High Uptake of Sara Aid Shows Targeted Subsidies Are Working, Says Amir Hamzah

KUALA LUMPUR: The Sumbangan Asas Rahmah (Sara) programme has recorded strong utilisation, with nearly 5.6 million recipients spending RM4.59 billion on basic goods as of December 17, according to Finance Minister II Datuk Seri Amir Hamzah Azizan.

He said the 99 per cent usage rate reflects the effectiveness of the government’s targeted subsidy approach, particularly in ensuring assistance reaches households that need it most.

The figure includes newly approved recipients who have begun using their MyKad to purchase essential items at authorised outlets nationwide.

Amir Hamzah also highlighted the success of the one-off Sara Appreciation payment, which was extended to more than 22 million adult Malaysians.

“More than 92 per cent of recipients have already utilised the assistance, with total spending exceeding RM1.91 billion,” he told the Dewan Negara.

He explained that significant investments have been made to strengthen the Sara payment system, enabling it to cope with increased transaction volumes without disruption.

System capacity has been expanded to 7,000 transactions per minute and is expected to rise to 10,000 transactions per minute after planned upgrades by the end of 2025.

Currently, the system processes an average of 1,000 transactions per minute, providing ample buffer for stability and growth.

Amir Hamzah said these improvements have minimised technical issues and reduced the risk of misuse, reinforcing confidence in MyKad-based assistance delivery.

Although unused monthly Sara balances cannot be carried forward into the next year, he said the consistently high usage rate means this limitation is unlikely to affect beneficiaries.

The government, he added, will continue refining the system and monitoring usage to ensure the long-term sustainability of targeted subsidy programmes.

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