Malaysia has enough data to push ahead with subsidy cuts: economy minister

THE Malaysian government has received the updated profiles of more than half of all its citizens, paving the way for the South-east Asian nation to proceed with its long-awaited plans to cut fuel subsidies this year and tighten its finances.

About 11.55 million Malaysians over the age of 18 keyed in their details in the government centralised database known as Padu, according to Economy Minister Rafizi Ramli, exceeding his initial target of 10 million sign-ups by the Mar 31 deadline. The updates – which include details of personal income and expenses – account for 58.7 per cent of its citizens’ profiles, he said.

The response is enough to enable authorities to determine where handouts should be directed once the nation limits subsidies on the cheapest form of petrol, according to Rafizi. The government will rely on existing administrative data for citizens who failed to register with Padu, he said.

“The Economy Ministry will next present its plans to re-target subsidies to the Cabinet in April,” Rafizi said on Monday (Apr 1). “Any announcement on this matter will be made by the government in the future.”

Prime Minister Anwar Ibrahim is under pressure to undo hefty subsidies to boost investors’ confidence in the country, with the Malaysian ringgit languishing near a 26-year low. The government estimates savings of at least US$1 billion to US$2 billion a year from a shift to handouts that target only the needy.

The Economy Ministry may reopen Padu registrations for a short period if necessary, once the government decides on the form and mechanism of its targeted subsidies, Rafizi said. BLOOMBERG

A NEWSLETTER FOR YOU

Friday, 8.30 am

Asean Business

Business insights centering on South-east Asia's fast-growing economies.

Sign Up