PUTRAJAYA: Almost one third of the RM624.97mil disbursed under the Sumbangan Asas Rahmah (Sara) monthly aid programme since Jan 9 has been spent as of Jan 13.
Treasury secretary-general Datuk Johan Mahmood Merican said this proves that Sara is an effective mechanism for channelling assistance to households.
According to data from the Finance Ministry, Labuan and Sabah recorded the highest percentage of Sara spending at 36% each, while Kuala Lumpur recorded the lowest at 21% as of Jan 13.
The data also show that recipients have spent RM172.49mil, involving beneficiaries from all states and federal territories.
In addition to benefiting recipients, Johan said the disbursement of Sara and Sumbangan Tunai Rahmah (STR) has also created spillover effects and opportunities for participating traders and premises to engage in healthy competition by offering lower prices, thereby providing recipients with more spending options.
“By involving sundry shops, supermarkets and the like, what we have noticed is that they also compete to attract Sara recipients to spend at their respective outlets.
“Also, we ensure that the goods that can be purchased using Sara credits include products from local micro, small and medium enterprises,” he said.
Johan said that the ministry has intensified engagement and data cross-checking with relevant agencies such as the Social Welfare Department and the Orang Asli Development Department, in addition to conducting ground engagements in rural areas to ensure that no eligible recipients are left out.
On Jan 5, the Finance Ministry announced that Sara redemption premises had been expanded to include more small and independent shops located closer to local communities, going beyond supermarkets and large retail chains.
The ministry added that the government aims to increase the number of small shops participating in the programme to 10,000 by end 2026 to complement existing supermarket outlets.
This year, the Sara programme has seen a sharp increase in the number of recipients, involving 8.1 million people with an allocation of RM8bil, compared with 5.4 million recipients and an allocation of RM5bil in 2025.
To reduce the risk of eligible recipients being left out, new STR applications and appeals are open throughout the year via https://bantuantunai.hasil.gov.my
