PAS Member of Parliament for Bachok Syahir Sulaiman has urged the government to establish a “Data Addendum” to ensure the effective implementation of targeted subsidies for RON95 petrol under the Economic Ministry, which will decide the subsidy beneficiaries.
The call came amid ongoing uncertainty about the policy's criteria and execution, announced in Budget 2025.
In a press statement, Syahir highlighted several unresolved issues, including identifying the top 15 per cent (T15) of income earners who would not qualify for subsidies and the 85 per cent (B85) considered eligible.
“To date, the most basic question remains unanswered: Who exactly belongs to the T15 and B85 groups?” he said.
This is despite Economic Minister Rafizi Ramli saying last year that the T15 definition will be 'firmed up' in a month.
In the Budget 2025 presentation, Prime Minister Anwar announced the rationalization of the RON95 subsidy because foreigners and the Top 15% of consumers enjoy 40% of the fuel subsidy, which costs the government some RM8 billion.
Syahir proposed two key steps to address these gaps: conducting a pilot project to test the subsidy mechanism and engaging with various stakeholders, including households, employees, employers, and business operators. “A pilot project can help avoid potential implementation disruptions, while stakeholder engagement ensures data accuracy and empathy in policy formulation,” he explained.
The MP also pointed to the closure of the national database system, PADU, in March 2024 as a significant setback. “The lack of transparency and stakeholder involvement in PADU’s processes resulted in its failure. Yet, the lessons from this episode have not been adequately addressed,” he noted.
PADU, Rafizi's brainchild, is a centralized database that streamlines data from various government agencies. In March last year, Bloomberg reported that less than half of Malaysians updated their details in PADU. In addition to income and bank account, some of the details that must be filled in PADU include mortgage and debts, dependents in the household, and phone numbers of family members.
There was also a question on whether Anwar had snubbed Rafizi's PADU when he still used the T15 classification in his budget speech.
To rectify this, Syahir proposed reopening PADU under a new initiative, termed “PADU Bersih 2.0.” This revamped system would focus on updating, verifying, and refining data to better classify subsidy recipients. He also proposed a “Data Addendum” that would serve as an essential supplement to existing databases, addressing data collection and verification gaps. The initiative includes:
- Re-registration and Verification: Updating personal information to ensure accuracy.
- Industry Engagement: Collaborating with petrol station operators nationwide, a group previously excluded from discussions.
- Pilot Project Transparency: Publishing findings from the trial use of identity cards for subsidy claims, as the Minister of Economy mentioned in November 2024.
According to Syahir, these measures are crucial for reducing the government’s subsidy burden while minimizing the economic impact on the rakyat. “The government must provide clear explanations so that households and businesses can plan their budgets effectively,” he said.
Syahir emphasized that transparency and accountability are vital for public trust in the subsidy program. “The rakyat deserve to know how decisions are made and their implications,” he stated.
The Ministry of Economy and Finance has yet to respond to Syahir’s recommendations. The targeted subsidy scheme is expected to be rolled out by mid-2025, with further details anticipated in the coming months.
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