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New PADU To Help Reduce Fuel Subsidies by RM6 Billion in 2024

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The launch of the Main Data Platform (PADU) by Prime Minister Datuk Seri Anwar Ibrahim aims to cut fuel subsidies by RM6 billion this year through fair subsidy distribution. PADU integrates socio-economic data from various entities, allowing optimized targeting of subsidies and social assistance.

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Maybank Investment Bank suggests means testing options, including individual net disposable income for targeted cash subsidies, household net disposable income for a combined scheme, and “subsidy cards” based on net disposable income. This approach seeks to enhance the effectiveness of subsidy programs while ensuring assistance reaches those who need it most, promoting fiscal responsibility and social welfare.

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