In a statement, the finance ministry said the amount was an increase from the RM2.1 billion allocated last year.

Prime Minister Anwar Ibrahim, who is also finance minister, said the increased allocation was aimed at ensuring that a large segment of the population would be able to cope with the rising cost of living.

“Although the rise in the cost of living is a global phenomenon, the government hopes that the increase in Sumbangan Asas Rahmah (Sara) and STR will help the people achieve a better standard of living,” he added in the statement.

Overall, the government has provided a boost to the STR and Sara initiatives this year, with allocations rising to RM13 billion from RM10 billion.

The initiatives will benefit nine million recipients or 60% of the adult population.

The increase will also allow households to receive a maximum of RM4,600 in aid, a hike of almost 25% compared to RM3,700 last year.

Unmarried and elderly Malaysians can receive RM600, a 20% increase from RM500 last year.

The payments will be disbursed in stages through bank account credit or cash payments via Bank Simpanan Nasional, based on recipients’ eligibility.

New applications can be submitted throughout the year via the official STR portal.