Gov’t could use MySejahtera app to hand out targeted subsidies, leakage is a problem – deputy FM

When was the last time you opened MySejahtera? Our daily companion during the pandemic has gone dormant in most phones, but don’t delete it just yet, as MyS could be the channel for the government to hand out targeted subsidies, when they’re ready to do so.

If you’re not aware, the government has long talked about phasing out our current blanket subsidy system in place of targeted subsidies. The idea is that only those who deserve help will be given help, instead of everyone enjoying a subsidised price. The problem is the mechanism – how to dish out the help and prevent leakage?

According to deputy finance minister Steven Sim, the government is exploring various mechanisms to implement targeted subsidies, including using the MySejahtera application. He said that a special panel set up under MoF is studying several mechanisms to ensure those deserving of the subsidies were not left behind.

“The mechanisms for targeted subsidy implementation are being studied in detail, including using apps like MySejahtera and such. I agree there is an issue of leakage in terms of our subsidies,” he told senators in the Dewan Negara today, reported by Utusan Malaysia.

“It’s not easy for any government to implement targeted subsidies because those who can’t receive them will be angry. Even if they are foreigners, they will still complain,” the Bukit Mertajam MP added.

So, when will targeted subsidies finally kick off? Early next year, according to economy minister Rafizi Ramli. It will be based on the Pangkalan Data Utama (PADU) socio-economic database that incorporates household net disposable income metrics – more on that here.

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