KUALA LUMPUR — The Madani government will disburse RM2 billion in cash assistance ahead of Deepavali, with the Sumbangan Tunai Rahmah (STR) Phase 4 payment brought forward to October 18 instead of November.
Prime Minister Datuk Seri Anwar Ibrahim announced the move during the tabling of Budget 2026 in Parliament today, saying it was part of Putrajaya’s effort to ease the cost of living, especially for the Indian community celebrating the festival of lights.
A 50% toll discount will also be offered for two days during the holiday.
“Although the economic figures are reassuring, we recognise the rising cost of living has become burdensome. Acknowledging this reality, cash assistance for the rakyat will be increased,” Anwar said.
This year, the government allocated RM13 billion for STR and the Sumbangan Asas Rahmah (SARA), benefitting nearly nine million recipients. Of that, RM6 billion has already been paid out in the first three phases of STR.
The SARA programme, which enables low-income households to buy essential goods such as food, medicine, and school supplies, has achieved a 98% utilisation rate. It now supports purchases in 8,400 outlets nationwide, including 2,000 small sundry shops.
Anwar said the scheme would be expanded to include more rural retailers and cooperative outlets, as well as additional local products.
For 2026, SARA benefits will be increased. All nine million STR recipients will receive up to RM100 monthly, or RM1,200 annually.
Around one million households listed under the e-Kasih database will qualify for RM200 a month, or RM2,400 annually.
Singles will be entitled to RM50 a month, amounting to RM600 a year.
Households earning below RM2,500 with five children will receive the maximum combined benefit of RM4,600, comprising RM2,200 under STR and RM2,400 from SARA.
In addition, all Malaysians aged 18 and above will again receive a one-off RM100 SARA payment in February 2026. The assistance, also provided in August this year, is meant to help families prepare for Ramadan and Chinese New Year.
The total STR and SARA allocation for 2026 will rise to RM15 billion, funded by savings from subsidy rationalisation, including reforms to diesel and RON95 petrol.
Addressing perceptions that aid is distributed unevenly, Anwar said STR and SARA allocations had increased across all groups: Malays saw a rise from RM4.5 billion in 2022 to RM7.1 billion this year; Bumiputera in Sabah and Sarawak from RM1.1 billion to RM1.9 billion; and the Indian community from RM600 million to RM1 billion. — October 10, 2025