Malaysia’s government announced it will prioritize funding the Basic Rahmah Contribution (SARA) programme in the 2027 budget to help lower-income citizens cope with the cost of living. Finance Minister II Datuk Seri Amir Hamzah Azizan made the announcement on August 16 after reviewing SARA implementation in Tawau, confirming the programme remains a top priority despite global economic challenges [1, 2, 3].
In 2026, the government allocated RM15 billion for the combined SARA and Rahmah Cash Contribution (STR) programmes. Nearly nine million recipients benefited from SARA last year, with a utilization rate of 99 percent. "Almost nine million SARA recipients with 99 per cent benefiting from it, thus proving that this programme truly reaches the target group at the grassroots level," said Amir Hamzah [1, 2].
Malaysia’s economy continues to show strength amid geopolitical tensions and uncertain global markets. The country’s GDP grew 5.2 percent in 2025 and accelerated to 5.4 percent in the first quarter of 2026, then to 6.0 percent in the second quarter, resulting in an average growth rate of 5.7 percent so far this year. The implementation of the MADANI Economic Framework has played a key role in sustaining this growth momentum [1, 2, 3].
The unemployment rate remains below 3 percent while inflation is controlled at 1.9 percent due to effective government policies. Amir Hamzah highlighted, "This situation supports economic growth with the unemployment rate remaining low below three percent in addition to the inflation rate being controlled at 1.9 per cent through effective action plan initiatives" [2].
"This effort is effective in helping those who may not have enough to meet the cost of living, so this is one of our priorities," said Amir Hamzah [1]. The government’s focus on SARA reflects its aim to provide targeted aid to vulnerable groups despite economic uncertainties.
The continuation of the SARA programme in the 2027 budget will be a key part of Malaysia’s social support measures as it maintains economic stability and growth. Officials plan to finalize budget allocations in the coming months ahead of the new fiscal year.
