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Plan to use unclaimed Sara funds to aid vulnerable groups

RM150 million to be redirected to domestic violence shelters, persons with disabilities, special-needs students and student meal banks, says finance minister II

PETALING JAYA: RM150 million in unclaimed Sara funds will be redirected to the country’s most vulnerable, Finance Minister II Datuk Seri Amir Hamzah Azizan announced yesterday, as the government steps up efforts to protect Malaysians struggling with rising living costs.

During Dewan Rakyat question time, Amir Hamzah said the unspent allocations from the 2025 one‑off Sara programme will benefit residents of domestic violence shelters, persons with disabilities, students with special needs, underprivileged patients and student meal banks.

“This includes residents of shelters under the Women, Family and Community Development Ministry, persons with disabilities and students with special needs under the Education Ministry.

“It also covers procurement of medical devices via the Health Ministry and the establishment of student kitchen meal banks, with a dedicated allocation of RM15 million under the Higher Education Ministry.”

Amir Hamzah stressed that reallocating unspent funds reflects prudent financial management while strengthening the nation’s social safety net.

“It underscores the government’s more targeted and inclusive approach in addressing social welfare challenges.”

He was responding to a question from Datuk Seri Dr Zaliha Mustafa (PH-Sekijang) regarding total Sara disbursements, local market transactions, unspent balances as of Dec 31 and planned improvements for 2026.

The minister noted that Sara transactions reached RM4.8 billion in 2025, with 99% of nearly 5.6 million recipients using the cashless MyKad system to purchase basic goods at registered outlets.

Looking ahead, frozen foods may be added as a new category, while eligible items have expanded from 10 in 2024 to 14 in 2025. Fresh produce remains under review to ensure quality and safety.

Amir Hamzah also highlighted the growth of the Sara merchant network, which now includes 10,771 partner outlets nationwide, up from 700 in 2024, with over 3,000 independent grocery stores.

“The government aims to further expand small grocery partners to 10,000 by the end of 2026, cutting the average distance to the nearest outlet from 10km to seven.”

He described these measures as part of a broader strategy to ensure Sara is inclusive, responsive and effectively targeted at Malaysians facing high living costs.

“Through the MyKad credit system, the government can monitor implementation and ensure that the targeted groups truly benefit.

“The year-on-year increase in Sumbangan Tunai Rahmah (STR) and Sara allocations shows the government’s commitment to strengthening the social safety net.”

The second round of the RM100 one‑off Sara aid will be credited next week, with RM2.2 billion allocated for all Malaysian citizens aged 18 and above. No application is required.

“The aid will automatically be loaded onto recipients’ MyKad and can be used until Dec 31 this year.

“Eligibility can be verified starting today through sara.gov.my,” said Amir Hamzah.

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