Ankara: Malaysia will begin providing cash handouts to all citizens aged 18 and above on August 31, the national day, Prime Minister Anwar Ibrahim announced on Wednesday.

According to Anadolu Agency, this initiative is described as 'a token of appreciation. to all citizens for their support, loyalty, and togetherness, which have fueled the agenda of national recovery and reform,' Anwar stated on X following a televised address to the nation.

Under the SARA, or Mercy Basic Contribution, initiative, citizens will receive RM100 ($24) as a one-off payment, which they can use between August 31 and the end of the year. The announcement comes in the context of rising inflation, with the cash handouts expected to benefit approximately 22 million Malaysians and cost the government RM2 billion ($472 million).

Malaysia has a population exceeding 35 million, and this cash handout marks 'the first time in history that cash assistance is distributed to all adult citizens,' the Prime Minister remarked.

In addition to the cash handouts, Anwar announced an extra public holiday on September 15 as part of National Day celebrations. He also revealed a targeted oil subsidy for around 18 million motorists, set to begin in September.