Dr Mahathir Mohd Rais
The government recently announced the end of its diesel subsidy program, mandating that eligible individuals must now register with the new BUDI MADANI system under the Ministry of Finance to access any forthcoming subsidies.
This new directive comes on the heels of a previous requirement that had citizens register through the PADU system, with stark warnings from the government about the repercussions of non-registration, including losing access to subsidies and other government aid.
However, in a surprising turn of events, the government declared that to receive a monthly subsidy of RM200, qualified individuals must register through BUDI MADANI, not PADU.
This sudden switch has left many questioning the usefulness of the PADU database and why citizens are required to register again, leading to widespread confusion and frustration.
In response to queries in Parliament, the Minister of Economy explained that PADU is designed to serve as an inter-ministerial system, which will eventually be used by all ministries to implement various assistance programs, including targeted subsidies.
Despite these assurances, the coordination between the Ministry of Finance and the Ministry of Economy has been criticized, raising concerns about the governance and management of these transitions.
For small-scale farmers and plantation owners, the process is further complicated.
They are directed to apply for subsidies through the BUDI Agri-Commodity system, necessitating additional registration with both the Ministry of Agriculture and Plantation Industries.
Moreover, to be eligible for subsidies, these farmers must demonstrate a minimum monthly income of RM4,166, equivalent to RM50,000 annually—a threshold that is quite challenging for those whose primary sales venues are local morning markets, small-town day markets, or roadside stalls.
This development begs a critical question: who benefits more from the restructuring of these subsidy programs?
Is it the large business owners or the modest rural laborers who struggle to meet the set income requirements?
The situation underscores the need for a review and possibly a redesign of the subsidy distribution framework to ensure it is fair and beneficial to all, particularly those it intends to support.
About the author: Dr Mahathir Mohd Rais is the Perikatan Nasional Federal Territories State Secretary.This is an opinion column. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of this publication.
Media & PR: editor@dailystraits.com. Copyright 2021–Present DailyStraits.com. All rights reserved.