The latest report from PADU official states that the National Central Database has been downloaded 3.56 million times as of February 19. However, this only represents 10% of the Malaysian population, which is far from the intended target. The Ministry of Economy and MAMPU have led this initiative, but the uptake has been slow due to misunderstandings and a lack of trust, which is somewhat unfounded according to the Economic Minister, Rafizi Ramli. A recent report of data hack has also complicated the mission, but it turned out to be false, and the media that reported it has been called out by Rafizi for spreading fake news.
The government has reiterated numerous times on the data that is collected will be stored securely just like any other data the various agencies and ministries have of the people.
On the aspect of slow uptake, the government has several initiatives to accelerate the download of PADU and get citizens to update their profiles. Looking at the just 3 years back, when the country was struck by the pandemic, the government rolled out cash aid via ewallet, this quickly saw the uptake of ewallet. Today, e-wallet adoption has reached 16 million, with Touch N Go, Grab, and Boost dominating the market.
Similarly, we believe PADU downloads will soon accelerate as it draws nearer to the March 31 deadline. According to MIDF, the government is gearing up to announce the new petrol subsidy mechanism. Analysts at the broking house expect a managed price float mechanism for RON95, which would mean that the price of fuel will no longer be subsidized for those who do not belong to a certain category. This is where PADU plays its part. Those who have registered along with their household income will then be categorized to determine if they should be given a subsidy. Once the government has this data, it can deliver specific subsidies to specific communities based on their household income.
MIDF notes that cash assistance will be a form of rebate given to the vulnerable group once the PADU database is collected and cleaned. Upon which, financial aid can then be distributed accordingly. Once the subsidy lifting of fuel is announced, we would probably see a massive rush to download PADU. According to IDEAS, targeting subsidies and types of aid will minimize target group inaccuracy, which in turn avoids unnecessary resource wastage.
PADU’s main objective is to collect and set up the country’s main database that is secure, comprehensive, and “near real-time” to deliver periodic analytics and digitization without leakage. This will help the government make data-driven policy formulation and better decision-making processes. It will also help balance the fiscal position through targeted policy implementation.
