2026 budget largely a ‘win’ for the public, say consumer groups

2026 budget largely a ‘win’ for the public, say consumer groups

The Malaysia Consumers Movement and Fomca express generally positive reactions about how the national spending plan will put the people first.

MCM legal adviser Sukhdave Singh praised the government’s ongoing Sumbangan Tunai Rahmah initiative, saying it will give vulnerable groups access to essentials.
PETALING JAYA:
Consumer groups and activists have reacted to the 2026 budget with both optimism and caution, particularly as regards the continuation of the government’s Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA) aid initiative.

Malaysia Consumers Movement legal adviser Sukhdave Singh praised Putrajaya’s use of “redeemable cashless vouchers” for the STR, calling it “one of the best initiatives rolled out by the government thus far”.

Sukhdave Singh.
Sukhdave Singh.

He said the programme will help ensure that vulnerable grounds will have continued access to essential goods, while providing some relief from the pressures of rising living costs.

Sukhdave was, however, less effusive about the announcement that 22 million Malaysians aged 18 and above will receive another RM100 in SARA aid this February.

“While overall the budget is good, we think it could be better.

“(The new RM100 aid) is contrary to the government’s pledge to channel subsidies to targeted groups. This deprives the people who need (aid) the most.

“The government should be directing aid at targeted groups and increasing allocations per eligible recipient,” he told FMT.

When tabling the budget on Friday, Prime Minister Anwar Ibrahim said a total of RM15 billion has been allocated for SARA next year — an increase boosted by savings generated through the implementation of targeted diesel and RON95 subsidies.

He also said some nine million STR recipients will receive monthly aid of RM100 throughout next year, totalling  RM1,200 per person.

T Saravanan
T Saravanan.

Fomca CEO T Saravanan praised the budget for its “people-first approach” and for “continuing to prioritise assistance for families” through STR and SARA.

He said the ongoing subsidy rationalisation enables aid to be more effectively targeted at vulnerable households.

Saravanan also welcomed the announcement of amendments to the law, expected next year, which will provide legal resource for consumers who unknowingly purchase defective vehicles — commonly referred to as the “lemon law.”

He said the federation has repeatedly demanded that such a law be put in place to protect car buyers.

“Fomca strongly supports the government’s commitment to amend the Consumer Protection Act 1999 to incorporate a ‘lemon law’. Its inclusion marks a major victory for consumers.

“This measure not only prevents financial losses for consumers but also raises accountability and quality standards across industries. Malaysia is now on par with progressive countries such as Singapore and South Korea,” he said in a statement.

Sukhdave was also welcoming of the news, saying MCM has advocated its introduction for some time as “consumer protection has been lacking, especially for defective vehicles”.

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