Malaysia Oversight

Finance Ministry: Sara aid to boost economy as RM2 billion flows to small traders

By MalayMail in September 4, 2025 – Reading time 2 minute
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KUALA LUMPUR, Sept 4 — The implementation of the Sumbangan Asas Rahmah (Sara) will not only ease people’s burden, but will also be a catalyst for domestic economic activity with benefits flowing to small retailers and local suppliers.

Ministry of Finance (MOF) deputy secretary-general for treasury (policy) Datuk Zamzuri Abdul Aziz said over RM2 billion is allocated this year to 22 million adult recipients, with every ringgit spent having a huge multiplier effect on the supply chain.

“Every RM1 spent can generate a value of up to RM2.43 when shared within the business chain, from small shopkeepers to local manufacturers. This is the real economic impact we want to see,” he said on Bernama TV’s Ruang Bicara programme on Wednesday.

He said more than 7,300 premises nationwide are involved, almost 2,000 of which are small retailers, including those in rural areas.

“When stocks move fast, small traders get faster capital turnover, and local suppliers get new orders. The local community economy moves simultaneously,” he said.

In addition, Zamzuri said recipients should plan their purchases throughout the period until Dec 31, avoid peak times, and utilise assistance based on needs.

“For example, school supplies can be purchased when the school season is approaching. This long period gives people time to manage their necessities,” he said. 

He also encouraged those who can get by without the cash aid to purchase and donate the items to authorities such as the Social Welfare Department (JKM) or through community packages provided by supermarkets.

The government announced a one-off Sara assistance worth RM100 for all Malaysian citizens aged 18 and above, benefitting approximately 22 million people, amounting to RM2 billion.

This assistance can be redeemed from August 31 to December 31, 2025, at over 7,300 premises nationwide, offering people many choices of location and time to purchase necessities.

Sara can be redeemed to purchase 14 categories of necessities, namely rice, bread, eggs, cooking oil, flour, biscuits, instant noodles, beverages, canned food, seasonings, personal hygiene products, household cleaning items, medicines and school supplies.

The MOF also encourages the public to refer to SARA’s official website at http://www.sara.gov.my for more information. — Bernama

 

 

 



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