PETALING JAYA: The Penang Hindu Association has warned that Budget 2026’s cash handouts and targeted subsidies are losing their punch as the cost of living continues to outpace financial aid.
Its president Datuk P. Murugiah said while programmes such as Sumbangan Tunai Rahmah, Sumbangan Asas Rahmah and the Budi95 fuel subsidy remain in place, their real value has shrunk.
“The handout amounts have not increased in line with rising prices. With inflation expected at 3% to 3.5% next year, what RM100 buys today would be less tomorrow. The amount stays the same, but everything costs more.
“Many elderly people continue to face neglect or lack proper retirement support. Even with the Senior Citizens Fund, capacity must be increased to meet demand,” he said.
He added that B40 families are struggling to make ends meet despite the aid.
Murugiah said tax incentives in Budget 2026, such as the RM4,000 EPF matching grant and stamp-duty exemptions, benefit only those with savings or plans to
buy property.
“These measures do not help the poorest households because they simply do not qualify,” he said.
He urged the government to review subsidy amounts annually to keep pace with inflation and ensure constituency funds are used transparently and reach those in need.
Murugiah called for a stronger
social security scheme covering informal workers through a pension-style model, as well as free electricity for eligible households via rooftop solar installations under the Solar for Rakyat programme.
