The ministry of domestic trade and cost of living (KPDN) says it is discussing the use of a special identification system as part of its targeted subsidy mechanism for diesel and RON 95 petrol, the New Straits Times reports.
According to KPDN deputy minister Senator Fuziah Salleh, this would be in line with the planned launch of the Pangkalan Data Utama (PADU) socio-economic database, which is set to be completed by the end of the year.
She said that prior to this, ministries would have to utilise different databases, but PADU would streamline things. In the case of targeted fuel subsidies, for example, the data would come from the inland revenue board (LHDN) and the road transport department (JPJ).
“After accumulating data from these two agencies, only then can we identify who qualifies for the subsidy. To gather all this data, the main authority will lie with PADU, which will work with the statistics department to update and streamline the info,” she said.
In May, economy minister Rafizi Ramli said the government would begin collecting household net disposable income metrics, using them as a structuring measure to ensure that targeted subsidies are more accurately distributed. These metrics will be integrated with PADU, which will combine the socio-economic information for every household in the country.
Last month, prime minister Datuk Seri Anwar Ibrahim said that while the government was in the midst of formulating its proposed targeted subsidy mechanism, it would be a while before it is announced. He said this was because of the complexity involved and getting the parameters right to ensure subsidies are delivered to the right parties.
Previously, it was reported that the government would begin its targeted fuel subsidy with diesel from next year and would monitor its effectiveness, along with that of a targeted subsidy for electricity, before announcing any decision on a targeted subsidy for RON 95.
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