Malaysia disburses RM1.1 billion in the fourth phase of STR to 5.4 million recipients

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STR phase 4 distributed

Highlights

The government is distributing RM1.1 billion in the fourth phase of STR to 5.4 million recipients, with payments running from 4 November to 16 November.
Of the total, four million households earning RM5,000 or less will receive up to RM500, while 1.4 million single senior citizens will receive RM150.
The allocation for STR and SARA in 2026 is expected to reach RM15 billion, almost three times the amount allocated to BR1M in 2016.

This article was translated from the original. Read the original version by our correspondent here.

Payment schedule and recipient groups

As reported by The Edge Malaysia, citing the Ministry of Finance, payments to existing recipients are being made in stages from 4 to 6 November, while newly approved applicants and successful appeal cases will receive payments starting 16 November. Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim said this in a statement issued by the ministry on Wednesday.

Of the 5.4 million recipients, four million are households earning RM5,000 or less, while the remaining 1.4 million are single senior citizens. Eligible households will receive up to RM500, while single senior citizens will receive RM150.

Recipients with bank accounts will receive payments directly into their accounts, while those without bank accounts can claim the cash assistance at any Bank Simpanan Nasional (BSN) branch.

The role of assistance in household spending

Anwar said assistance provided through STR and Sumbangan Asas Rahmah (SARA) is part of the government’s efforts to channel national resources to those in need and ensure a more dignified standard of living for Malaysians.

He said the latest disbursement is expected to help ease the financial burden on families celebrating Deepavali, particularly the Indian community, which accounts for more than 630,000 STR recipients. The assistance is also intended to help other recipients manage daily needs and year-end expenses.

At the same time, the government reminded 1.68 million recipients who have not updated their application details for three consecutive years to do so through the official STR portal, so their eligibility can be reassessed for 2027. Anwar said the government’s financial restructuring and improvements to governance have made it possible to channel more national revenue to those in need. The total allocation for STR and SARA in 2026 is set to reach RM15 billion, almost three times the amount disbursed under the 1Malaysia People’s Aid programme (BR1M) in 2016.

In our earlier report on MARC Ratings’ warning following the Budget 2027, we highlighted the need for Malaysia to strengthen its fiscal buffers amid increasingly frequent global shocks and the risk of an extended period of high interest rates and bond yields. The article also outlined how the government’s substantial spending commitments and limited fiscal headroom have prompted proposals such as broadening the tax base and improving targeted subsidies to support fiscal consolidation and economic resilience.

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