Govt's RM100 Cash Aid To Spur Spending, Benefit Small Traders

Barnama

29-07-2025

BUSINESS
KUALA LUMPUR, July 29 (Bernama) -- The government's RM100 one-off cash assistance is expected to generate a significant ripple effect for local economies, particularly benefiting small traders, wet market operators and neighbourhood retailers across the country.
Business and sustainability consultant Amarjeet Singh Sran emphasised that while the amount may seem modest, it serves as a relief measure for households in the Bottom 40 (B40) and Medium 40 (M40) income groups.
'More importantly, it provides a much-needed boost of liquidity to grassroots-level commerce. We are looking at an estimated RM2 billion flowing into the market almost instantly.
'That money will not sit in savings accounts… it will be spent, and that is where the retail ecosystem, especially small and micro businesses, stand to gain the most,' he told Bernama in an interview here today.
Amarjeet said small traders, food stall operators, wet market vendors and sundry shops are likely to see immediate benefits, as recipients use the cash for essential goods and daily necessities.
'From the cendol stall in Johor to the fishmonger in Sarawak, this aid empowers consumers to spend, and that spending supports livelihoods downstream,' he said.
The RM100 assistance is part of a wider government effort to reduce the financial burden on households and support the local economy, especially those grappling with rising living costs and inflationary pressures.
Combined with measures, such as stabilised petrol prices, a freeze on electricity tariff hikes, and delays in toll increases, Amarjeet said households are likely to see more disposable income, which in turn encourages retail spending.
'For example, a B40 household with five children could collectively receive up to RM500, assuming three of them are above 18 years old. That amount, when spent, brings real value not just to the family, but to every small business in their vicinity,' he explained.