3 Thoughts on Malaysia’s BUDI and SARA Handouts

For the last half of 2025, Malaysians have been enjoying government subsidies like the BUDI95 and Bantuan SARA100. These are financial contributions for all Malaysian citizens to help ease the cost of living.

Under the programmes, petrol prices are capped at RM1.99 per litre, and cash handouts of RM100 are allocated for household groceries like rice, flour, eggs, and cooking oil. Both subsidies are distributed through the MyKad, the national identity card, with apparently more aid to come. As citizens enjoying the benefits, what are we to make of these handouts?

What is a welfare state?

Before we process our newfound joy, let’s get this definition clear: an ideal welfare state is a perfect model of provision where the government accepts the responsibility of providing comprehensive and universal welfare for its citizens.

This includes healthcare, education, minimum income, and social benefits for the vulnerable like the sick, unemployed or elderly. The purpose of a welfare state is to protect the well-being of its citizens based on the principles of equal opportunity.

Malaysia, therefore, is not a fully welfare state. In fact, no country in the world is, though Western European and Nordic nations lead the way. The UK, France, Sweden, Denmark and Finland are some examples.

1. Let’s count our present blessings

Put in perspective, RM100 may be a lifesaver for a low-income family, or pitiful pocket change for high earners. If shopping frugally, RM100 can get a family about two packs of instant noodles (ten inside), two cans of tuna, two loaves of bread, a big Milo pack, one bottle of laundry detergent, two bars of soap, two toothpaste tubes, and a tray of 30 eggs.

There are many arguments against cash aids, like creating dependency and not addressing root causes. However, seeing as SARA is a blanket token for all Malaysians regardless of income and ability, one could see it as more of a gift, the way festive money is a “bonus” and not a source of income. Very few people would say no to “free” money, so let’s take it in stride and count it a blessing.

2. Let’s be the solution and not the problem.

No system and no country is perfect. Even Sweden, with its “Swedish model” regarded as the gold standard of a modern welfare state, has its drawbacks and was strained at various times throughout the decades, with issues like high public sector debt, high tax burden to sustain the welfare state, and a large ageing population.

Social justice issues, like poverty and unemployment, can hardly be solved in a day. Often, the change needed is structural and there is no immediate result. This could lead to endless complaints and falling into a negative mindset, as the problem seems so huge and out of the average person’s control.

If there’s one thing we could do on a national scale, it would be to exercise our right to vote. That is the basic duty of all citizens. On a community level, one could spearhead grassroots efforts within the home, school, church, or friend group. Taking a small step to be part of the solution is better than criticisms that don’t move the needle forward.

3. Let’s look out for those who need help.

One of my favourite television programs is Mister Rogers’ Neighbourhood. Sadly, I never watched his shows as a child, as they were not shown on Malaysian TV in the 90’s (back then we only had Doraemon and Superhuman Samurai). I only discovered him a few years back when Tom Hanks was cast in the docudrama A Beautiful Day in the Neighborhood.

In it, Mister Rogers says, “When I was a boy and I would see scary things in the news, my mother would say to me, ‘Look for the helpers. You will always find people who are helping.’” This line stuck with me, and I started noticing the people who were helping. I saw them during Covid-19 and during the Hat Yai floods. I saw them in the organisations helping to get our trafficked citizens home from scam centres abroad. All this has mobilised me to pray, give, share, and support relief efforts.

Conclusion

It can be argued that the modern welfare state has its roots in Christianity. The truth is, welfare is at the very centre of God’s heart. The Old Testament books are filled with calls to protect foreigners, widows and orphans (Exodus 22:21-24) and to leave the harvest grains for the poor (Leviticus 23:22). In the New Testament, we see the early church creating benevolence funds to help one another (Acts 4:32-35).

Government-backed initiatives like BUDI95 and SARA100 could be seen as modern applications of the principles above. It’s a step in the right direction, as it’s aimed at benefitting the most vulnerable by covering a wide net of Malaysians regardless of income or background.

As a thought to consider, those who feel that the handouts don’t make a difference could perhaps give theirs away generously, in line with the verses referred to above. Ultimately, handouts are temporary reliefs to extend help to those in need, while a balance is struck to uphold the dignity of work and personal responsibility.

About the Author

Wan Phing Lim is a contributor to Our Daily Bread Ministries Malaysia. Born and raised in Penang, she studied Politics before turning to a career in writing. She loves coffee, books and films.

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