Anwar says savings made higher Budget 2027 assistance possible

Better management of Malaysia’s finances has freed up money for additional public assistance in Budget 2027, Prime Minister Anwar Ibrahim said on October 10. The budget raises combined funding for Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA) to RM16 billion, compared with RM15 billion previously.

During a special budget interview in Putrajaya, Anwar said the government had first addressed debt and pressing expenditure needs. These included facilities for schools and housing for police and military personnel. He said savings could now be directed towards the public, provided financial discipline continued and leakages did not recur.

The budget provides every STR recipient with up to RM150 monthly, or RM1,800 annually. Adults aged at least 18 who are Malaysian and do not receive STR will get RM100 through Madani SARA on two occasions: ahead of Aidilfitri and for the country’s 70th National Day.

According to Anwar, the two initiatives will reach up to nine million STR recipients and 13 million Malaysians, with the middle-income M40 group included. Early Schooling Aid will rise to RM200 from this year’s RM150; RM1 billion has been allocated to benefit 5.3 million students.

A separate RM1,000 one-off payment will go to 38,000 drivers of taxis and rental cars, alongside 15,000 school bus drivers across the country. The assistance follows proceeds from sales of the special ‘H’ registration plates.

Anwar, who also holds the finance portfolio, said welfare initiatives could be rolled out gradually as national finances permitted. He cited sports shoes and assistance for padi farmers and rubber smallholders as other measures enabled by improved governance.