The Economy Ministry has announced that the RON95 targeted subsidy mechanism will fully utilise data from the Central Database Hub (Padu), basing eligibility on net household disposable income.
Padu System Overview
Padu serves as the central data repository for Malaysian citizens and permanent residents, consolidating information for individuals and households. As of March 31, 2024, 10.55 million individuals have updated their personal information within the system. The Padu system is currently in its second phase, which involves data analysis to determine household details, reasonable expenditure, and net disposable income.
Data Analysis and Implementation
The second phase of Padu’s development focuses on analysing collected data to accurately identify household details and assess their financial status. This analysis will help determine who qualifies for the RON95 subsidy based on their net disposable income.
Response to Parliamentary Inquiry
The Economy Ministry provided this update in response to a question from Syed Saddiq Syed Abdul Rahman (Muda-Muar) regarding the number of registrations for Padu and the application of its data for targeted diesel subsidies. The ministry clarified that steps for retargeting fuel subsidies began with the Madani Subsidy Aid Programme (Budi Madani), which used the government’s existing database. Data from Budi Madani will be periodically shared and integrated into Padu to enhance the system’s accuracy and comprehensiveness.
Integration with Budi Madani
The Budi Madani program, which administers targeted diesel subsidies, utilizes the existing government database. The Economy Ministry confirmed that data from Budi Madani will be integrated into Padu periodically to ensure continuous improvement of the available data.
This integration aims to streamline the subsidy distribution process, ensuring that financial assistance reaches those most in need by leveraging comprehensive and up-to-date household data.