Today (Jan 2), Prime Minister Anwar Ibrahim launches the Main Database System (PADU), an initiative aimed at streamlining the verification and updating process for socio-economic data.
“The government will be able to strengthen assistance to the people, ensuring that all eligible recipients receive aid while, at the same time, reducing the wastage of assistance to those who are not eligible. In other words, it can minimize inclusion and exclusion errors.” Anwar emphasised PADU’s objective during his speech.
“As everyone is aware, issues of wastage and inefficiency in government spending, including the distribution of subsidies and aid, persist. The current methods are seen as less effective, with some deserving individuals not benefiting from government subsidies and aid, while others who are ineligible also enjoy the benefits. Therefore, the government needs to take bold steps by transitioning to a targeted subsidy realignment.” said Minister of Economy, YB Mohd Rafizi bin Ramli adding more on the relevant of establishing PADU.
Chief Statistician Datuk Seri Mohd Uzir detailed the significant launch at the International Convention Center Putrajaya.
The PADU system will be accessible for a three-month period, starting today after 12:30 PM until March 31, encouraging citizens to actively participate in the verification process.
The success of PADU’s implementation hinges on the accuracy of data provided by the people, as emphasised by Chief Statistician Datuk Seri Dr. Mohd Uzir Mahidin.
He urged Malaysians to share genuine data through the database, highlighting its pivotal role in shaping government policies and facilitating financial and social assistance.
While existing data from government agencies will be utilised, citizens are requested to review and update information related to 39 key data points, covering basic information, addresses, education, household details, employment, income, commitments, and assistance.
PM Anwar, during his speech at the launching of PADU highlighted the achievements of the MADANI administration in 2023, including robust economic growth, controlled inflation, decreased unemployment, and infrastructure improvements. Looking ahead to 2024, the government remains committed to the MADANI agenda, focusing on the well-being, welfare, and prosperity of the people, and PADU is one of the government effort to achieve the agendas.
The development of the Main Database System (PADU) is a testament to the MADANI approach, reflecting a whole-of-government effort.
“The sharing of data involves PADU integrating information on income, demographics, and assistance received by the people. By constructing a holistic profile for each individual, it enables data analysis and aids in formulating more precise policies to meet the needs of the population.” Anwar said.
Rafizi during his speech also highlighted the same issue, “PADU will enable the government to provide a more accurate measurement of the socio-economic status of the people and prevent misallocation based on net disposable income. This measurement method takes into account the number of dependents and household size, cost of living based on location, distance to workplace, and ownership of assets such as homes, vehicles, and land. This approach also allows the government to move away from the concept of B40, M40, and T20 and focus more on the fairness of aid distribution based on established criteria.”
The idea was discussed during the MTEN meeting on May 15, 2023, with an emphasis on phased implementation to ensure seamless integration. Although today marks the initial step, the journey ahead involves continuous development and auditing to enhance the quality of this foundational product.
In implementing targeted subsidies, complete data sources like PADU and other databases, including Sumbangan Tunai Rahmah and e-madani assistance, prove instrumental.
The government assures a gradual and measured approach to implementing targeted subsidies for other goods to prevent uncontrolled inflation while continuing to support those in need.
“I will inform about the specific methodology for this step at an appropriate time, following discussions with all stakeholders. I assure that the fate of the people will never be neglected.” Anwar added.
In concluding, the success of PADU is attributed to the collaborative efforts of the Ministry of Economy, Department of Statistics Malaysia (DOSM), and the Malaysian Administrative Modernisation and Management Planning Unit (MAMPU), alongside all contributors since May 2023.
Uzir stated, to ensure widespread access, the registration operation will be open seven days a week from 8 AM to 5 PM at 44 Department of Statistics (DOSM) operation offices, 911 Digital Economic Centers (PEDI), and 27 Urban Transformation Centers (UTC) nationwide.
“We will also be in the field, including rural and interior areas, to ensure that the PADU registration is more comprehensive,” he added
