Malaysia Adopts Cheaper Utilities for Poor as Part of New Cost-of-Living Package

Malaysia rolled out its cost-of-living package in Budget 2026, prioritizing low-income households with expanded Sumbangan Asas Rahmah (SARA) cash aid up to RM200/month for national poverty database families, plus one-off RM100 payments to 22 million adults aged 18+. Subsidies are maintained to maintain the RON95 petrol, fishermen/smallholder diesel, and stable rice/electricity prices at lower-usage homes, which would save RM15.5B/yr of reform costs. Hardcore poverty dropped to 0.09% (7,000 households), with STR/SARA totaling RM15B in direct relief. Rural Sabah/Sarawak get transport subsidies for food/gas; civil servants/retirees receive bonuses ahead of festive seasons. PM Anwar emphasizes subsidies to Malaysians and not foreigners.

SARA Cash Aid Expansion

Cost-of-living package boosts monthly SARA to RM200 for B40 families, STR top-ups for 9M recipients.

Targeted Utility Subsidies

Lower-usage households retain affordable electricity; diesel fixed at RM1.65/L for key sectors.

Rural and Festive Relief

Sabah/Sarawak logistics aid stabilizes prices; early STR payouts aid Ramadan, CNY prep.

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