The distribution of Sumbangan Asas Rahmah (SARA) aid via MyKad should be made the primary model in reforming the country’s social assistance system, says the Federation of Malaysian Consumers Associations (Fomca).
Fomca CEO T Saravanan said the success of the initiative, including the RM100 one-off cash aid enjoyed by Malaysians since Aug 31, proves that aid can be channelled directly and efficiently to target groups without leakage.
“Fomca believes the mechanism of distributing aid through MyKad can serve as the best model for future social assistance.
“It is not only simple and fast, but also ensures that subsidies reach the right groups without misuse or leakages,” he told FMT.
Saravanan said aid credited directly through the MyKad allows citizens to purchase basic necessities cash-free at selected supermarkets, cutting bureaucracy and speeding up access to aid.
He said the MyKad system also enables the government to control the types of goods purchased, ensuring public funds are spent on essentials such as food and groceries.
“This means recipients cannot use the aid to buy harmful or non-essential products like cigarettes, vapes, or alcohol,” he said.
He described the approach as a “natural safeguard” against wastage and as a way to educate recipients to use assistance for the well-being of themselves and their families.
“The control over eligible items ensures subsidies are used for their intended purpose, such as rice, cooking oil, eggs, and kitchen essentials.
“Indirectly, it sets a clear guideline that social assistance is meant for family welfare, not wasteful or harmful spending,” he said.
Saravanan noted that while SARA’s implementation has shown positive results by benefiting more than 22 million adults, there is room for improvement to make programmes like SARA and Sumbangan Tunai Rahmah (STR) more sustainable.
He proposed several measures, including better coordination of government databases, to avoid duplication or exclusion of recipients.
“There should also be a real-time complaints system so people can quickly report technical issues or misuse, along with large-scale awareness campaigns to ensure recipients understand the approved items and how to use MyKad-based aid.
“Additionally, purchases of subsidised goods should be capped, such as limiting cooking oil to three to five packets per household within a certain period to prevent over-buying,” he said.
He added that the government could form strategic partnerships with both large and small retailers nationwide to improve access for recipients in urban and rural areas, as well as use data analytics to monitor spending patterns, evaluate programme effectiveness, and detect misuse.
On July 23, Prime Minister Anwar Ibrahim announced the one-off RM100 aid distribution for all Malaysians aged 18 and above under the SARA programme.
The RM2 billion cash aid will benefit 22 million citizens.
Purchases made using the credit via the MyKad are limited to essential goods across 14 selected product categories.
The RM100 SARA credit can be used until Dec 31 at more than 7,300 registered retail outlets nationwide.
