Nearly one-third of SARA aid spent within five days, showing programme effective

PUTRAJAYA, Jan 17 — Almost one third of the approximately RM624.97 million disbursed under the Sumbangan Asas Rahmah (SARA) aid programme since Jan 9 has been spent as of Jan 13, indicating its effectiveness in helping low-income groups cope with the cost of living.

Treasury secretary-general Datuk Johan Mahmood Merican said the data proves SARA is an effective mechanism for channelling assistance to households.

"Based on the latest data I received, nearly a third of the amount disbursed since Jan 9 has already been spent. I think this proves that SARA is an effective mechanism for channelling assistance to households," he told Bernama in an interview.

According to Ministry of Finance data, Labuan and Sabah recorded the highest percentage of SARA spending at 36 per cent each, while Kuala Lumpur was the lowest at 21 per cent as of Jan 13.

The data show SARA recipients have spent about RM172.49 million, involving recipients from all states and federal territories.

Johan said the government has implemented improvements by expanding product types and increasing registered premises for recipient convenience.

He added that the disbursement has created spillover effects, with participating traders competing to offer lower prices and provide more spending options.

The Ministry of Finance aims to increase small shop participation in SARA to 10,000 by the end of 2026, with over 3,000 small shops already registered as of Nov 23, 2025.

This year, the SARA programme involves 8.1 million recipients with an allocation of RM8 billion, up from 5.4 million recipients and RM5 billion in 2025.

Monthly SARA disbursements for 2026 began on Jan 9, benefiting five million recipients, while payments to 3.1 million single individuals started on Jan 16.