Padu: Implementing cash transfers a good step - Expert

SHAH ALAM - Implementing the monthly cash transfer model directly into recipients' accounts as a subsidy mechanism is a step in the right direction.

Universiti Sains dan Teknologi Malaysia economist Professor Emeritus Dr Barjoyai Bardai said the government could use existing data including from the Employees' Provident Fund (EPF) and the Inland Revenue Board (IRB) if the Central Database Hub (Padu) has not been updated yet.

"I agree with the proposal to provide subsidies directly by transferring them into the recipient's account because this is a shortcut that allows it to be implemented quickly.

"This is because we have been discussing targeted subsidies for too long and the market is also tired of waiting for when it will happen. So the government's consideration to use this method is a good step.

"However, the issue is with the data that will be used, as there are still many who have not yet registered with Padu. Therefore, I believe the method will rely on existing data that can serve as a basis," he said.

He said this in response to inquiries about the government's deliberation on implementing targeted subsidies, specifically focusing on the monthly cash transfer model.

Economy Minister Rafizi Ramli during a public dialogue session on Padu at the Shah Alam City Council Convention Centre (MBSA) on Saturday said the government is expected to consider giving targeted subsidies in the form of monthly cash transfers.

In contrast to previous practices, government subsidies are now incorporated directly into the prices of goods, benefiting all consumers regardless of their income level or citizenship status, including foreigners.