Tool to implement targeted fuel subsidy, PADU, launches today

The Central Database System (PADU) is set to go live today following its official launch by Prime Minister Datuk Seri Anwar Ibrahim. 

The ceremony is scheduled from 8:30 am to 2:00 pm, which will include a presentation on PADU by Chief Statistician Datuk Seri Dr Mohd Uzir Mahidin, followed by a forum titled 'Driving Transition Through PADU.' Anwar is expected to officially inaugurate the system at 12.15 pm.

The Ministry of Economy, through its Facebook page, has announced that PADU will be accessible to all Malaysians after the launching ceremony.

What is PADU?

Beyond its role in subsidy distribution, PADU stands as the central database system for the entire Malaysian population of 32 million individuals. Managed by the Department of Statistics Malaysia (DoSM), PADU incorporates nearly 300 types of federal government data, with gradual inclusion of information from state and local authorities.

Note that banking data is excluded due to restrictions under the Banking and Financial Institutions Act 1989 (BAFIA).

PADU's implementation is geared towards achieving a more targeted distribution of subsidies, considering factors such as dependencies and locations. The government intends to move beyond general income categories like B40, M40, or T20, recognizing that these categories do not accurately represent household disposable income.

The system is expected to enhance government efficiency in service delivery, ultimately contributing to social empowerment by addressing socioeconomic disparities. To ensure the accuracy of information, individuals aged 18 and above are required to verify and update their profiles in PADU by 31-March.

Concerns regarding the safety of data stored in PADU have been addressed by Economy Minister Rafizi Ramli. He reassured the public that there would be no change in data ownership, which remains under the jurisdiction of the respective government departments or agencies contributing to PADU. Existing laws governing these entities also apply to the data used by PADU.

Rafizi said that PADU was developed without additional setup costs, with a budget of RM2 million allocated for hardware. Civil servants from three agencies - Ministry of Economy, Department of Statistics Malaysia (DoSM), and the Malaysian Administrative Modernisation and Management Planning Unit (Mampu) - collaborated on the project.

The development was accomplished within seven months, from May to December, thanks to the dedicated efforts of civil servants working tirelessly without additional allocations. This approach avoided the need for new tenders to private entities and prevented additional expenses typically associated with the introduction of new government systems.

Also read: Rafizi: Removing fuel subsidies will see 80% of Malaysian households getting cash transfers