KUCHING: Merchants converting Sarawak Basic Needs Assistance (SKAS) into cash will face strict penalties, including the cancellation of their appointment as S Pay Global service providers.
The Sarawak Public Communications Unit (UKAS) also warned in a Facebook statement that recipients who engage in cash-out activities may be blacklisted from receiving future assistance.
The newly launched financial assistance programme by the Sarawak government designed to ease the financial strain on low-income households impacted by the increasing cost of living.
Despite the initiative’s good intentions, reports have emerged of small retailers charging fees for cash-out services related to SKAS.
One user shared on Facebook that certain shops are imposing a RM50 fee for cashing out RM800, raising concerns over the exploitation of the programme.
Another concerned user expressed disbelief over the situation, questioning why some individuals complicate matters despite the good assistance provided.
She noted that while SKAS can be used for essential purchases like clothing and food, some recipients are still opting for cash-out options.
“I hope this does not become widespread; do they want to spend it hanging out at the coffee shop?” the user commented on a Facebook page.
Another user suggested that the Ministry of Domestic Trade and Consumer Affairs (KPDNKK) should monitor all businesses across Sarawak, as many traders are taking advantage of the situation by raising prices while imposing cash-out fees.
Additionally, Sarawak Property & Finance Consultancy stressed the significant impact of these cash-out fees.
While RM50 may seem like a small amount, the consulting agency said that it represents 6.25 per cent of the RM800 SKAS assistance, a substantial profit for merchants with no associated risks.
This cash flow for retailers also raises questions about the actual benefit of the assistance to those in need.
“The small amount should not be underestimated. If RM800 SKAS is spent at a supermarket from now until Dec 31, 2025, the funds could be depleted quickly.
“Based on an average of 11 months from February 2025 to December 2025, recipients would spend approximately RM72.73 per month, leading to the swift exhaustion of the aid,” said the agency in a local Facebook page.
