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THE allocation for the Rahmah Cash Contribution (STR) and Basic Rahmah Contribution (SARA) has increased to RM15 billion in the 2026 Budget, compared to RM13 billion in 2025, benefiting nine million recipients.
Prime Minister Datuk Seri Anwar Ibrahim, when presenting the budget, said the increase was a result of savings achieved from targeting subsidies such as diesel and RON95.
"It is with great joy that it was announced that for 2026, all nine million STR recipients will also receive SARA of up to RM100 per month or RM1,200 per year.
"...while one million STR recipients under e-Kasih will receive SARA of up to RM200 per month or RM2,400 per year and the single category will receive RM600, which is RM50 per month through SARA," said Anwar, who is also the Minister of Finance, in the Dewan Rakyat today as reported by Bernama.
He said the maximum rate received by a household is RM4,600, which is for incomes below RM2,500 per month, with five children receiving STR of RM2,200 and SARA of RM2,400.
Based on STR and SARA aid records, Anwar said that for the Malays, it will increase to RM7.1 billion in 2025 compared to RM4.5 billion in 2022; Bumiputera Sabah and Sarawak (increased by RM1.9 billion compared to RM1.1 billion); and Indians (increased by RM1 billion compared to RM0.6 billion)
Meanwhile, Anwar said 22 million Malaysians aged 18 and above will once again receive the RM100 SARA, and it will be distributed in mid-February which can be used for Ramadan preparations and Chinese New Year celebrations.
“On August 31, all Malaysians aged 18 and above received RM100 SARA and more than 70 percent has been spent and as promised, the remaining SARA that is not used by December will be redistributed to programmes for the poor,” he said.
In addition, Anwar said that the Social Welfare Department’s aid continues to be distributed to more than 560,000 recipients with an allocation of RM3.1 billion compared to RM2.9 billion.
For RAHMAH Sales, RM1 billion is set aside for next year to address the cost of living, including RM600 million to expand the RAHMAH Umbrella program in all State Assembly constituencies nationwide.The Prime Minister said that for the first time in history, the country's hardcore poverty rate has shrunk to almost zero, which is only 0.09 percent compared to 0.2 percent, or around 7,000 households nationwide.
"This is because we are using the 2022 Food Poverty Line Income (PGK) which was previously RM1,198.
"Following the increase in the 2024 Food PGK to RM1,236, God willing, the remaining 7,000 hardcore poor will be identified before the end of this year," said Anwar. - October 10, 2025