Clarification to The Star on SARA and Penghargaan SARA

Dear Editor,

We thank The Sunday Star for its coverage of the Sumbangan Asas Rahmah (SARA) and Penghargaan SARA programmes in the 7 December 2025 issue.

The articles highlighted several concerns raised by recipients and consumer groups regarding the implementation of these programmes, which could be based on lack of understanding of the programmes. The Ministry of Finance (MoF) hopes that the following clarifications will help address several of these concerns and correct the misinformation.

Redemption period for SARA and Penghargaan SARA

A key criticism highlighted across the three articles concerned what was perceived as a limited window to utilise the SARA credits. One article quoted the Federation of Malaysian Consumers Associations (FOMCA) as proposing a three-month redemption period, describing it as “feasible and balanced” and suggesting it would allow recipients to plan their purchases more comfortably.

In reality, the redemption window for the SARA and Penghargaan SARA credits is far more flexible than perceived. As stated in the MoF’s press release dated 21 August 2025, the RM100 Penghargaan SARA credit remains valid until 31 December 2025.

Similarly, monthly SARA credits do not expire each month. As clearly stated on the official SARA portal (https://sara.gov.my), unused monthly credits automatically carry forward and accumulate throughout the year. Recipients therefore have full discretion to redeem their total balance at any point up to 31 December 2025, including in a single transaction if they so choose.

Penghargaan SARA and SARA are two separate programmes with similar mechanisms

The articles appeared to conflate the monthly SARA programme with the one-off Penghargaan SARA initiative, treating them as a single scheme. For example, in the article titled “Aid scheme framework doesn’t reflect B40 realities, say groups”, SARA was described as providing RM100 in credit — when, in fact, eligible recipients receive up to RM2,100 a year, credited monthly.

To avoid further confusion, the key distinctions between SARA and Penghargaan SARA are set out in the table below.

The MADANI Government’s intention is to ensure that B40 households receive consistent social assistance throughout the year, not a single RM100 top-up. In addition to the monthly SARA credit, each B40 household member aged 18 and above also receives the RM100 Penghargaan SARA credit — effectively supplementing the total support available to the household.

FOMCA’s recommendations are already implemented

In the article “Aid scheme framework doesn’t reflect B40 realities, say groups”, FOMCA urged the Government to broaden the list of items eligible for purchase under SARA and Penghargaan SARA, “to better reflect real household necessities, particularly among families with children.” The group further proposed allowing essential fresh produce, personal care items and baby products, as well as expanding participation to smaller retailers and cooperatives in rural and semi-urban areas.

The MoF wishes to clarify that many of these recommendations are already in place. Personal hygiene products — including those for toddlers — are one of the 14 approved categories under SARA. This category covers toothpaste, sanitary pads, soaps and shower gels, and disposable diapers. In addition, baby formula is included under the beverage category.

In total, more than 100,000 stock-keeping units (SKUs) across 14 categories are eligible for purchase using SARA and Penghargaan SARA credits. Most participating retailers have complied with the MoF’s request to clearly display the SARA logo on shelves to identify approved products.

Since SARA’s launch in 2023, the MADANI Government has consistently expanded the programme’s reach — from the number of recipients (from 210,000 at launch to 5.4 million in 2025) to the scale of allocations, the breadth of eligible SKUs, and the network of participating merchants.

Further, the number of registered retailers has grown from 424 outlets in 2023 to over 8,000 as of 7 December 2025, including standalone sundry shops and mini markets. In addition, nationwide outreach tours have been conducted to ensure that rural communities can access participating brands without travelling long distances.

It should also be emphasised that the monthly SARA programme complements the Sumbangan Tunai Rahmah (STR) cash assistance. For essential goods not included under the SARA categories, recipients may utilise their STR cash aid at their discretion, ensuring that no household is restricted in meeting broader daily needs.

Congestion during Penghargaan SARA’s launch was temporary

The Consumers’ Association of Penang (CAP) expressed concern that a “rush to redeem the aid within a limited window” had resulted in congestion, long queues and frustration among beneficiaries. This characterisation does not reflect the structure of the programme, nor the actual cause of the temporary congestion experienced.

The surge in transactions occurred specifically on 31 August 2025, the day Penghargaan SARA was disbursed. Unlike the monthly SARA programme, which currently supports 5.4 million recipients, Penghargaan SARA is provided to all Malaysians aged 18 and above. This expanded the eligible pool to approximately 22 million people overnight, cutting across all income groups. The initial transaction volume spike was driven largely by non-B40 users redeeming the RM100 credit immediately upon disbursement, which placed unusual pressure on payment terminals on that first day.

The MyKasih Foundation (the non-profit partner administering both SARA and Penghargaan SARA through its proprietary MyKad-based system) responded promptly. Within four days, MyKasih had increased its terminal processing capacity threefold. As a result, the combined successful transaction rate for SARA and Penghargaan SARA rose from 79% on 31 August to over 99% by 3 September 2025, and has remained stable since. The temporary issued was addressed rapidly, and did not impede beneficiaries’ access beyond the initial surge.

Looking ahead to the next Penghargaan SARA, slated to be disbursed in February 2026, the upgraded capacity is expected to accommodate the anticipated transaction load of approximately 22 million eligible users.

It is also important to note that SARA and Penghargaan SARA credits are valid for use throughout the year, not within a narrow window. There is therefore no requirement for recipients to redeem their credits immediately upon receipt, and congestion during the 31 August 2025 launch should not be construed as evidence of any operational limitation.

The MoF trusts that The Star, as one of the country’s most established news organisations, will continue to uphold its responsibility as a conscientious fourth estate by presenting the full and accurate picture of both SARA and Penghargaan SARA.

For further clarity, members of the public are encouraged to refer to the detailed FAQs on the official SARA portal (https://sara.gov.my), which outline the mechanics, eligibility and usage of both programmes.

Ministry of Finance
Putrajaya
9 December 2025