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PADU development cost is over RM85 mil, says Rafizi – so why isn’t it fully used for targeted fuel subsidies?

PADU development cost is over RM85 mil, says Rafizi – so why isn’t it fully used for targeted fuel subsidies?


PADU development cost is over RM85 mil, says Rafizi – so why isn’t it fully used for targeted fuel subsidies?

If you’re wondering how much it has cost to develop the Pangkalan Data Utama (PADU) socio-economic database, here’s the answer. From 2023 till now, the government has spent RM85.27 million to get the much-vaunted integrated national socio-economic database in place, The Star reports.

According to economy minister Rafizi Ramli, the cost includes that for equipment and ICT software, checking and verification services, publicity services and strategic communications for the platform. The sum spent also covers the registration of users, both online and offline, he said in a written reply in parliament, made in response to a question by Salamiah Mohd Nor (PN-Temerloh) on eligible recipients of targeted subsidies based on the PADU database.

The database, which was officially rolled out on January 2, is supposed to combine all available data of individuals and households collected from government departments and agencies, making it a key component in how the government retargets subsidies and assistance, utilising household net disposable income metrics as an indicator.

PADU development cost is over RM85 mil, says Rafizi – so why isn’t it fully used for targeted fuel subsidies?

In early communication about it when it was launched, the government said that the data collected by PADU would be used to determine eligibility for its targeted fuel subsidy, but the subsequent emergence of the Program Bantuan Subsidi Madani following the move to implement targeted fuel subsidies starting with diesel raised questions about how big a role PADU actually played in determining things in the diesel rationalisation programme.

Much of this is down to having diesel owners register themselves for aid under Budi Madani, which begs the question – if PADU has all the necessary data, why can’t it be used to determine who is eligible and who isn’t, and why the need to register yet again on Budi? After all, it has been established that the database has info on all the cars you own, as well as relevant data that would determine if you qualify or not for assistance.

The lack of dynamic and complete data could have something to do with that, with Rafizi revealing that PADU now has data on 10,544,016 individuals.

This is marginally lower than the around 10.85 million that was said to have signed up at the end of the registration period (March 31). While that number was nearly 50% of the total number of 21.96 million Malaysians aged 18 and above (out of 30.08 million individuals placed in the database), that’s also half the available dynamic data the government has at its disposal to quantify things. One can only hope that the process for RON 95 petrol will be smoother and more transparent when it comes.

Whatever the case may be, PADU chugs on, with Rafizi stating that the database has entered the second phase, which involves analysing and streamlining the data of those registered on it. He said that this phase also includes determining household size, expenditure, net income and forming a “use case.”

Regarding the mechanism for targeted subsidies, he said the criteria for the use case are still being determined. “The government will ensure a fair mechanism to identify beneficiary groups and minimise inclusion and exclusion errors,” he said.

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