KUALA LUMPUR, October 13 — The Malaysian government has unveiled a revised cash handout scheme, known as the Rahmah Cash Aid (STR), following the rationalization of targeted subsidies planned for next year. Prime Minister Datuk Seri Anwar Ibrahim, during his Budget 2024 speech, detailed the changes aimed at assisting low-income households and addressing the rising cost of living. Under the revised STR scheme, nearly nine million Malaysians, equivalent to 60 per cent of the country’s population, are set to benefit. The main updates to the scheme include:
- Maximum Rate Increase: The maximum rate for STR handouts is raised from RM3,100 to RM3,700. This substantial increase seeks to provide more substantial financial support to eligible households.
- Minimum Rate Increase for Youth: The minimum rate for STR, specifically aimed at youth, is increased from RM350 to RM500. This enhancement acknowledges the financial challenges faced by the younger population.
- First Payment Raise: The first payment for households eligible for the STR is elevated from RM300 to RM500. This increase aims to provide crucial financial assistance before Ramadan next year, alleviating some of the immediate financial burdens for recipients.
Additionally, Anwar announced that the government plans to expand the benefits of the existing Sumbangan Asas Rahmah (SARa) incentive. This expansion will reach 700,000 STR recipients who will receive RM100 monthly for a period of 12 months. Budget 2024 allocates RM10 billion for the STR, which marks a significant increase from the previous RM8 billion. Anwar emphasized that this enhanced allocation aims to ensure that lower-income households receive the support they need.
New applications for the STR will open as early as November, and the process will remain open throughout the year, departing from the previous practice of an annual application window. The first payment, with a maximum amount of RM500, is expected to be disbursed in February 2024. Overall, the budget allocates RM58.1 billion to fund various government handouts, including subsidies, incentives, and aid.
Nearly 50 per cent of this allocation is directed at controlling the prices of essential goods and services, with the aim of benefiting the people and easing the cost of living. These changes reflect the government’s commitment to addressing the financial challenges faced by many Malaysians and ensuring that the nation’s support mechanisms align with the evolving economic landscape.
