KUCHING: Higher SKAS allocations could help steady household spending and support local business activity in Sarawak.
Universiti Malaysia Sarawak Faculty of Economics and Business senior lecturer, Farhana Ismail, said the higher SKAS allocation could help ease cost-of-living pressure on households under current economic conditions.
“The assistance served as direct support for daily spending and contributed to the stability of basic needs,” she told Sarawak Tribune.
At the same time, she said the 25 per cent special electricity discount for domestic users from April to December 2026 had the potential to raise household disposable income.
This, she added, could allow families to manage other expenses in a more balanced way.
On the business side, Farhana said the phased disbursement of aid throughout 2026 was expected to help maintain a more stable level of consumer spending.
“Stronger household spending could support domestic demand, particularly among small local businesses.
“This, in turn, could stimulate local economic activity and gradually support the continuity of small businesses.”
Farhana also said the initiative had the potential to improve cash flow in local economies, especially in rural areas, although the impact was expected to take place gradually in the short term.
“Higher household spending on essential goods would benefit small traders such as grocery shops and businesses in village areas.
“This would help keep money circulating within local communities and support the continuity of economic activity at the grassroots level,” she said.
