Economists have cautioned that an unchanged total in government aid for low-income families risks masking a squeeze on household cash, as credit for groceries cannot cover rent, utilities, and transport costs.

The alert came after it was reported that Putrajaya will slash cash aid for disadvantaged families under the Rahmah Cash Contribution (STR) next year, with the reduction offset by an increase in Rahmah Basic Contribution (Sara) grocery credits.

STR is a cash payment to lower-income households, singles, and senior citizens without a spouse, while Sara, regarded as an extension of STR, is a monthly amount credited to recipients’ MyKad and can be spent only on approved categories of essential goods at participating retailers.