SEPTEMBER 2 — Recently, I wrote about the RM100 SARA aid as a “policy trial balloon” to shift Malaysia’s welfare system towards universalism. 

The principle of it was sound: a benefit for all citizens, functioning as a first step that could pave the way for a more inclusive social safety net. 

While the vision was commendable, the execution has been a sobering lesson in the vast gap that can exist between a policy’s intent and its real-world implementation.

The experiment has yielded its first results, and they are clear: while the “what” is a step in the right direction, the “how” is deeply flawed. 

The chaotic rollout on August 31 was marked by widespread system failures, processing delays, and an official apology from the Ministry of Finance and MyKasih. There are critical, if painful, lessons to be learnt here.

The most immediate failure was technical. On the first day of disbursement, the MyKasih system, tasked with processing payments for 22 million eligible Malaysians, buckled under a predictable surge of transactions. 

Reports flooded in of processing delays and transaction failures, leaving frustrated citizens with trolleys full of essentials they couldn’t purchase, some even forced to pay with their own cash. 

While the ministry and MyKasih worked to boost capacity, the initial failure highlights a fundamental mismatch between the chosen platform and the scale of the ambition.  

This leads to the first crucial recommendation: leverage the robust digital payment infrastructure that already exists. 

Malaysia has one of the highest mobile wallet adoption rates in the world, with e-wallet usage hitting 88 per cent in 2024. 

Platforms like Touch ‘n Go eWallet and GrabPay are part of the daily lives of millions and are built to handle immense, concurrent transaction volumes. 

Disbursing the aid directly to citizens’ chosen e-wallets would have been faster, more reliable, and would have empowered recipients to use the funds at a far wider range of merchants, including small businesses and roadside stalls that are already integrated into the DuitNow QR ecosystem. 

Choosing a closed-loop, proprietary system over this mature, open ecosystem created an unnecessary bottleneck that was destined to fail its first major stress test.  

The second, more philosophical flaw lies in the program’s paternalistic design. The SARA aid was not cash; it was a restricted-use credit that could only be spent on 14 approved categories of goods at select retailers. 

This design, while perhaps well-intentioned, sends a clear message of distrust. It assumes that ordinary Malaysians cannot be trusted to know what their families need most and will squander the aid on frivolous or “harmful” items.  

This assumption is not only condescending, but it is also directly contradicted by overwhelming global evidence. 

Over 100 studies on unconditional cash transfers (UCTs) have shown that people use the money wisely. 

They spend it on food, medicine, school supplies, paying off debt, and investing in small businesses. 

Critically, these studies consistently find no evidence of increased spending on “temptation goods” like alcohol or tobacco.  

This brings us to the second key recommendation: trust the rakyat and give them actual cash. An unrestricted cash transfer, delivered via e-wallet or direct bank deposit, is not only more dignified but also more efficient. 

It grants citizens the autonomy to address their most pressing needs: be it buying wet goods like chicken and fish (which are currently excluded), paying a utility bill, or covering an unexpected transport cost. 

It eliminates the costly and complex administrative burden of creating and policing approved item lists and vendor networks. 

True universalism is not just about who receives the benefit, but about how it is given. A functioning welfare system aims to empower, not control.  

The “SARA Untuk Semua” initiative remains a pivotal moment. But the technical glitches and restrictive design have provided invaluable lessons. 

But we should not throw the baby out with the bathwater. Future iterations of this and other universal programmes must be built on a foundation of trust and technology. 

By embracing modern payment systems and the proven effectiveness of unconditional cash, we can build a welfare system that is not only universal in principle but also efficient, empowering, and dignified in practice.

* Derek Kok is Senior Research Analyst at the Jeffrey Cheah Institute on Southeast Asia, Sunway University. His research focuses on social protection policies.

** This is the personal opinion of the writer or publication and does not necessarily represent the views of Malay Mail.