Opposition Promises RM500 Cash Per Month Instead Of “Restrictive SARA”
Meanwhile, the STR and Sara programmes were restructured in both its forms and amount while ensuring recepients still receive the same yearly value.
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At the recent 2026 Budget debate in parliament, opposition leader and Larut Member of Parliament Datuk Seri Hamzah Zainudin said Perikatan Nasional (PN), should it become the government, will introduce Bantuan Prihatin Nasional (BPN) — a cash aid initiative of RM500 a month (RM6,000) per year for eligible households.
According to Hamzah, the cash aid of RM500 per month is far better than the Sumbangan Asas Rahmah (Sara) programme, which he said is conditional and restrictive.
“We know we can do it. This is different from aid that is conditional and limited like the Sara scheme that restricts the people’s choices.
“With Sara money, you can’t buy this, you have to spend on that. What is this? PN will give assistance and leave it to the people, whatever they need,” he said.
STR and Sara restructuring
The government’s Sumbangan Tunai Rahmah (STR) cash aid programme has been restructured under Budget 2026, introducing adjustments to both its form and amount — while ensuring that recipients still receive the same total annual value of assistance.
Under the new structure, the cash component of STR will be reduced, while credit for essential goods purchases, known as Sumbangan Asas Rahmah (Sara), will be increased, according to a report by Malaysia Kini.
Specifically, STR payments will be cut by RM300 across all household categories, but this will be offset by a RM300 increase in Sara credits, raising the minimum annual Sara value to RM1,200.
Households listed under the e-Kasih database will continue to receive an additional RM1,200 in Sara assistance, bringing their total annual credit for essential purchases to RM2,400.
Exception for senior citizens, younger singles to transition fully to Sara
The only group exempted from the STR reduction are single senior citizens earning below RM5,000 a month. Their STR payment of RM600 will remain unchanged, while their Sara benefit will rise from RM450 to RM600 annually.
Meanwhile, single individuals below 60 years old will no longer receive STR cash aid starting in 2026. Instead, the RM600 cash received this year will be converted into Sara credits, usable for purchasing daily necessities.
This restructuring does not include the separate RM100 Sara credit that will be distributed to all Malaysians aged 18 and above in February 2026.
Further details on the restructured aid scheme are available in the official Budget 2026 documents released by the government.
Budget 2026 highlights
Tabled by Prime Minister Datuk Seri Anwar Ibrahim, Budget 2026 outlines a whopping RM470 billion expenditure plan for Malaysia next year, with a focus on easing living costs, rationalising subsidies, and accelerating the transition towards a low-carbon economy.
Tightening subsidies and introducing carbon tax
As part of its fiscal reform, Putrajaya plans to reduce overall subsidy spending by 14% compared to 2025, while gradually phasing in targeted subsidies for fuel and essential goods.
A major policy change comes with the introduction of a carbon tax — set to begin in 2026 — targeting high-emission industries such as iron, steel, and energy. The move aligns with Malaysia’s commitment under the National Energy Transition Roadmap (NETR) and aims to push industries toward greener practices.
Excise duties on alcohol will rise by 10% starting 1 November 2025, while tax exemptions for Langkawi and Labuan vehicles will be limited to cars priced below RM300,000.
Investing in high-tech and energy ransition
Budget 2026 places strong emphasis on strategic investments, particularly in semiconductors and electrical & electronics (E&E) — key sectors driving Malaysia’s industrial competitiveness.
The government and its investment-linked bodies, including GLCs and GLICs, will mobilise RM16.5 billion in new investments to strengthen local industries and attract foreign participation.
Additionally, RM150 million has been allocated to the National Energy Transition Fund (NETR) to support renewable energy adoption and the development of a low-carbon economy.
Reliefs for families, homebuyers, and workers
To help Malaysians cope with rising costs, the government announced several tax reliefs and exemptions:
- Childcare tax relief expanded from covering children up to 6 years old to 12 years old, capped at RM3,000.
- Stamp duty exemption for first-time homebuyers (up to RM500,000) extended until end-2027.
- Foreign property buyers (non-permanent residents) to face 4%–8% stamp duty on purchases.
- 10% tax deduction for converting or renovating commercial buildings into housing, up to RM10 million.
- A new RM1,000 tax relief for spending on domestic tourism and cultural events.
The stamp duty exemption threshold for employment contracts will also rise significantly — from RM300 to RM3,000 per month — to ease costs for lower-income workers.
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