PUTRAJAYA, October 19 2026, The government remains committed to maintaining financial assistance for Malaysians despite rising global oil prices and increasing cost-of-living pressures, Prime Minister Datuk Seri Anwar Ibrahim said.
He said allocations for Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA) had risen to RM15 billion, compared with RM8 billion when his administration took office.
Speaking at the Finance Ministry’s monthly assembly here today, Anwar said Budget 2027 was designed to address the country’s economic needs while ensuring development benefits reached all segments of society.
He said the government was also sustaining fuel subsidies to ease the public’s financial burden, with annual costs estimated at RM40 billion to maintain RON95 petrol at RM1.99 per litre.
However, he stressed that subsidies must be better targeted to reduce leakages and ensure assistance reached those who needed it most.
On civil service salaries, Anwar said an additional RM18 billion had been allocated for pay increases following nearly 12 years without an adjustment.
He said the move aimed to provide fairer remuneration while encouraging civil servants to improve service delivery, prevent wastage and combat corruption.
The government was also prioritising low-income households and gig workers, while ensuring that public assistance complemented rather than replaced individual earnings.
Anwar also highlighted a RM1,000 assistance initiative for taxi drivers, funded through proceeds from new vehicle registration numbers.
He stressed that economic growth, investment and technological advancement must be accompanied by efforts to tackle low wages, high rental costs and rising prices of essential goods.
He further called for a more balanced distribution of development funding among states, particularly those facing greater challenges in poverty reduction, flood mitigation and basic infrastructure despite having lower revenue.
-BERNAMA
