Govt studying most effective aid, subsidy disbursement mechanism

THE government is still studying the most effective and efficient aid and subsidy distribution mechanism for the people, the Economy Ministry said.

It said among the methods being examined by the government are e-vouchers, e-wallets and channelling cash directly to banks.

“For example, the Sumbangan Tunai Rahmah cash payment will be channelled directly to recipients’ bank accounts, while selected assistance schemes under the Social Welfare Department are done via e-wallets,” said the ministry in a written reply uploaded to the Parliament website today. 

In line with the government’s move towards a digital economy, the implementation of a cashless ecosystem such as an e-wallet would encourage the public to adopt new technology, it added.

Nevertheless, cash distribution must also be considered for government aid recipients in rural areas who are faced with the problem of access to telecommunications networks.

“Based on this matter, the distribution mechanism needs to be scrutinised further to ensure the channelling of the cash aid could be implemented more efficiently,” said the ministry. – Bernama, November 30, 2023.