Unity government committed to ensuring people's well-being through Rahmah cash aid

The Madani government’s initiative in implementing the Sumbangan Tunai Rahmah (STR) cash aid is seen as a very meaningful effort in helping the people face the current cost of living challenges. NSTP/AIZUDDIN SAAD

KUALA LUMPUR: The Madani government's initiative in implementing the Sumbangan Tunai Rahmah (STR) cash aid is seen as a very meaningful effort in helping the people face the current cost of living challenges.

Malaysia University of Science and Technology (MUST) economist Prof Dr Barjoyai Bardai said the government's commitment is reflected in the 2025 Budget, which includes an increase in STR and Sumbangan Asas Rahmah (SARA) allocations to RM13 billion, compared to RM10 billion previously, which is the highest increase to date.

"While the people fundamentally require various forms of other assistance, STR is a much-anticipated initiative to improve their well-being and also brings hope that the government cares and is attentive to their needs.

"Of course, it is not enough as the living cost for a family is over RM3,000 per month.

"However, when this aid supplements household income, STR becomes a meaningful amount that can ease their living," he said.

Barjoyai said STR should be continued in the future to support the people's livelihoods, but the government must establish a mechanism to implement the aid sustainably without burdening the nation's financial resources.

For this purpose, he proposed the establishment of an endowment fund through the creation of a social security institution capable of generating annual income, to ensure sufficient STR funds without relying entirely on the government's annual budget.

Meanwhile, Fellow of Psychological Operations at the Centre for Media and Information Warfare Studies at Universiti Teknologi MARA (UiTM) Dr Noor Nirwandy Mat Noordin said the distribution of STR is crucial to uplift the people's socioeconomic level by enabling them to directly benefit from the government's initiatives.

"STR also fosters a sense of reliance among the people on the government in realising targeted subsidies and shaping a more structured economic plan," he said.

During the tabling of 2025 Budget on Oct 18, Prime Minister Datuk Seri Anwar Ibrahim announced that next year, 4.1 million STR household recipients will receive SARA of RM100 per month, compared to 700,000 recipients this year.

Anwar, who is also Finance Minister said SARA aid would be credited to recipients' MyKAD starting April 2025 and can be used to purchase essential items such as food and beverages, medicine, school supplies and personal hygiene products at over 600 supermarkets and retail outlets nationwide.

Additionally, the RM3 billion increase in allocation allows the maximum amount received by households to be raised to RM4,600, compared to RM3,700. - NST