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Malaysia
This Week in AsiaEconomics

Malaysia defends subsidy-linked database even as millions shun it over hacking fears

  • Only 11.6 million people have registered in the database, well short of the 22 million targeted by the authorities
  • Prime Minister Anwar Ibrahim is aiming to slash Malaysia’s US$17 billion annual subsidy bill, partly through targeted state aid

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A street food vendor in Kuala Lumpur, Malaysia, on March 22. Photo: Bloomberg
Joseph Sipalan
Malaysia’s government has defended its new subsidy-linked citizens’ database, as millions of Malaysians opted out over fears that the authorities have not done enough to make sure their private data does not fall into the hands of hackers and cybercriminals.
The government launched its new central database (PADU) in January, aimed at providing Prime Minister Anwar Ibrahim’s administration clear guidance on who qualifies for state aid as it pushed for a targeted subsidy system to replace the current broad-based subsidy plan that cost a hefty US$17 billion last year.

A total of 11.6 million Malaysians aged 18 and older had signed up for the new central database (PADU) by the deadline on Sunday night, Economy Minister Rafizi Ramli said in a statement on Monday.

The figure was just over half the 22 million adult Malaysians targeted by the new database - one of the various efforts by Anwar’s administration to reform government spending and trim its budget deficit to 4.3 per cent of gross domestic product, from 5 per cent last year.

“The economy ministry will proceed to present its planning for targeted subsidies to Cabinet in April,” said Rafizi, who declared the PADU rollout a “success”.

Local media outlets on Sunday ran splashes on their websites and social media of long queues at physical kiosks nationwide as Malaysians rushed to sign up with the database before the deadline.

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