Malaysia

Targeted subsidies to be strengthened through SARA programme to boost efficiency, prevent misuse

Minster says approach allows the Government to monitor implementation and ensure the aid reaches the intended beneficiaries

Updated 9 months ago · Published on 18 Dec 2025 11:21AM

Targeted subsidies to be strengthened through SARA programme to boost efficiency, prevent misuse
SARA provides cashless credit through recipients’ MyKad cards, which can be used at registered SARA partner outlets to purchase essential goods - December 18, 2025

THE Government has outlined long-term measures to ensure the effective implementation of targeted subsidies under the Sumbangan Asas Rahmah (SARA) programme, minimising technical issues and preventing the misuse of MyKad identity cards.

In the Dewan Negara session on Thursday, Senator Tuan Mohd Hasbie Muda questioned the Minister of Finance on steps being taken to safeguard the programme from fraudulent activity.

Finance Minister II Datuk Seri Amir Hamzah Azizan emphasised that SARA provides cashless credit through recipients’ MyKad cards, which can be used at registered SARA partner outlets to purchase essential goods.

“This approach allows the Government to monitor implementation and ensure the aid reaches the intended beneficiaries,” the minister said.

Officials have upgraded the SARA payment system significantly, increasing its capacity to handle spikes in transactions.

While the system previously managed 2,700 transactions per minute, it now processes 7,000, with upgrades scheduled to raise the capacity to 10,000 transactions per minute by the end of 2025.

Current average usage stabilises at around 1,000 transactions per minute.

Addressing concerns about misuse of MyKad, the minister clarified that using another person’s MyKad is an offence under the National Registration Act 1959 and its 1990 regulations.

Citizens are urged to report lost cards to the Royal Malaysian Police and to replace them promptly through the National Registration Department (JPN).

The government continually updates beneficiary lists in collaboration with JPN to ensure only valid MyKad holders access the aid.

“It is also reminded that all Malaysians should safeguard their MyKad to prevent related issues,” the minister added.

According to current data, approximately 5.6 million monthly SARA recipients are eligible for a total of RM5 billion in aid for the year.

As of 17 December 2025, 99 per cent of recipients had utilised their MyKad at registered outlets, spending RM4.59 billion.

Additionally, over 20 million adults have participated in the one-off Penghargaan SARA payment, accounting for 92 per cent of total recipients and RM1.91 billion in spending.

Commenting on programme effectiveness, the minister noted that SARA has been widely embraced, including among the elderly and vulnerable groups.

Usage was highest in Perlis, Perak, Kelantan, Terengganu, Kedah, Pahang, and the Federal Territory of Labuan, with full utilisation of available credits in registered retail outlets.

However, the minister clarified that unused monthly SARA credits and one-off Penghargaan SARA cannot be carried forward and must be expended within the current year, before 31 December 2025.

“The Government remains committed to monitoring the programme to ensure continued support for those in need amidst rising living costs,” he added. - December 18, 2025

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