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THE government has significantly raised its commitment to social protection, increasing allocations for cash assistance and targeted subsidies to help citizens, particularly those in urban areas, cope with the rising cost of living.
Prime Minister Datuk Seri Anwar Ibrahim, in a written parliamentary reply on Tuesday, said the government remains committed to strengthening social safety nets and ensuring that no one is marginalised, especially in cities where financial pressures are more acute.
“In line with the MADANI Economic Framework, we have introduced a range of comprehensive assistance packages, including increasing allocations for the Rahmah Cash Contribution (STR) and Rahmah Basic Contribution (SARA), implementing price controls, and delivering targeted subsidies,” he stated.
The allocation for STR and SARA has risen to RM15 billion in 2026, up from RM10 billion last year, including a one-off RM2 billion SARA appreciation payment announced by the Prime Minister on 23 July 2025.
To address cost-of-living concerns more broadly, RM1 billion has been allocated for essential goods price controls, including for rice and cooking oil.
The government has also allocated RM600 million for the Payung RAHMAH initiative in 2025, while the enhanced RAHMAH Sales Programme will make essential items more affordable in all State Legislative Assembly (DUN) constituencies.
Anwar, who also serves as Prime Minister, added that other subsidies remain in place under the Cooking Oil Stabilisation Scheme (COSS), targeted diesel and electricity subsidies, and through the MADANI Subsidy Assistance programme, or BUDI MADANI.
The government is also supporting families through the RM791 million Early Schooling Assistance Programme (BAP 2025), which is provided universally to ease the financial burden of schooling.
Urban commuters are set to benefit from the My50 Monthly Pass, a transport initiative aimed at reducing public transport costs.
From 30 September, the government began rolling out targeted RON95 petrol subsidies under the BUDI95 initiative.
“Through this initiative, Malaysian citizens aged 16 and above who hold a MyKad and valid driving licence may enjoy RON95 petrol at the subsidised rate of RM1.99 per litre, compared with an estimated market price of RM2.60 per litre,” he said.
Anwar was responding to a question from Datuk Seri Dr Wee Jeck Seng (Tanjung Piai), who had asked about additional financial measures to assist urban residents and whether aid schemes would be reviewed to better reflect real living costs based on location. - October 15, 2025
