Malaysia's move for targeted subsidies hits database snag

Only a third of citizens submit their personal info, amid data security fears

- Azril Annuar

A move by the Malaysian government to set up a huge database of citizens' details to be used for channelling subsidies to lower- and middle-income groups has hit a snag, with only over a third of the country's 30.4 million citizens registering their profiles by March 31.

The closing date to register with the Central Database Hub (Padu) system was March 31.

The database is a key component of a wider plan by Prime Minister Anwar Ibrahim to reduce government subsidies - estimated at RM64 billion (S$18.3 billion) a year by starting targeted subsidies and direct cash transfers based on metrics such as household income, family size and monthly expenditure.

The targeted subsidies are expected to start some time in 2024, officials have said. They are part of the 15-month-old government's promise to improve the lives of poor families, while also reducing the government's subsidy burden.

But there are concerns that Padu, which stores personal details, including identification card numbers and home addresses, can be hacked. As such, only about 10.6 million citizens have submitted their data despite multiple appeals by Economy Minister Rafizi Ramli, who is spearheading the drive.

There is also widespread wariness about giving the government too much personal information, with Padu asking for income level, financial commitments and expenses, among other things.