KUALA LUMPUR – The Sumbangan Asas Rahmah (SARA) financial aid programme for the B40 group should also be extended to the M40 income group, urged Senior Analyst and Consultant at Global Asia Consulting, Samirul Ariff Othman.
Speaking to Scoop, he said that while the B40 income group and other vulnerable groups should remain the priority, financial aid could also be provided to individuals in the M40 income bracket.
“However, M40 inclusion should be risk-based, not blanket. M40-but-strained households—those with high dependents, high rent, medical burdens, sudden job loss, or urban cost pressures—can be considered,” he explained.
Samirul added that eligibility could be determined using income data along with EPF and SOCSO records to reduce administrative friction, and stressed that the financial aid should be redesigned as a stabiliser.
“Keep it counter-cyclical—bigger in downturns or inflation spikes, smaller when conditions normalise. That protects households without locking in permanent fiscal drift,” he said.
At the same time, Samirul noted that more aggressive initiatives are needed to tackle poverty in the country.
“Aid provides relief, not an exit. A serious poverty-reduction strategy requires ‘escape velocity’ policies: jobs ladder, not just cash ladder,” he said.
He also highlighted sector-based pathways, such as care economy, logistics, food processing, basic digital services, and construction upgrading, tied to guaranteed training and placement opportunities.
Meanwhile, economist Dr Geoffrey Williams praised the monthly SARA payments to 8.1 million adults.
“It provides a regular income source that people can rely on. It also covers one-third of adult Malaysians,” he said.
He also described the one-off RM100 payment to all Malaysians as a step towards a universal basic income top-up.
When asked whether these measures help reduce poverty, Geoffrey noted that the poverty rate is declining.
“Absolute poverty has almost been eradicated, the minimum wage has raised incomes for millions of workers, and cash aid schemes are being expanded. These can be rationalised and made more effective and efficient, but great progress has already been made under the Unity Government,” he said.
Earlier, Prime Minister Anwar Ibrahim announced that the SARA one-off payment of RM100 to all Malaysians aged 18 and above will be distributed starting February 9, while the monthly payment of RM50 to RM200 will begin on January 9. — January 6, 2026