KUALA LUMPUR - The effectiveness of Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (Sara) should not be measured solely by the amount of assistance received, but by how effectively the two schemes work together to ease the financial burden on households.
Economist Prof Emeritus Dr Barjoyai Bardai of the Malaysia University of Science and Technology said the increase in the combined allocation for STR and Sara to RM16 billion next year should be assessed based on the overall benefits to recipients, including how well the assistance meets their basic needs and improves their purchasing power.
He said this approach would provide a clearer picture of how effective the government's efforts were in helping Malaysians cope with rising living costs.
"The success of STR and Sara in 2027 should not be judged simply by whether cash assistance has increased or decreased. We need to look at the total assistance received, whether it reaches the intended groups and how effectively it improves purchasing power and eases cost-of-living pressures,” he said.
Barjoyai said the combination of cash assistance and targeted support for basic necessities allowed recipients to meet different household needs, with STR providing the flexibility to pay utility bills, transport costs and children's education expenses, while Sara helped cover the cost of essential goods.
"By providing credit specifically for essential purchases, the scheme helps reduce households' daily expenses,” he said.
He said determining whether the assistance was sufficient required consideration of the total amount received annually under STR and Sara, the number of dependants, household income, place of residence and spending patterns.
Barjoyai also welcomed the expansion of Sara to cover fresh produce and other perishable goods at farmers' markets and tamu under the Federal Agricultural Marketing Authority (Fama), saying it would give recipients greater choice in meeting their families' nutritional needs.
"Previously, the assistance was largely limited to selected grocery items. With this expansion, recipients will have more options to meet their families' nutritional needs,” he said.
He said extending Sara Madani aid to Malaysians aged 18 and above who were not STR recipients would also broaden the social safety net to include those affected by rising living costs.
Meanwhile, Universiti Teknologi MARA Faculty of Business and Management's Department of Economics and Financial Studies senior lecturer Dr Mohd Rahim Khamis said STR and Sara complemented each other in helping households afford basic necessities and cushion the impact of rising prices on daily expenses.
"Both schemes can help protect household spending on basic necessities from rising prices. Their effectiveness ultimately depends on whether recipients can continue to afford sufficient essential goods despite the increasing cost of living,” he said.
He said expanding Sara could also stimulate economic activity in the agricultural and agro-based sectors, help small and medium-sized traders earn more income and support the long-term viability of participating businesses.
Rahim said extending Sara Madani to those who did not qualify for STR was a positive move, as rising living costs also affected households beyond the low-income group.
He added that household finances should be assessed based on disposable income after taking into account financial commitments and daily expenses, rather than gross income alone.
Rahim therefore suggested that the government conduct regular assessments based on income levels, number of dependants, place of residence and spending patterns to ensure that assistance remained sufficient and met the actual needs of recipients.
Prime Minister Datuk Seri Anwar Ibrahim, when tabling Budget 2027 on Oct 9, announced that the combined allocation for STR and Sara would increase to RM16 billion from RM15 billion, with all STR recipients eligible for Sara assistance of up to RM150 a month, or RM1,800 a year.
The Finance Minister said Malaysians aged 18 and above who were not STR recipients would receive RM100 in Sara Madani assistance on two occasions, once before Aidilfitri and again in conjunction with the country's 70th National Day.
He said the assistance would benefit up to nine million STR recipients and another 13 million Malaysians, including those in the middle-income (M40) group. - BERNAMA