Malaysia

Consumer groups urge broader support to strengthen STR as cost pressures persist

Malaysia’s main consumer bodies have called for the Sumbangan Tunai Rahmah cash aid scheme to be reinforced with skills training, employment support and easier access to essential goods

Updated 8 months ago · Published on 21 Jan 2026 9:33AM

Consumer groups urge broader support to strengthen STR as cost pressures persist
FOMCA warns that direct payments alone are not enough to protect vulnerable households from rising living costs - January 21, 2026

CONSUMER advocates have urged the government to enhance the Sumbangan Tunai Rahmah (STR) programme with complementary measures, arguing that cash assistance must be paired with longer-term support if recipients are to build financial resilience.

The Federation of Malaysian Consumers Associations (FOMCA) said initiatives such as skills training, employment assistance and improved access to affordable basic goods and services would significantly strengthen the impact of STR.

FOMCA chief executive Dr T. Saravanan said recipients should be given the flexibility to choose programmes that best suit their circumstances under the STR framework, allowing them to improve their income prospects rather than relying solely on cash transfers.

“The Finance Ministry should coordinate with the relevant agencies to make this possible,” he said.

Saravanan also stressed that benefit levels must be reviewed regularly to ensure they remain aligned with inflation and the rising cost of living.

“Linking disbursements to cost-of-living indicators or introducing real-time adjustment mechanisms would make STR more effective as an economic stabiliser,” he said.

He added that the scheme’s targeting could be refined to better reflect today’s labour market realities.

“The target groups could also be refined to include informal workers with fluctuating incomes, newly vulnerable groups, long-term unemployed and low-earning gig workers,” he told the New Straits Times, adding that the STR initiative must remain responsive to changing economic conditions.

Accessibility was another concern, with Saravanan noting that many eligible Malaysians may still be unaware of their entitlement or uncertain about how to apply through the MySTR portal.

“Simplifying requirements, expanding outreach and providing walk-in assistance points would help make coverage more comprehensive and inclusive,” he said.

Separately, Consumers’ Association of Penang president Mohideen Abdul Kader welcomed the integration of STR with Sumbangan Asas Rahmah, saying it would help streamline the distribution of aid to eligible groups.

However, he cautioned against making such payments permanent.

“However, such payments should be phased out once the economy stabilises. In the meantime, the government should place greater emphasis on wages that reflect the cost of living, rather than focusing solely on minimum wages,” he said.

The STR initiative covers households earning up to RM5,000 a month, single senior citizens and low-income single individuals who meet the eligibility criteria.

Phase One disbursements, which began yesterday, are expected to benefit five million recipients, comprising 3.7 million households and 1.3 million single senior citizens, with payments ranging from RM100 to RM500. - January 21, 2026

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