GEIS-新闻详情

Malaysia govt gets slow response in move to start central database to help cut subsidies

2024-03-31 00:00:00.0 海峡时报-亚洲原网页

KUALA LUMPUR – A move by the Malaysian government to set up a huge database of citizens’ details to be used for channelling subsidies to lower- and middle-income groups has hit a snag, with only over a third of the country’s 30.4 million citizens registering their profiles by March 27.

The closing date to register with the Central Database Hub (Padu) system is March 31.

The database is a key component of a wider plan by Prime Minister Anwar Ibrahim to reduce government subsidies – estimated at RM64 billion (S$18.3 billion) a year – by starting targeted subsidies and direct cash transfers based on metrics such as household income, family size and monthly expenditure.

The targeted subsidies are expected to start some time in 2024, officials have said. They are part of the 15-month-old government’s promise to improve the lives of poor families, while also reducing the government’s subsidy burden.

But there are concerns that Padu, which stores personal details, including identification card numbers and home addresses, can be hacked. As such, only about 10.6 million citizens have submitted their data despite multiple appeals by Economy Minister Rafizi Ramli, who is spearheading the drive.

There is also widespread wariness about giving the government too much personal information, with Padu asking for income level, financial commitments and expenses, among others.

The Sarawak state government has even halted the registration process, with Premier Abang Johari Tun Openg saying that Padu should not gather extensive information unrelated to the financial status of the people.

ST Asian Insider: Malaysia Edition Get exclusive insights into Malaysia in weekly round-up

Thank you!

By signing up, I accept SPH Media's Terms & Conditions and Privacy Policy as amended from time to time.

Yes, I would also like to receive SPH Media Group's SPH Media Limited, its related corporations and affiliates as well as their agents and authorised service providers.

marketing and promotions.

Critics also pointed out that the government could simply collate data already available in government agencies, such as the National Registration Department, the Inland Revenue Board and the Employees Provident Fund.

Meanwhile, high-earning Malaysians are reluctant to register as they believe that they would likely be left out of any government subsidy schemes.

“There are legitimate concerns with data protection and inadequate reasons to register... There is also a sense that public concerns have been dismissed,” political analyst Bridget Welsh told The Straits Times.

“It is a trust deficit and also a respect of concerns of public deficit,” added the honorary research associate with the University of Nottingham Asia Research Institute-Malaysia.

Mr Rafizi said on March 27 that there are 21 million working adults above the age of 18, and he had hoped to get 10 million of them on the registry by March 31. He said on March 31 that some 10.6 million people have registered.

The Anwar administration has been struggling to reduce debts incurred by previous administrations, which, as at December 2022, stood at RM1.3 trillion, including the huge annual outlay for subsidies.

Subsidies and social assistance in Malaysia have almost tripled from RM23 billion in 2010 to an estimated RM64 billion today, said a report on March 20 by Hong Leong Investment Bank. Around 82 per cent of the subsidies consists of fuel used by vehicles in Malaysia.

Currently, the blanket fuel subsidies at petrol pumps have meant that the owner of a luxury vehicle gains more when he fills up his car’s tank than a poor family with a small motorcycle.