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Malaysia's cash aid under Sumbangan Tunai Rahmah and Sumbangan Asas Rahmah rises to RM15 billion

Prime Minister and Finance Minister Anwar Ibrahim told the Finance Ministry's monthly assembly in Putrajaya on 19 October 2026 that allocations for the Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (Sara) schemes have risen to RM15 billion, from RM8 billion when he took office.
He said fuel subsidies are estimated at RM40 billion a year to keep RON95 petrol at RM1.99 per litre.
Anwar said an additional RM18 billion has gone to civil service salary increases after nearly 12 years without a pay rise.
He said taxi drivers are being given RM1,000 each, funded from the proceeds of new vehicle registration numbers.
On subsidy rationalisation he said: "Is this necessary? In my view, it is necessary to ease the people's burden."
He also said the success of Budget 2027 depends on effective implementation, not only on policy design.

STR and Sara allocation: RM15 billion, up from RM8 billion Fuel subsidy: About RM40 billion a year RON95 price: RM1.99 per litre Civil service pay rise: An additional RM18 billion
Why it matters for exams: Targeted cash transfers replacing blanket fuel subsidies is a live policy debate in India too, and Malaysia's STR and Sara figures are a ready comparison.
Kerala PSCUPSC
20 October 2026 Source: Bernama

In plain words

STR Sumbangan Tunai Rahmah — A Malaysian cash transfer paid in phases to lower-income households.

Sara Sumbangan Asas Rahmah — A Malaysian scheme crediting money that can be spent on essential goods at registered outlets.

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