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Cabinet to decide on targeted subsidy mechanism this month: Rafizi | Scoop
Economy Minister Rafizi Ramli says the targeted subsidies will become effective after the government's central database system is accessible to the public. – Information Dept pic, November 6, 2023
News

Cabinet to decide on targeted subsidy mechanism this month: Rafizi

It is expected to be implemented after March 2024, says economy minister

Bernama
Updated
5:52 PM MYT

 

KUALA LUMPUR – The cabinet will discuss and decide this month on the targeted subsidy mechanism, which is expected to be implemented after March 2024, said Economy Minister Rafizi Ramli.

He stated that three implementation approaches are currently being evaluated, with qualification based on net disposable income for individuals through the social protection approach and households through a hybrid approach combining social protection and social aid, as well as subsidy cards for individuals and households.

Rafizi said that the targeted subsidies would be implemented only after the government’s central database system (Padu) is open to the public and data on whether households qualify for the subsidies can be reviewed and verified. 

“Padu will only be open in January 2024, and the public will have three months to update and verify their data in the Padu system,” he said.

The minister was responding to a question from Khoo Poay Tiong (Kota Melaka-PH) on the targeted subsidy mechanism in the Dewan Rakyat today.

Rafizi said the current plan is to ensure the overall results, system, and process are organised before the cabinet finalises the implementation date.

He emphasised that the targeted subsidy rate or amount will consider various factors, including current economic projections, among others.

“We don’t want to say now (on the subsidy rate and amount) because this can result in inflation rate speculation. (This information) will be clarified in stages,” he added. – November 6, 2023

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