Malaysia Begins Phase 3 Cash Aid for 5.3 Million, Allocating RM1.2 Billion to Ease Living Costs

The 2026 total allocations for STR and SARA amount to RM15 billion, the largest combined package for these programs to date.
Prime Minister Anwar Ibrahim is serving as finance minister, indicating direct government oversight of the STR/SARA rollout.
SARA stands for Sumbangan Asas Rahmah and is the monthly basic aid component that runs alongside STR’s quarterly disbursements.
Malaysia's Finance Ministry has begun disbursing Phase 3 of the Sumbangan Tunai Rahmah (STR) cash aid to 5.3 million recipients starting today, with RM1.2 billion allocated for the rollout, according to Penang Today and Free Malaysia Today. Payments will be distributed in stages, ranging from RM150 to RM600 depending on household income and number of children.
The disbursement is part of a broader 2026 aid package that the government says totals RM15 billion across STR and its companion program, SARA — the largest combined allocation for these programs to date. Prime Minister Anwar Ibrahim, who also serves as finance minister, is overseeing the rollout directly.
Of the 5.3 million recipients, about 3.9 million come from lower- and middle-income households, according to Media Selangor. The remaining 1.4 million are single senior citizens, who will each receive RM150.
Larger households with more children receive higher payments, up to RM600. Sinar Daily reported that the recipient count has grown since earlier phases, reflecting the government's push to widen the program's reach. The first three STR phases in 2026 together account for RM3.6 billion in total disbursements.
This year, the government redesigned its aid structure. STR — which stands for Sumbangan Tunai Rahmah — now pays out every quarter. SARA, or Sumbangan Asas Rahmah, is a separate monthly basic aid payment that runs alongside STR, according to Free Malaysia Today.
The shift to more frequent payments is meant to give low-income Malaysians steadier support. Penang Today noted that eligible recipients can accumulate up to RM3,300 by August 2026 by combining STR Phases 1 through 3 and monthly SARA payments. A one-off SARA payment for those aged 18 and above is not included in that figure.
Prime Minister Anwar Ibrahim has stressed that the restructured program is a direct response to rising cost-of-living pressures. His dual role as finance minister puts him at the centre of decisions on how the funds are managed and distributed.
The government says improved governance means more money actually reaches those who need it. Newswav reported the overall STR and SARA allocations in 2026 are the highest yet, framing the RM15 billion package as a key pillar of the Madani Government's plan to raise incomes and living standards for ordinary Malaysians.
Publishers
10
Articles
3
Reach
13