Malaysia

Padu system to avoid leakages in distribution of subsidies, aid, says PM

Datuk Seri Anwar Ibrahim says the poor must not be left out from receiving government benefits.

Updated 2 years ago · Published on 02 Jan 2024 2:35PM

Padu system to avoid leakages in distribution of subsidies, aid, says PM
Datuk Seri Anwar Ibrahim said the development of Padu is proof that the government machinery can design and implement novel projects without reliance on highly priced international consultants. – Screen grab pic, January 2, 2024.

THE CENTRAL Database Hub (Padu)  that was officially launched today is able to prevent leaks during the dissemination of aid and subsidies to those who really deserve them.

According to Prime Minister Datuk Seri Anwar Ibrahim, the act of targeting subsidies without a digital approach such as the Padu system would cause the "super rich" to benefit from the subsidy allocations provided by the government.

"In all the studies done, it has been stated that (subsidy aid) is not fully reaching the target groups," he said when launching the system in Putrajaya today.

"The subsidies given by the government are estimated (in) ringgit value. They now reach RM80 billion and it is not possible for (the government) to sustainably manage the finances of the national budget if these issues cannot be improved upon." 

He said that it would be alright if all of the RM80 billion in allocations are delivered to the appropriate people.

However, the government knows that 3.5 million non-citizens also benefit from the allocations, which in effect makes the collective total in such government provisions exceed RM10 billion.

Anwar, who is  minister of finance, said this in his address when launching the system at the Putrajaya International Convention Center (PICC).

He stressed that the disparity among beneficiaries must be reduced.

Specifically, the urban and rural poor must not be left out from receiving the benefits of such government assistance that is intended to positively transform the nation.

Anwar explained that system's introduction is in line with the country's digital transformation approach, ensuring that every government service will be enjoyed by the deserving recipients. 

He added that Padu is not just meant to guarantee the distribution of subsidies to target groups but also shows the country's capability.

As it is a digitised system, it enables the community at large to participate in the digital transformation of the country, he said. 

He stressed said the country’s ability to develop the system demonstrates that the Malaysian government machinery is capable of implementing new innovations without depending on highly priced international consultants.

Padu contains profiles of individuals and households, including citizens and permanent residents in Malaysia. It is an integrated socio-economic database that combines data from government departments and agencies to provide a fair representation of the socio-economic status of each household in Malaysia.

Anwar urged Chief Secretary to the Government Tan Sri Mohd Zuki Ali to monitor the implementation of the system to ensure it achieves its intended goals.

Meanwhile, Economy Minister Rafizi Ramli, who was present, said that Padu was fully developed by civil servants from three main agencies, namely the Ministry of Economy, the Department of Statistics Malaysia (DOSM) and the Malaysian Administrative Modernisation and Management Planning Unit  (Mampu), in collaboration with numerous other agencies.

Malaysians can update their personals details that are on the system by doing so online until March 31.

The data is managed by DoSM. It covers nearly 300 types of data under the federal government and will also progressively in the future take in data from state and local governments. – The Vibes, January 2, 2024

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