Budget 2027: STR and SARA allocation rises to RM16 billion, BUDI fuel quotas remain

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9 Oct 2026 • 4:15 PM MYT
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Malaysians can expect more financial assistance next year, with the government increasing its allocation for Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA) to RM16 billion under Budget 2027, up from RM15 billion this year.

Budget 2027: STR and SARA allocation rises to RM16 billion, BUDI fuel quotas remain
Image Credit: The Star, Canva

Finance Minister Datuk Seri Anwar Ibrahim announced that all STR recipients will be eligible for SARA assistance of up to RM150 per month, or RM1,800 annually, potentially benefiting up to nine million recipients.

The government is also extending assistance to Malaysians aged 18 and above who do not receive STR, with eligible individuals set to receive SARA Madani worth RM100 twice next year.

Image from: Budget 2027: STR and SARA allocation rises to RM16 billion, BUDI fuel quotas remain

Up to 13 million Malaysians to benefit from SARA Madani

According to Anwar, the two payments are scheduled to be distributed before Hari Raya Aidilfitri and again ahead of the country’s 70th Merdeka anniversary.

The initiative is expected to benefit up to 13 million Malaysians, including those from the M40 income group.

The government is also expanding SARA’s coverage to include fresh and wet food purchases at 216 farmers’ markets and tamu operated under the Federal Agricultural Marketing Authority (FAMA) nationwide.

There are currently around 15,000 SARA partner outlets, including 6,800 small grocery shops and cooperatives. The government aims to increase the number of participating small grocery shops to 10,000 by the end of this year.

BUDI fuel quotas deemed sufficient for most users

Meanwhile, the government believes the monthly subsidised fuel quotas under the BUDI Madani programme are sufficient for most Malaysians, pointing to usage records showing that only a small proportion of recipients exhaust their full allocations.

Anwar said September data showed that only around 100,000 BUDI95 users, or less than 1% of recipients, used up their entire monthly quota of 300 litres after the limit was increased the previous month.

For BUDI Diesel, which covers eligible jeep and pickup truck users, only around 15,000 recipients fully utilised their monthly allocation of 400 litres.

Anwar said the figures indicated that the existing monthly limits were reasonable and sufficient to meet the daily fuel needs of most users.

The government expects to allocate more than RM80 billion for subsidies, financial assistance and incentives next year, with fuel subsidies accounting for more than RM40 billion.

Another nearly RM3.3 billion is expected to be channelled through the Social Welfare Department (JKM) to support eligible recipients.

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