SARA cashless aid programme records 98% usage as government denies rural delays

DEPUTY Minister of Finance Lim Hui Ying has reaffirmed the effectiveness of the Sumbangan Asas Rahmah (SARA) programme in supporting Malaysia’s low-income groups, particularly the B40, while rejecting allegations of delays in rural disbursements.

Speaking during the Dewan Rakyat’s Question Time session today, she explained that more than 5.34 million SARA recipients, or 98% of eligible individuals, have already used their MyKad-linked credit at registered retail outlets to purchase essential goods — translating to over RM3.3 billion in spending as of 13 October.

“SARA is a non-cash aid channelled directly via MyKad and is redeemable at registered Rakan Niaga outlets,” Lim stated. “This approach ensures transparency and allows the government to monitor aid usage, targeting only the intended groups.”

The response came following a query from Siti Zailah Mohd Yusoff (Rantau Panjang), who asked about the scheme’s effectiveness and reports of implementation delays in rural areas.

The government strongly refuted such claims, citing 99% utilisation rates in states like Perlis, Sabah, Sarawak, Kelantan, Terengganu, and Kedah — most of which encompass vast rural territories.

“The programme is well received, including by elderly and vulnerable groups, as it requires only the recipient’s MyKad. The alleged rural delay is not supported by our data,” she said.

To further enhance accessibility, the government has expanded the network of Rakan Niaga SARA to 8,400 participating outlets, including supermarkets, mini-markets, cooperatives, and village shops — covering both urban and remote areas.

In addition to monthly aid, a one-off SARA grant was disbursed to 22 million Malaysian adults, with 75% of recipients having spent the credit, amounting to RM1.42 billion to date.

Looking ahead, Lim confirmed that RM15 billion has been allocated for STR and SARA programmes in 2026, compared to RM10 billion in 2024, reflecting a significant increase in social spending.

“These initiatives are part of the government’s broader commitment to eradicate hardcore poverty and provide targeted support to those most affected by the rising cost of living,” the Ministry concluded. - October 14, 2025