What To Expect From The Government’s New Relief Initiatives

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What To Expect From The Government’s New Relief Initiatives

Prime Minister Datuk Seri Anwar Ibrahim has just made an announcement, revealing a series of relief initiatives aimed at easing the financial burden of Malaysians amid persistent concerns over the cost of living. This includes direct cash assistance, a fuel price reduction, and a toll hike freeze, comes at a crucial moment as public frustration continues to grow over inflation and rising daily expenses.

The following are some of the relief measures that were announced:

One-off RM100 cash aid (SARA) for adult citizens

All Malaysians aged 18 and above will receive a one-off RM100 credit via their MyKad under the Sumbangan Asas Rahmah (SARA) programme. This aid will be usable from 31 August to 31 December 2025.

The cash can be spent on essential goods at over 4,100 outlets throughout Malaysia. It is also individual-based, not household-based. This means a family of four adults will receive a total of RM400. 

By this estimate, approximately 22 million people are expected to benefit from this payout, totaling a RM2 billion application. This brings total Sumbangan Tunai Rahmah (STR) and Sara allocations for 2025 to RM15 billion – the highest ever.

RON95 price lowered to RM1.99 per litre

The government has announced a reduction in the price of RON95 petrol from RM2.05 to RM1.99 per litre.

This fuel subsidy will only apply to Malaysian citizens, while foreign nationals will be excluded and will need to pay market rates. Full details will be announced by the end of September.

Toll hikes postponed on 10 highways

A freeze has also been put on plans to increase toll rates on 10 major highways. Affected highways include:

  • Senai-Desaru Expressway (SDE)
  • East Coast Expressway 2 (LPT2)
  • South Klang Valley Expressway (SKVE)
  • Butterworth Outer Ring Road (LLB)
  • KL-Putrajaya Expressway (MEX)

These highways were previously scheduled for rate increases under their concession agreements.

Targeted subsidies

The government is continuing with efforts to restructure electricity and fuel subsidies, ensuring that assistance is targeted specifically at eligible groups. Following recent tariff adjustments, 85 percent of domestic users experienced lower electricity bills in July this year.

These reforms are designed to curb leakages and minimise waste, while channelling national resources more effectively to those who need them most. 

September 15 declared public holiday

To celebrate Malaysia Day, Monday, Sept 15, 2025, will be a special public holiday. The move is meant to strengthen national unity and encourage Malaysians to reconnect with family and explore local destinations.

Additional Jualan Rahmah Madani programmes

The government will increase funding for the Jualan Rahmah Madani programme from RM300 million to RM600 million. This boost will allow more frequent and widespread subsidised sales across all 600 state constituencies, with a greater variety of goods offered to give shoppers more choices. More updates are expected as the programme is rolled out in stages.

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