Budget 2027: Govt allocates RM80b for subsidies, STR and SARA rises to RM16b

KUALA LUMPUR, Oct 9 — The government expects to spend more than RM80 billion on subsidies, assistance and incentives next year.

Tabling Budget 2027 in Parliament, Prime Minister Datuk Seri Anwar Ibrahim said fuel subsidies were expected to remain high at RM40 billion, while assistance through the Social Welfare Department would amount to nearly RM3.3 billion.

“The government will also increase the allocation for Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA) to RM16 billion next year, up from RM15 billion this year.

“All STR recipients would receive SARA assistance of up to RM150 a month, or RM1,800 annually, benefiting up to nine million recipients.

“Non-STR recipients aged 18 and above will also receive RM100 in SARA Madani credit twice next year, once before Hari Raya Aidilfitri and another ahead of the 70th anniversary of Merdeka.

“The two payments are expected to benefit up to 13 million Malaysians, including those in the middle 40 (M40) income group,” Anwar, who is also the Finance Minister, told Parliament today.

The government will also expand the use of SARA credits to include fresh produce sold at 216 pasar tani (farmers’ market) and tamu (open-air markets) under Fama nationwide.

There are currently 15,000 SARA partner outlets, including 6,800 small grocery shops and cooperatives.

The government aims to increase the number of participating small grocery shops to 10,000 before the end of this year.

Separately, the allocation for Jualan Rahmah Madani and Jualan Agro Madani will rise to RM750 million from RM630 million, with 35,000 sales events targeted next year.

Of these, 30,000 Jualan Rahmah events will be held across all state constituencies, with greater emphasis on rural areas, low-cost housing areas and urban People’s Housing Project (PPR) communities.

The programme will also expand beyond conventional grocery shops to include vending machines, while Jualan Rahmah Madani Borong will help small traders.

Another 5,000 Jualan Agro Madani events will offer fresh agricultural produce, including fish, chicken, vegetables and fruits, at prices up to 30 per cent lower.

The government will also allocate RM250 million to expand the distribution of essential goods to rural and remote areas, including six new locations such as Kampung Terian in Penampang, Sabah, and Kampung Dato’ Godam in Pusa, Sarawak.