency rehabilitation of dilapidated homes.

The Prime Minister explained that the decision was finalized following strategic consultations with Home Minister Datuk Seri Saifuddin Nasution Ismail regarding the socio-economic wellbeing of the volunteer force.

"This is not because they requested it, there was no formal application or letter. When I discussed this with the Home Minister last year, he agreed that we needed to look into their welfare because they are like the nation’s extended security force, helping the government and the people. So, I have instructed the Director-General to speed up the process and to identify homes that need repairs and carry out the improvements," he said.

Anwar clarified that the emergency disbursement is strictly targeted at restoring basic structural habitability rather than funding extensive home renovations.

"We are not building mansions or luxurious houses. We are just repairing what is necessary, perhaps providing RM5,000 for basic repairs according to the Director-General’s discretion," he said. - July 19, 2026

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