Phase One of 2025 Rahmah Cash Contribution to be disbursed from 22 January

The government has enhanced its Rahmah Cash Contribution (STR) for Phase One of 2025. Amounting to RM2.3bn, the payout is expected to benefit 8.3mn recipients in efforts to alleviate cost of living pressures.

The Malaysian government has announced a significant increase in Phase One of its Rahmah Cash Contribution (STR) in 2025, with a total allocation of RM2.3bn. This figure surpasses the RM2.1bn distributed in the same phase last year, as part of efforts to better support citizens amidst rising living costs. This disbursement will begin on 22 January 2025 (Wednesday).

According to the Ministry of Finance, nearly 9mn Malaysians are set to benefit from the combined STR and Basic Mercy Contribution (SARA) programmes in 2025. This accounts for 60% of the adult population. The government has enhanced the rates, with household recipients receiving up to RM4,600 this year. This is a 25% increase compared to RM3,700 in 2024. Similarly, singles can look forward to a 20% rise in their minimum payment, from RM500 last year to RM600 in 2025.

YAB Dato’ Seri Anwar Ibrahim, Prime Minister and Minister of Finance, emphasised the government’s commitment to addressing economic challenges.

“Although the increase in the cost of living is a phenomenon affecting the whole world, it is the MADANI government’s hope that the increase in SARA and STR contributions every year will help the people achieve a better life,” he said.

Comparison of STR Phase One payments (2023-2025)
In 2025, the STR Phase One allocation stands at RM2.3bn, compared to RM2.1bn in 2024 and RM1.67bn in 2023. This year’s payments will be distributed among four main recipient categories.

1) Household income (≤ RM2,500): RM1.4bn to 2.8mn recipients, with RM500 per recipient.
2) Household income (RM2,501-RM5,000): RM0.2bn to 1mn recipients, with payments ranging from RM150 to RM300.
3) Seniors without spouses: RM0.2bn for 1.3mn recipients, with RM150 each.
4) Singles: RM0.5bn for 3.2mn recipients, with RM150 per recipient.

The STR Phase One payments will be credited directly to the bank accounts of eligible recipients from 22 to 28 January 2025. For those without bank accounts, cash disbursements will be available through Bank Simpanan National (BSN) branches starting 22 January.

To ensure inclusivity, the government has opened new and updated applications for STR throughout the year. Applicants not yet registered in the STR database can apply via STR Official Portal for verification.

Lead image and infographic / PM Anwar Ibrahim’s Facebook