2027 aid totals unchanged as cash support for low-income families is reduced
Cash assistance under the Rahmah Cash Contribution will be lowered for low-income households in 2027, while the Rahmah Basic Contribution is raised, keeping overall aid levels roughly the same.
According to an Inland Revenue Board FAQ, the Rahmah Cash Contribution (STR) will be reduced again for low-income families in 2027, with cuts of up to RM600 annually for those earning less than RM2,500. To maintain overall support, the Rahmah Basic Contribution (Sara) is being increased to RM1,800 across the board. For example, a family with five children will receive RM1,600 in cash aid next year, compared with RM2,200 this year.
Childless families will see their cash aid drop by RM500 but will receive an additional RM100 in 2027. Meanwhile, families with monthly incomes between RM2,501 and RM5,000 will see no change in STR, Sara, or the RM1,200 grocery assistance. This marks the second consecutive year the government has swapped lower cash payouts for higher basic aid while keeping total assistance levels stable.
Why it matters
The shift alters how low-income households receive support, affecting cash flow for vulnerable families.
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