Assessing the role of cash transfer programs in addressing Malaysia’s cost-of-living challenges

In recent years, the rising cost of living has become a pressing concern for many individuals and families. The steady rise in essential expenses such as housing, transportation, food, and healthcare has not been matched by a corresponding increase in household income. This growing disparity has placed considerable financial strain on households, particularly those in low-income and middle-income groups. As a result, people are forced to make difficult trade- offs, often sacrificing health, well-being, and quality of life to make ends meet. Furthermore, this growing economic strain affects daily living and contributes to long-term mental and physical health challenges, highlighting the urgent need for systemic support and sustainable solutions. In response to these challenges, the Malaysian government has implemented targeted social assistance initiatives such as the Sumbangan Asas Rahmah (SARA) and MyKasih programmes. These efforts are designed to alleviate financial burdens by enhancing access to essential goods for vulnerable groups. Through SARA, direct financial support will be extended to approximately 700,000 low-income individuals nationwide, reflecting the government’s commitment to inclusive and sustainable welfare policies.