Instead, he said it involved reforming the distribution of subsidies and social aid being given to the people, especially those really in need.

Armizan said central to the implementation of this targeted subsidy policy and the reform of social aid, including cash payouts, would be the Padu integrated database hub to be launched on Jan 2.

He urged all citizens to register or verify their details with the Padu system, which will be launched by Prime Minister Anwar Ibrahim.

This will enable verification of all information on individuals and household details to make it easier for the government to decide who to give aid to, he added.

“The government will give three months until March 31, 2024 for the public to update their details on Padu,” he was reported as saying by Harian Metro in Kota Kinabalu today.

Armizan said for Padu to work efficiently, the cooperation of all parties, from the federal agencies or state governments right down to the districts and villages, was essential.

Armizan said social aid would be determined by both family income and number of dependents. This is crucial in addressing the rising cost of living issue, he added.

“We want government subsidies, which this year alone amounted to RM81 billion, to be distributed fairly to those in need. The amount of this social assistance will be based on the data in Padu.”

It was reported earlier that Padu will integrate data from various agencies. It would include personal data from the national registration department, information from the ministries of education and higher education, and details of addresses obtained from utility companies such as Tenaga Nasional and water supply operators.

Padu also collaborates with the private sector to encourage the public to register and update their data in the system.

No banking information will be integrated into Padu as the Financial Services Act does not allow any such sharing.